Oxfam on Covid inequality, tax wealthy to pay for vaccines, defend local weather

A pedestrian wearing a face mask delivers food to a homeless man who died on March 23.

Tolga Akmen | AFP | Getty Images

The pandemic has made the rich richer while the income of the rest of the world – about 99% of humanity – has plummeted, according to a new Oxfam report titled “Inequality Kills”.

The wealth of the world’s 10 richest men has doubled from $700 billion to $1.5 trillion during the pandemic, according to the global charity said on Monday.

“It has never been more important to right the violent injustices of this obscene inequality by reclaiming the power and extreme wealth of the elites, including through taxes – to put that money back into the real economy and save lives,” Gabriela said , Executive Director of Oxfam International Bucher.

A 99% windfall tax on the pandemic profits of the world’s 10 richest men would raise enough money to pay for vaccines for the world — and fund various social measures for more than 80 countries, the report said.

Billionaire wealth has risen more sharply since the start of Covid compared to the past 14 years, and a new billionaire has been minted every 26 hours since the pandemic began, Oxfam said.

The CEOs of the Covid vaccine developers Modern and BioNTech earned billions in 2020 as a result of the pandemic.

At the same time, the vast majority of the population is worse off after losing income during Covid-19, and 160 million more people fell into poverty, the press release said.

windfall tax

One way to “recoup” the huge gains billionaires made during the crisis is to tax the money billionaires have made since the pandemic began, the report said.

“A one-time windfall tax of 99% on the wealth gains from Covid-19 for the 10 richest men alone would generate $812 billion,” the report said.

“These resources could be enough to produce enough vaccines for the entire world and to fill funding gaps in climate action, universal health and social protection, and efforts to combat gender-based violence in over 80 countries,” it said.

If these ten men lost 99.999 percent of their wealth tomorrow, they would still be richer than 99 percent of everyone on the planet.

Gabriella books

Managing Director, Oxfam International

Even after taxes, the world’s 10 richest men would still be billionaires and, as a group, have increased their wealth by $8 billion since the pandemic began, the report said.

“If these ten men lost 99.999 percent of their wealth tomorrow, they would still be richer than 99 percent of all people on this planet,” said Bucher.

Beyond a one-time windfall tax, governments must also introduce or increase permanent wealth and capital taxes to “fundamentally and radically reduce wealth inequality,” the report says.

The Oxfam report was released ahead of this week’s virtual meetings of the World Economic Forum, where world leaders will discuss global challenges.

Home capital positive aspects tax higher for the tremendous wealthy than Biden plan

NICHOLAS COMB | AFP | Getty Images

The super-rich could cheer the Democrats’ proposed tax reforms on investment income versus the Biden government’s earlier plan.

The White House asked for a top tax rate of 39.6% on long-term capital gains and dividends – almost double the current 20%.

Long-term capital gains tax applies to assets such as stocks and homes that have grown in value and have been owned for at least a year; Taxpayers owe money to increase in value when they sell an asset. A dividend tax applies to profit distributions that companies make to their shareholders.

Biden’s policies would only apply to the richest Americans – the top 0.3% or those with incomes of $ 1 million or more. It would be among the highest rates for capital gains and dividends in the developed world.

But House Way and Means Committee legislation unveiled Monday would tax capital gains and dividends at a much lower top rate of 25%. The House of Representatives proposal would apply to single parents with an income of at least $ 400,000 and married couples to $ 450,000.

Put another way, Biden’s plan would have increased the highest federal tax rate for the richest Americans by 98% (compared to current law), while the House of Representatives proposal would have increased it by 25%. The House of Representatives plan would also raise taxes for a wider segment of the population.

“This change is AWESOME for the super-rich,” wrote Jeffrey Levine, an accountant and certified financial planner who serves as the chief planning officer at Buckingham Wealth Partners, in a tweet.

“But for the ‘just’ wealthy taxpayer? Not so much,” he added.

An existing Medicare surcharge of 3.8% and government taxes would come to any change in the federal rate.

Investment income

Compared to low and middle earners, the wealthy generate more income from investments than from wages.

For example, the top 0.1% who earn $ 3.4 million or more get more than half of their annual income from capital gains, dividends, and interest; a quarter comes from wages and benefits, according to a tax policy center analysis from 2019.

More from Personal Finance:
Mega Millions and Powerball jackpots are now over $ 400 million
The Democrats in the House of Representatives promise “sensible” relief for the upper limit for the SALT deduction
You don’t have to be Britney Spears to get married

For comparison: According to the analysis, wages and social benefits make up around 60 to 70% of annual income for taxpayers outside the richest 1%.

