if we use 3 Pct inflation and a tax rate of
33 Pct, you would need a 7.5 Pct return
on fixed income to meet the 2 Pct goal.
Is this really possible without a bond
trading approach.
Perhaps you are including Preferreds,
REITS, etc. but those bring higher
risks.
i think the analysis of this issue has to get
into more detail. My indications as follows. Federal Income Taxes -
Tax rates on families seem reasonable,
Especially families with children Tax rates on individuals seem too high.
the 22 Pct marginal rate starts below 50 K
And when you add state and FICA taxes
can easily reach 35 Pct marginal rate at
Moderate income levels There are a lot of issues with investment
Taxes and the Corporate Tax but maybe
It gets too complicated to discuss here. State Taxes - Numerous blue states have ludicrous
taxes, driven by very high demands of
politically powerful public employee
unions. On the other hand, numerous red states
seem undertaxed. Florida , as an example,
ranks 49 th in teacher salaries, even though
it is a growing and prosperous state. We should all bear in mind that the
United States is unique in that it
has high defense spending and high
health care costs. If we tried to emulate,
a Scandinavian type welfare state model,
we would raise tax rates to a level that
would likely suppress economic growth.
Governments can’t afford it.
Public employee unions put
put pressure on politicians,
who understand that details like
IRMAA reimbursement are too
obscure for taxpayers to grasp.
Public interest not well served.
Generally agree but with some qualifications.
Property taxes, unlike income and sales
Taxes,are fixed costs and I would agree
To some consideration for seniors, e.g.
raises capped at 50 Pct of the general
Increase.
I think it is OK to help retirees stay in their
homes in high tax states if that is their preference.
In New York public sector retirees pay no
State income tax in their pensions. Private
sector employees only have a 20 K per
person exemption - a level that has not
been adjusted since the 1990’s -
best to look at the whole picture.
We have established programs and tax policies
that address the issue you raise.
Earned income tax credit (EITC) and
SNAP as well as the child tax credit.
Benefits can be significant - I calculated
that a family of four earning 35 K, which
would be close to New York’s minimum
wage would have about 16-18 K of
benefits from EITC and SNAP.
https://mclagan.aon.com/aon.mclagan/media/files/2020/2020_07_CEO-pay-for-private-vs-public-companies.pdf?ext=.pdf Located a 2020 Aon study
indicating CEO pay targets
dramatically above your
BLS indication covering
A broad range of public
and private entities.
I think the number of 400K is
impossible for public company
CEO’s. Median number for
S and P 500 is shown on line as 16.3 million.
Additionally, there may be
Very valuable exit packages.
pls look at Randall Stephenson
of ATT whose pension was
valued at 64 million
this is after engineering two
failed acquisitions -
Direct TV and Warner i have no problem with rewarding
a CEO who delivers great operating or deal making
results. But comp is often influenced by stock price
and that is subject to many
extraneous factors. I did not mention public
companies in my initial
comment as I assumed
that your article was about
a public company.
Leaving aside the fact that executive comp
in the U.S. is a scandal, isn’t it better to
have institutions that manage long term
liabilities in a responsible manner rather
than have them threaten the company’s
future ?
The auto industry was never able to deal
with retiree health care and the result
was bankruptcies at GM and Chrysler and
extreme financial stress at Ford.
Many public sector pension plans
and retiree health plans are huge
headaches as well - will not go into the
causes.
Maybe a good approach for companies
like Mr. Quinn’s would be to provide
some stock options to employees losing
expected but not contractually promised
benefits.
Pennsylvania dies not tax retirement
income (pensions, 401 k’s etc) and it makes
up for that through the use of an inheritance
tax.
But the rate structure of the inheritance tax
has always seemed questionable to me.
it jumps from 4.5 Pct for children to
12Pct for siblings and 15 Pct for nieces,
nephews and all other inheritors.
Is it really appropriate fir the state to
impose differential tax rates in this manner ?
People have many reasons they may wish
to leave assets to inheritors other than their
children, or they may simply not have
children. Rate structure of this type does
not seem reasonable to me.
Comments
if we use 3 Pct inflation and a tax rate of 33 Pct, you would need a 7.5 Pct return on fixed income to meet the 2 Pct goal. Is this really possible without a bond trading approach. Perhaps you are including Preferreds, REITS, etc. but those bring higher risks.
