Keeping The Rich White Man Down!

tax-moneyDid you know that certain private equity firms and hedge funds only have to pay 15% on their capital gains? Shouldn’t firms like Blackstone and Fortress Investment Group have to pay 35% like every other law abiding corporation? I think so and so does the government.

Congress is currently considering a bill that would close these loopholes and potentially increase tax revenue by $4 to $6 billion. Currently, private equity firms like Blackstone and Fortress can be organized as partnerships and thus subject to the 15% tax. The new bill would remove this privelage and bump their tax rate up to 35%. Of course, Blackstone is crying all the way to the bank citing that, “the Senate bill, which would effectively raise its tax rate to as much as 35% from 15%, would hurt profitability.”

I, for one, think duh it should hurt your profitability. That 20% should be going to the rest of us as a “tax” on allowing your company to grow and prosper because of the opportunities it has been given by the United States. It shouldn’t be going to pay that multi billion dollar reward to your boss.

What’s happenin’?

Here are a few stories that I thought were interesting and might be helpful to many of you out there.

  • Jim at Blueprint for Financial prosperity put up a nice summary of his Devil’s Advocate posts. Some of them are pretty interesting takes on common issues.
  • Clever Dude has some questions about the costs of adoption and whether it is worth it.
  • Flexo over at Consumerism Commentary had a reader ask whether or not clothes should be included in their net-worth.
  • Five Cent Nickel gives you five reasons you should care about your FICO credit score.
  • Free Money Finance gives some tips to those wondering when they should take their Social Security payments in retirement.
  • Jeremy at Generation X Finance gives some good advice about knowing how your credit cards charge their interest, it’s definitely worth checking out.
  • J.D. at Get Rich Slowly had a conversation with her friend about budgeting, J.D. and I both agree, there are some people you can never help.
  • Lazy Man at Lazy Man and Money has a contest going for a $200 grand prize, check it out!
  • Mapgirl at Mapgirl’s Fiscal Challenge gives some reasons why you need a personal finance software.
  • Might Bargain Hunter contends that shutting off the radio will save you gas. I’m not so sure I’d be willing to be that frugal.
  • Money, Matter, and Musings gives some other reasons why you should be frugal.
  • My Money Blog gives some tips about lending money on Prosper.
  • David at My Two Dollars gives some tips for people about to lose their home.
  • No Credit Needed gives his take on the baby steps approach to personal finance and how it’s sometimes better to crawl.
  • The Digerati Life details how your credit score can affect your loan rates.
  • Trent at The Simple Dollar gives his musings about snowballing your debt.

Sex Up Your Finances

I apologize for the lack of updates recently, it isn’t easy looking for a new job.

Over the course of the next few days, I’ll be writing a series of articles about some basic personal finance topics and one advanced topic as well. I hope to cover the topics and explain it easily enough so that you can understand and implement some strategies of your own. I hope to include:

  • Making a budget
  • Understanding cash flow statements
  • Understanding how to calculate net worth
  • Allocating your assets in your investment accounts to meet your goals

I may add more topics as time goes on. I’m going to start with these topics first because these are the foundation of sexing up your personal finances (asset allocation is a little more advanced, but I think it is something you should know).