“[The House proposal] is obviously not as punitive in their view as the original proposals, “said James Hines Jr., economics professor and research director for the University of Michigan Office of Tax Policy Research, of the rich.

Of course, wealthy Americans do not cheer for any of the proposals; They would probably prefer their tax rate not to be increased at all, Hines said.

Capital gains in the event of death

The plans also differ in how they would tax inheritances that have greatly appreciated in value.

Biden’s plan would be tax the increase in the value of an asset at the death of its owner. This is to prevent the super-rich from constantly passing on stocks and other financial assets to the next generation for little or no tax.

(Capital gains less than $ 1 million for single parents and $ 2.5 million for married couples would be excluded.)

The house plan preserves the status quowho does not collect this tax on death. Applicable law also allows heirs to receive an asset at its current value, which erases the paper profit and thereby dilutes their future tax bill when they sell.

The richest families receive the largest inheritances – an average of $ 719,000 at the time of inheritance. according to to the Federal Reserve’s Survey of Consumer Finances. (The average for all Americans is $ 46,000.)

The inheritances are not necessarily due to capital gains. But a significant portion of the economic gains made by the richest Americans come from unrealized capital gains, according to the Federal Reserve. About 41% of the top 1% have an unrealized capital gain.

Of course, the final legislation could ultimately change from both House and Biden proposals as Democrats try to raise up to $ 3.5 trillion in funding for education, healthcare, childcare, climate, paid vacation, and other measures collect.

“We’re in the second or third inning now,” said Leon LaBrecque, accountant and certified financial planner with Sequoia Financial Group.

India’s wealthy should not the one ones fleeing Covid disaster

Tycoons and Bollywood stars are possibly some of the most famous residents who flee the Indian coast by private jets Coronavirus crisis escalates – but they are by no means the only ones, according to private jet charter company JetSetGo.

The situation in India has gotten so dire that even upper-middle class families are pooling their resources to escape, co-founder and CEO Kanika Tekriwal told CNBCs “Road signs Asia. “

The South Asian country battling a devastating surge in the virus, recorded 412,262 new cases on ThursdayThe total number of cases is more than 28 million.

“To say that only wealthy Indians leave India on private jets would be wrong,” said Tekriwal of the Maldives on Thursday.

“What we’ve really seen in the past 10 days is anyone who can put together the resources and funds to raise money for a private jet or to raise money just to get out of the country and get off.”

It’s just people raising money to leave the country. I think they are the ones who fear Covid the most.

Kanika Tekriwal

Co-founder and CEO of JetSetGo

Tekriwal said JetSetGo has seen bookings grow by 900% in the past few weeks – with roughly 70% to 80% coming from the upper-middle class rather than their regular, very wealthy customers. Most of them are fleeing to the Maldives, which are currently offering quarantine in a remote resort for passengers from India, or to Dubai, where entry is possible for business reasons.

“They are just people raising money to get out of the country. I think they fear Covid the most because they are not particularly rich or the most accessible to medical care,” she said.

During a weekly market in Kandivali you can see crowds shopping.

SOPA pictures | LightRocket | Getty Images

JetSetGo hasn’t increased its rates to respond to rising demand, Tekriwal said, adding, “That would be opportunistic and wrong.”

But at $ 18,000 to $ 20,000 for an eight-seat jet to Maldives or $ 31,000 for a six-seat jet to Dubai, the trip isn’t cheap – even for India’s upper-middle class who earns around $ 15,000 plus per year.

However, Tekriwal said the situation was so out of control that in some cases the price of a private jet flight could be below hospital fees.

Most of my clients have told me that: “We can spend six months’ salary or our savings on fleeing the country.”

Kanika Tekriwal

Co-founder and CEO of JetSetGo

The hospital stay costs about $ 2,500 a night, she said. “It’s what hospital rooms are aimed at. Even if you have two family members in the hospital for 14 days, you’ll see double the price of a flight to Dubai.”

“This is what most of my clients have told me: ‘We are okay with spending six months’ salary or savings on fleeing the country instead of being in half a hospital bed not knowing how much we’re going to make or when we’re going to pay get a hospital bed at all.“”

Tekriwal added that passengers who test positive for Covid-19 will not be accepted on their regular flights. However, the company offers a separate national and international air ambulance service.

However, a private jet does not guarantee an escape from the virus.

Despite enforcing new security measures since last March – including mandatory testing, regular disinfection of aircraft, and no interaction between passengers and crew – Tekriwal said 30% of its employees have continued to test positive for the virus.

“What hurts me the most is that these teams come in, come out and work with people to get them safely from point A to point B. And when they test positive, they bring the virus home to their families. To theirs young children and their parents, which is pretty worrying, “she said.