Post: “Most Revealing Question in Personal Finance”
Link to comment from June 6, 2025
i think the analysis of this issue has to get into more detail. My indications as follows. Federal Income Taxes - Tax rates on families seem reasonable, Especially families with children Tax rates on individuals seem too high. the 22 Pct marginal rate starts below 50 K And when you add state and FICA taxes can easily reach 35 Pct marginal rate at Moderate income levels There are a lot of issues with investment Taxes and the Corporate Tax but maybe It gets too complicated to discuss here. State Taxes - Numerous blue states have ludicrous taxes, driven by very high demands of politically powerful public employee unions. On the other hand, numerous red states seem undertaxed. Florida , as an example, ranks 49 th in teacher salaries, even though it is a growing and prosperous state. We should all bear in mind that the United States is unique in that it has high defense spending and high health care costs. If we tried to emulate, a Scandinavian type welfare state model, we would raise tax rates to a level that would likely suppress economic growth.
Post: Are taxes too high? I don’t think so
Link to comment from May 28, 2025
Governments can’t afford it. Public employee unions put put pressure on politicians, who understand that details like IRMAA reimbursement are too obscure for taxpayers to grasp. Public interest not well served.
Post: Have you planned survivor income for your spouse or someone dependent on you?
Link to comment from May 6, 2025
Washington Post lost 100 million last year. Perhaps the cash payout exceeded the PGBC guaranteed value and that was a major factor in the decision.
Post: RDQ considers: A lump sum in lieu of a pension, withdrawal strategies, annuities and other mundane decisions – good luck.
Link to comment from March 16, 2025
Generally agree but with some qualifications. Property taxes, unlike income and sales Taxes,are fixed costs and I would agree To some consideration for seniors, e.g. raises capped at 50 Pct of the general Increase. I think it is OK to help retirees stay in their homes in high tax states if that is their preference. In New York public sector retirees pay no State income tax in their pensions. Private sector employees only have a 20 K per person exemption - a level that has not been adjusted since the 1990’s - best to look at the whole picture.
Post: Like it or not, we all need to pay taxes. Seniors are no exception
Link to comment from March 16, 2025
We have established programs and tax policies that address the issue you raise. Earned income tax credit (EITC) and SNAP as well as the child tax credit. Benefits can be significant - I calculated that a family of four earning 35 K, which would be close to New York’s minimum wage would have about 16-18 K of benefits from EITC and SNAP.
Post: Quinn ponders the minimum wage, a living wage and the possible consequences of changes for all
Link to comment from September 7, 2024
https://mclagan.aon.com/aon.mclagan/media/files/2020/2020_07_CEO-pay-for-private-vs-public-companies.pdf?ext=.pdf Located a 2020 Aon study indicating CEO pay targets dramatically above your BLS indication covering A broad range of public and private entities.
Post: Jonathan is right, employers don’t care, but that’s not the real problem- it’s people
Link to comment from September 3, 2024
I think the number of 400K is impossible for public company CEO’s. Median number for S and P 500 is shown on line as 16.3 million. Additionally, there may be Very valuable exit packages. pls look at Randall Stephenson of ATT whose pension was valued at 64 million this is after engineering two failed acquisitions - Direct TV and Warner i have no problem with rewarding a CEO who delivers great operating or deal making results. But comp is often influenced by stock price and that is subject to many extraneous factors. I did not mention public companies in my initial comment as I assumed that your article was about a public company.
Post: Jonathan is right, employers don’t care, but that’s not the real problem- it’s people
Link to comment from September 2, 2024
Leaving aside the fact that executive comp in the U.S. is a scandal, isn’t it better to have institutions that manage long term liabilities in a responsible manner rather than have them threaten the company’s future ? The auto industry was never able to deal with retiree health care and the result was bankruptcies at GM and Chrysler and extreme financial stress at Ford. Many public sector pension plans and retiree health plans are huge headaches as well - will not go into the causes. Maybe a good approach for companies like Mr. Quinn’s would be to provide some stock options to employees losing expected but not contractually promised benefits.
Post: Jonathan is right, employers don’t care, but that’s not the real problem- it’s people
Link to comment from September 2, 2024
Pennsylvania dies not tax retirement income (pensions, 401 k’s etc) and it makes up for that through the use of an inheritance tax. But the rate structure of the inheritance tax has always seemed questionable to me. it jumps from 4.5 Pct for children to 12Pct for siblings and 15 Pct for nieces, nephews and all other inheritors. Is it really appropriate fir the state to impose differential tax rates in this manner ? People have many reasons they may wish to leave assets to inheritors other than their children, or they may simply not have children. Rate structure of this type does not seem reasonable to me.
Post: A Time to Give
Link to comment from August 24, 2024