The Corona Virus and investing the negative affects !

Discussion in 'Bullion Investing' started by mpcusa, Mar 8, 2020.

  1. baseball21

    baseball21 Well-Known Member

    Because people start leaving including the rich after a while. No ones really saying stick to hard budgets but at least make an attempt and not just keep adding new taxes to cover for it
     
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  3. FryDaddyJr

    FryDaddyJr Junior Member

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  4. baseball21

    baseball21 Well-Known Member

    Lol an educated person would know the difference between federal and state taxes
     
  5. John Skelton

    John Skelton Morgan man!

    Or they don't raise taxes at all, but simply pay for things by increasing the deficit.
     
  6. baseball21

    baseball21 Well-Known Member

    Even when they raise the taxes that still happens. Right now is obviously an exception as no one cares and putting billions of people on the street around the world isn't an option, but yea before this some states were losing even rich people as the rates had gotten to high for even their taste
     
  7. John Skelton

    John Skelton Morgan man!

    But haven't you heard? The rich pay less taxes because they know the loopholes d.
     
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  8. GoldFinger1969

    GoldFinger1969 Well-Known Member

    The State of NJ imposed a "Millionaires Tax" designed to "get" the Super Rich. The wealthiest person in the state, hedge fund manager David Tepper, was paying anywhere from $30 million - $150 million in STATE income taxes EVERY year.

    The politicians got greedy and Tepper re-domiciled to Florida. He now pays a tax rate of 0% to NJ.... meaning an income tax of.....$0.00. :D
     
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  9. crazyd

    crazyd Well-Known Member

    I guess you could the argument you are never "free" with ANY form of taxes, but I disagree with that as well.
     
  10. baseball21

    baseball21 Well-Known Member

    I think there’s a difference where the overwhelming majority of people realize they are a necessary evil, it’s just frustrating when it’s levied on something you’ve already paid for especially if it’s completely paid for.

    Renting and leasing look much more attractive in that context
     
  11. desertgem

    desertgem Senior Errer Collecktor

    The taxes are figured as part of the rent/lease , as are all sorts of fees such as HOA, services, repairs, assessments, etc. Rental property reduces the owner's taxes quite a bit early on, so you can gain value by both income and decreased taxes, until you reach the midpoint of the mortgage on the unit and then the benefit narrows and disappears. But most rental owners can sell or trade units and start over with different addresses. This may be a very good time to consider rentals. Hint: buy in a popular area such as near a university or college where is a constant rotation and turn over. IMO, Jim
     
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  12. GoldFinger1969

    GoldFinger1969 Well-Known Member

    How is renting a property going to affect taxes ?

    Whether you live in a house or apartment, the taxes are set by the town/city....you can live in the home, rent it, or keep it empty -- taxes are going to be the same.

    I don't know about the "start over" part but pure rentals near college towns can be super-hot. The problem is its probably already in the price of buying such a rental property. My nieces went to the Univ. of Delaware, and you have these crappy little homes that get rented out for $3,000 a month by 5 or 6 college kids. They all look like they are from the wrong side of the tracks !
     
  13. desertgem

    desertgem Senior Errer Collecktor

    "The taxes are figured as part of the rent/lease , as are all sorts of fees such as HOA, services, repairs, assessments, etc."
    I was referring to the comparison above about renting to avoid taxes. I was commenting that if you rent , you were still paying for the taxes as the landlord adds the expenses + income to determine the bottom amount of the rent required.

    .
    We are about 2/3 through the mortgages we have refinanced when rates dropped sufficiently a decade or so ago. The rentals are all within a mile of the college, with county paths so they can walk , bike, even skatboard, etc.. Parking is a big problems so the college limits their lots and the streets are full. The HOAs thankfully are tightly managed so people are careful to avoid fines.

    Before the Corona, I would receive 1-3 calls inquiring about a possible purchase, a week. Not a single one since. and the local paper says repossessions are increasing. Since I am in cash rather than metals or stocks , it might be a buying opportunity, but we will see. Jim
     
  14. baseball21

    baseball21 Well-Known Member

    The big wild card is how long it takes for colleges to go in person again, or if they fully do.
     
  15. losthomer

    losthomer Active Member

    It sounds like a win for Tepper except that he now lives in Florida. No thanks. All the nuts roll down hill.
     
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  16. GoldFinger1969

    GoldFinger1969 Well-Known Member

    That tax revenue has to be made up somehow -- the state isn't cutting spending.

    So it falls on the middle class who are not as easily mobile.

    This is how a tax designed to address "fairness" ends up costing the very people the pols say they want to help.

    Oh, and about that massively underfunded pension plan, New Jersey.....:D
     
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  17. John Skelton

    John Skelton Morgan man!

    And where do people go to avoid federal taxes? Especially when they will have to increase if we ever expect to balance the budget?
     
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  18. GoldFinger1969

    GoldFinger1969 Well-Known Member

    Balancing the budget isn't as important as just getting entitlements under control. Do that, and the budget will fix itself.

    Entitlement have been going nuts since the 1960's. :mad::mad:
     
  19. FryDaddyJr

    FryDaddyJr Junior Member

    I guess we can't afford this huge military any more. No one seems to want to pay for it either.
     
  20. GoldFinger1969

    GoldFinger1969 Well-Known Member

    Military spending has been slashed proportionately since the 1950's and 1960's as a % of the federal budget (50% down to 18%) and of GDP (from 8% down to 4%).
     
  21. FryDaddyJr

    FryDaddyJr Junior Member

    Estimated U.S. military spending is $989 billion. It covers the period October 1, 2019, through September 30, 2020. Military spending is the second largest item in the federal budget after Social Security. The United States spends more on defense than the next nine countries combined.
     
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