You will not get wealthy simply by saving cash. You need to make investments.

Perhaps your goal is to retire with $ 1 million. Or maybe you want to reach that milestone much sooner – around the age of 40 or 45.

It’s no secret that to accumulate wealth you need to spend less than you make and pay the difference. But saving money is not enough. You also need to wager your money by investing it. And here are a few clever ways to do it.

1. Charge index funds

Index funds are passively managed funds that track different market indices. A S&P 500 index fundsThe goal is, for example, to achieve the same performance as the S&P 500 itself.

This is America:Make the most of your taxes (we look at you, Gen Z)

Investment issues:How to start in 6 steps

Index funds are a great choice for wealth building because you can take advantage of broad market returns without taking the time to research stocks one by one. They also offer the protection that comes with having a diverse portfolio.

2. Invest in dividend stocks

Dividend stocks can be an important tool on the path to wealth building. In addition to having the potential to grow in value over time, dividend stocks, as the name suggests, share wealth through quarterly payments that you can then reinvest.

3. Look at real estate

Investing in physical traits is not for the faint of heart, but if you want to get rich it is a smart thing to consider. An income property could function very similarly to dividend stocks in that you have the potential for that asset itself to grow in value over time. In the meantime, however, you will receive regular payments (rent in this case), which you will then have the opportunity to invest again.

If the idea of ​​owning real estate doesn’t suit you well, there is another option to invest in real estate – buying REITs or real estate investment trusts. The great thing about REITs is that they are set up to pay dividends out of the income they generate. So, like income traits, they can be an ongoing source of money. Also, REITs tend to follow their own pattern, so during times of general volatility in the stock markets, they are not necessarily affected (although this is not always the case). In other words, when you build a portfolio of stocks and REITs, you’re buying built-in protection against market dips by using this diverse mix.

4. Put some money in bonds

When you are quite young, your main focus should be on lucrative investments such as stocks and real estate that carry some degree of risk. But it wouldn’t hurt to invest a small part of your money in bonds that have some risk, but less. Like dividend stocks and REITs, bonds are a great way to secure a steady stream of income through semi-annual interest payments. That’s even more money to reinvest.

Saving money is clearly an important step on the way to increasing prosperity, but it is not enough. You must also make a commitment to investing steadily if you want to get rich in your life. But as you can see, there are numerous ways you can do this. The sooner you start, the faster you will achieve your goal.

The motley fool has one Confidentiality Policy.

The Motley Fool is a USA TODAY content partner providing financial news, analysis, and commentary to help people take control of their financial lives. Its content is TODAY produced independently of the USA.

Offer from the Motley Fool:We like 10 stocks better than Walmart

When investment geniuses like David and Tom Gardner have an investment tip, it can be worth listening to. After all, the Motley Fool Stock Advisor newsletter, which has been running for over a decade, tripled the market. *

David and Tom have just revealed what they think they are ten best stocks for investors to buy now … and Walmart wasn’t one of them! That’s right – they think these 10 stocks are even better buys.

See the 10 stocks

The stock advisor will return on 02/01/2020

COMMENTARY: Throwing cash at wealthy | Opinion

Second, it’s a marketplace with government-subsidized demand (through the guaranteed loans) and limited supply – making tuition fees unnecessarily high. In essence, all of this boils down to college being more expensive than it should be and many places that offer a worthless product survive.

Many of the people who are in student debt from worthless degrees didn’t know what they were getting into. It is not inappropriate to view this as a fraud. It is not inappropriate to provide material support to these people as we could materially support the victims of another scam.

But we should focus our political energy on stopping the fraud company as a whole. If we only pay off the scammers, then it’s only worthwhile for scammers to set up a business. Because of this, any bona fide effort to combat the higher education problem must take into account the government incentives for bad schools to keep selling worthless degrees.

Non-targeted student loan forgiveness would do nothing to address the poor graduate incentives. This alone would make these incentives worse. So, untargeted forgiveness would at best be a mere transfer of wealth. And despite the way boosters talk about it, it would be a wealth transfer that would go mostly to the highest earning people in the country.

Economists Sylvain Catherine and Constantine Yannelis have estimated that in untargeted universal forgiveness plans, half of the wealth transferred would go to people in the top 30 percent of the income distribution. Even untargeted lending of as little as $ 10,000 would result in a carryover that goes mostly to above average earners. Instead of going to the people who have been betrayed by bad schools, this would mostly just be a payoff for the rich.

Overlook AMC Leisure: These Shares Will Make You Wealthy

In the past two months, Wall Street has seen a new phenomenon: the Reddit frenzy.

