Saturday, September 29, 2012

The Romney tax policy

Conceptually, it's not more regressive than what we have but it's being labeled as such by Obama supporters who conflate marginal tax rates with effective tax rates.

Lower marginal rates on a broader base of income is a step toward real tax reform.  Reduce the mountain of deductions, credits and incentives -- apply lower marginal rates to a greater aggregate of taxable income and in the process remain revenue neutral while simplifying the code.  What's wrong with that?

The problem for Obama's supporters is that remaining revenue neutral might help curb federal spending.  Fomenting class warfare is often an effective way to divert the conversation away from government spending.


(This is a CEO, not a Community Organizer)

Sunday, September 16, 2012

FORTUNE-ATE? Don't sulk, resist!

In his piece from the current issue of Fortune magazine, Geoff Colvin says the current environment is a "...nasty, insidious force that's undermining the native optimism that buoys up business people everywhere" and then admonishes readers with one word -- "Resist!"

I like it.  I liked another article in this issue about prospering in difficult days, by Ms. Mina Kimes who wrote about a manager for the MFS International Value Fund -- Mr. Barnaby Wiener. 

I'm not an investment adviser and I'm wary of many (most?) of them.  I largely stick to index funds, but Mr. Wiener's actively-managed fund according to Fortune, is one of the best in its class having outperformed 99% of its peers since 2002.  Impressive, but what surprised me was his bias toward risk aversion. 

Mr. Wiener believes "It's much more important to avoid losing money than it is to make money."  I agree.  He adds, "If you avoid the big losses, you make money almost by default."

It seems consistent with Warren Buffet's view, "The first rule of investing is don't lose money; the second rule is don't forget Rule No. 1."  Anyway, please read on...

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Election year stakes and all I care to say today 
1. The presidential election is only 50 days away.
2.  It's the most important election of my conscious lifetime (in other words, since I was 26).
3.  We desperately need a CEO more than a Community Organizer with velvety speeches.
4.  Encourage everyone still on the fence to get out and vote for Mitt & Paul.
Wiki image by Gage Skidmore


Wikipedia, Ryan official portrait
5. Thanks!