Recently, I took a two-day refresher course in Calgary on Personal Income Tax. Two full days of painful, technical details, but the lunches were good. Quoting from the teaching professional, our taxes, and especially the sequencing of tax credits, is “insanely difficult.” Did you know that from 2015 to 2016 the top marginal rate in Alberta rose from 39% to 48%? The number of tax brackets increased from five to nine. The future looks even worse. As governments continue overspending to “stimulate” the economy, they push the financial burden onto our children and grandchildren. We are to blame. Where did this love of taxation come from?
Wisdom With Wealth News
Are we being fooled about money? In this short article, Tom talks about the three biggest money myths we are often led to believe, and why it’s dangerous to believe them.
1. You must have a lot of money to be a good money manager: FALSE.
How did the great money managers develop their skills? They all started small. Skill and amount differs like a pianist and a piano. Some say, “Just let me win the lottery and I’ll show you how good I am at managing money.” Dream on. Jesus said, “He who is faithful with little is also faithful with much,” (Luke 16:10). The skill of money management is more important and valuable than the money itself. God says in Proverbs 8:11, “Wisdom is better than jewels and all that you desire cannot compare with her.” Let me go on to say that good money skills usually attracts more money, but not always. The key is to focus on skill development, not on quantity.
Recently, I read an article in the Financial Post saying that some States in America (15 to be specific) are aggressively looking at establishing their own local currencies based on a gold standard. The Colorado Honest Money Act, the Vermont Dollars bill, and the Georgia Constitutional Tender Act among others exemplify the deep frustration with the massive printing of U.S. dollars during the past four years. Quoting from the Post: “Once the domain of crackpots and wingnuts, a growing number of Americans believe returning to the gold standard or bringing gold coins back into circulation, is the only way to restore sanity to the fiscal system that is out of control.” In Utah, a law went into effect in May making gold and silver coins legal tender and exempting the exchange of coins from income or sales tax liability.” Imagine that, the establishment of new local currencies. It makes me remember the Master’s words: “A kingdom divided against itself cannot stand,” Mark 3:24.
Something for nothing. We all want it, but where can we get it? Is it even realistic? Recently I read a quote from Mark Mobius, Executive Chairman of the Templeton Asset Management’s Emerging Markets Group, that another financial crisis is inevitable because causes of the previous one haven’t been resolved.
Mobius was addressing the Foreign Correspondent’s club of Japan in Tokyo in response to a question about price swings: “Are derivatives regulated? No. Are you still getting growth in derivatives? Yes.”
Recently the value of gold hit an all-time high of $1,556.33 US per ounce. That’s an increase of over 400% since I last wrote about precious metals (City Light News October 2003) when gold was $370. Why the huge jump?
In a nutshell, the financial confidence in the US dollar fell through the floor. Across the globe, but especially in the US, paper currency was being printed like monopoly money in an attempt to stimulate (aka quantitative easing, a banking euphemism) the economy which suffered its worst crash since the Great Depression of the 1930’s.