Retail investors in Reddit’s WallStreetBets (WSB) chatroom have essentially banded together to buy and stock shares Out-of-the-money call options on stocks with high short interest. The goal of the WSB community is to create a short squeeze that will skyrocket sharply shortened stocks. With the vast majority of short sellers being institutional investors and hedge funds, these retail investors see their actions as a way to get back to what they call “big bucks”.

Image source: Getty Images.

AMC is an extremely popular (and incredibly dangerous) investment

Even though GameStop is the undisputed king of all Reddit stocks, cinema chain AMC Entertainment Holdings ((NYSE: AMC) easily ranked second most popular. AMC was one of the least-selling stocks in the market in late January, and the penny stock price was voracious bait for young investors.

Beyond the Reddit frenzy, optimists are also encouraged by the reopening of the U.S. economy. New York City and Los Angeles cinemas are reopening, and 21% of the US population have received at least one dose of a coronavirus vaccine. A return to normal seems on the horizon and investors are banking heavily on AMC to capitalize on this pent-up demand.

Unfortunately, the “buy AMC” thesis is is flawed. The reopening catalyst assumes there will be no setbacks in the major markets, which is unlikely. It’s not yet clear whether enough Americans will receive the vaccine, suggesting that herd immunity could be pushed further. Coronavirus variants also threaten to reduce the effectiveness of vaccines approved for emergency use.

AMC is even more worrying just avoided filing for bankruptcy earlier this year. It was forced to sell nearly 165 million shares and spent more than $ 400 million in debt to step down from the bankruptcy bar. Unless capacity limits in key markets relax anytime soon, I’m not sure if AMC has enough capital to survive the year – especially if there are pandemic setbacks.

Worst of all, however, AMC’s core operating model is now threatened. With consumers stuck in their homes for about a year, select streaming services have become competitors. AT & T. Subsidiary is WarnerMedia All of his films will be released on HBO Max in 2021 They’ll be in theaters the same day. Walt Disney plans to do something similar with a few movies on its Disney + streaming platform.

Forget AMC, these innovative stocks can make you rich

The point is, AMC is a dangerous investment that can make people lose a lot of money. Rather than buying a company that is hanging by a thread, I encourage you to buy the following three game-changing stocks, each of which has the tools to make you rich.

A key in a lock surrounded by dozens of alphanumeric codes.

Image source: Getty Images.

Ping identity

Although there are a number of trends in this decade that offer double-digit growth potential, Cybersecurity could be the safest. As more and more companies push online and move their data (and that of their customers) to the cloud, the responsibility for protecting this data will increasingly lie with third parties. That’s where Ping Identity Holding ((NYSE: PING) come in.

While most security companies excelled during the pandemic, identity verification specialist is Ping Identity struggled a bit. Full year sales were largely unchanged, with a number of customers opting for one-year subscriptions instead of multi-year plans. However, there are many reasons to believe that this weakness is pandemic-related and temporary.

Although total revenue was flat, the company’s focus on subscription services helped increase annual recurring revenue (ARR) by 15% to $ 259.1 million. Ping ended the year with 51 customers generating ARR greater than $ 1 million, up from 38 customers at the end of 2019. The company clearly has the ability to expand its services with larger customers and touts its services protecting 60% of Fortune 100 companies.

Additionally, 92% of fourth quarter revenue came from subscriptions, and the gross subscription margin was 86% for that quarter of 2020. For example, even if ARR growth came in at 15% next half-decade, it would be pretty hard to overlook the cash flow potential with the company’s subscriptions generating 86% gross margin.

Ping identity is also very inexpensive. While most cybersecurity stocks are valued at 20 times sales or higher, Ping can be topped up for 7 times projected sales in 2021. This is possibly the best value among cybersecurity stocks.

A clear jar full of cannabis buds placed on top of a fanned-out stack of $ 20 bills.

Image source: Getty Images.

Cresco Labs

Marijuana stocks should be big winners throughout the decade, regardless of what happens to the classification of cannabis in Washington. The US multistate operator (MSO) operates in the world’s most lucrative market. Cresco Labs ((OTC: CRLBF) has the potential to make investors rich.

As with most MSOs, Cresco’s success will depend to some extent on its presence in retail. The company started the year with just 20 pharmacies open but relied on acquisitions to expand. The signing of the green creations contract maximized its presence in Ohio during the upcoming deal Bluma Wellness The buyout gives the company a healthy presence in medical-marijuana-legal Florida.

