The big tax cut proposals

6757856139_a3988deaff_zPresident Trump is releasing details of his tax cut proposals.

He would significantly raise the standard income tax deduction from $6,300 for an individual and $12,600 for married couples.  Exactly how much has not been released, but in his campaign Trump suggested $15,000 for an individual and $30,000 for families.

He would also cut the corporate tax rate from 35% to 15%.  Other breaks are also in the works.

This would be a huge tax cut for both individuals and businesses.  Most of us would love that.  The problem is, what would it do to the federal deficit?

UPDATE:  We now have more details about Trump’s proposed tax plan.  Go here.  Briefly, the standard deduction would double, the seven brackets will go down to three (10%, 25%, 35%), the estate tax and the alternative minimum tax will go away.  But tax deductions will end except for mortgages, retirement savings, and charitable giving. [Read more…]

Where your taxes go

shakedown-1340048_640Tomorrow taxes are due.  So it’s fitting to contemplate where your tax money goes.

To make it easier to comprehend, the non-partisan Committee for a Responsible Federal Budget looked at a representative $100 paid in taxes.  Of that, 8 cents goes to national parks, $15 goes for Medicare, $21 goes for defense, $50 goes for Social Security and health care programs like Medicare and Medicaid, etc., etc.

One observer said that the data supports the view that the United States is “a giant insurance company with an army.”  See details after the jump.


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The middlemen that survived the internet

abode-987096_640The internet has damaged travel agents, taxi drivers, retailers, and other industries.  But one set of middlemen have not been damaged at all:  real estate agents.

Though there is lots more real estate information online–e.g., Zillow–when people sell and buy houses, they still go to real estate agents, 5-6% commissions and all.

Either this is a niche that needs filling–if you can do so, remember me when you come into your billions–or this particular industry demonstrates the commercial limits of the internet.

Which is it?  What makes real estate agents immune from competition from the internet?


Illustration from Pixabay, Creative Commons, Public Domain

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From energy scarcity to energy abundance

Schematic_cross-section_of_general_types_of_oil_and_gas_resources_and_the_orientations_of_production_wells_used_in_hydraulic_fracturingNewspapers tend to offer good coverage of their city’s main industry.  So if you want financial news, read the New York Times or the Wall Street Journal.  If you want entertainment news, read the Los Angeles Times.  If you want political news, read the Washington Post.  If you want news about the oil industry, read the Daily Oklahoman.

It even has an energy editor, Adam Wilmoth, who reported on an eye-opening industry symposium at the University of Oklahoma.  We learn about the impact of new oil production technology–such as fracking, horizontal drilling, and oil shale extraction–which has transformed our energy situation from scarcity to unimaginable abundance.

But some will not like to hear this, especially the point about how, in light of the new superabundance, it’s now not bad for energy consumption to go up.  And, if these figures are correct, there may not be that much economic impetus for alternative energy sources.  Much of the new technology has made oil production more environmentally friendly–there are now only 500 active rigs, pumping far more than the 4,500 rigs in 1981 and the 1,500 rigs in 2014.  But those worried that burning carbon contributes to global warming will be frustrated that economic forces will be working against them.  And we Oklahomans do not like all of our new earthquakes, which are apparently a by-product of the new oil industry.

Still. . .isn’t energy abundance a good thing and better than the alternative?  Or not?

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National debt will double in 30 years

debt-1500774_640The Congressional Budget Office released figures that project the national debt to double by 2047.

That would take it from the existing 75% of the Gross Domestic Product, which is bad enough, to 150% of the GDP, which is unthinkable.

I know!  Let’s cut taxes and increase spending!


Illustration by Rilsonav, “Debt,” Pixabay, Creative Commons.

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The decline of Christian bookstores

FamilyChristianStoresAppletonWisconsinThe biggest Christian bookstore chain, Family Christian Stores, is going out of business.  Then again, mostly what it carried was Christian knick-knacks.

As for books, the top 20 Christian bestsellers last year included, the words of one observer,  “three versions of Sarah Young’s controversial Jesus Calling, two kids joke books, two adult coloring books, titles by HGTV stars and athletes, and, of course, the latest from Joel Osteen.”

Better Christian books are still selling, largely on Amazon, but they often aren’t even carried by Christian retailers.

Then again, all brick and mortar bookstores are having a rough time.  Having put small mom and pop shops out of business, the big chains are now struggling against online sales.  Borders is gone, and Barnes & Noble is having a rough time, kept alive mainly by its own online offerings.

I regret the closing of bookstores.  There are still some excellent Christian bookstores, such as Wichita’s Eighth Day Bookstore (which also sells books online).  But Christians and the general public are still reading, helped too by Kindle and other readers that can download books instantly.

An article in Christianity Today, linked after the jump. argues that the end of Christian Retail that trades mostly in “Jesus junk” is not necessarily a bad thing.

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