The interesting thing about Cresco Labs, however, is that there is a game plan for retailers mainly revolves around limited license states. In particular, over 60% of open locations are in states where regulatory authorities limit the number of retail licenses. Penetrating states with caps on pharmacy licenses is a smart way for Cresco to build its brand while facing minimal competition.

The major growth driver for the company is likely to be wholesale. Although wholesale cannabis offers lower margins than retail, Cresco has more than enough volume to overlook margin differences. This is because the company holds one of the most coveted cannabis distribution licenses in California, allowing the company to place proprietary and third-party products in more than 575 pharmacies across the Golden State.

With Cresco’s forecast growth outperforming many of its peers, it has a good chance of putting some serious green in its shareholders’ pockets.

A monitor that shows a patient's vital signs in an operating room.

Image source: Getty Images.

Intuitive surgery

Finally, investors should forget all about AMC and Entertainment Buy yourself into a real game changer in the health sector, Intuitive surgery ((NASDAQ: ISRG).

Intuitive Surgical is best known for its da Vinci robotic surgical system that enables surgeons to make precise cuts that can reduce scarring and shorten hospital stays. For insurers, this can result in higher up-front costs but reduce longer hospital stays, which can prove to be even more costly.

The da Vinci system is the undisputed leader in robot-assisted surgery. Intuitive has installed almost 6,000 of its machines worldwide since 2000, more than all of the company’s competitors put together. The company has been able to build priceless relationships with surgeons in hospitals and surgical centers very unlikely that we’ll see his customers switch to a competing system.

But it’s not just the company’s overwhelming competitive advantage that makes it such an attractive stock. Its operating model is Designed to be more efficient over time. As more da Vinci systems are installed, a higher percentage of sales will come from segments with juicier margins, such as: B. Instruments and accessories sold with each procedure, as well as from system maintenance.

Intuitive Surgical is just beginning to capitalize on its opportunity with its innovative soft tissue surgical solutions. Expect the da Vinci to gain significant market share in thoracic, colorectal, and general soft tissue procedures over the decade.

This article represents the opinion of the author who may disagree with the “official” referral position of a Motley Fool Premium Consulting Service. We are colorful! Questioning an investment thesis – including one of our own – helps us all think critically about investing and make decisions that will help us get smarter, happier, and richer.

New Examine Exhibits That Extra Cash Buys Extra Happiness, Even For Wealthy

A new study suggests that money can buy happiness

getty

The Beatles famously sang about how money can’t buy love, and since a 2010 newspaper, people have been calmed down a bit by research that showed that people above a certain income were happy to be on a plateau regardless of what they earned .

However, new research disproves this fact and suggests that happiness continues to increase in line with higher salaries. Perhaps money then cannot buy love, but it could still buy happiness for the wealthy.

2010 study: Money doesn’t buy happiness after $ 75,000

In 2010 the psychologist Daniel Kahneman and the economist Angus Deaton (both won the Nobel Prize in Economics) undertook research to determine whether money played a role in two aspects of people’s emotional lives. First, the everyday quality of daily life, the joy, stress, sadness, anger, and affection that make life comfortable or uncomfortable. Second, life evaluation – the thoughts people have when thinking about their life.

The study found that money has an impact on how people rate their lives when they think about it. that people with more money feel better about their lives. However, as expected, emotional well-being increased with income, but only to an annual salary of $ 75,000 ($ 90,000 in today’s money). In addition, people with higher salaries were no happier. The landmark study concluded that “a low income is associated with both low life evaluation and low emotional well-being”, ironically, “high income means life satisfaction but not happiness”.

2021 Study: Money Improves Wellbeing, Even After $ 80,000

Matthew Killingsworth is now a Senior Fellow at the University of Pennsylvania’s Wharton School and has a long history of pursuing happiness – he even developed a tool for it. Track your luck is an application that examines what makes life worth living. Killingsworth developed the app, according to BloombergAround the same time that Kahneman and Deaton were doing the research for the 2010 study.

The idea is that you tell the app what you are feeling in several places a month, thus contributing to Killingsworth’s scientific experiment, but also helping the user figure out what factors are associated with their greater happiness. As the app says, the world’s greatest thinkers have always agreed that happiness is a central goal in life, but “huge improvements in human life – bigger homes, more powerful technology, better medical care – have made only modest improvements in happiness.”

The The conclusion on Killingsworth’s research has just been published in Proceedings of the National Academy of Sciences. By tracking reported happiness in relation to reported income, the study found that – as with the 2010 study – both life satisfaction and experienced wellbeing increased with income. In contrast to the 2010 study, however, wellbeing rose as much beyond an annual income of $ 80,000 as it was below. The conclusion is therefore: “Higher incomes may still improve people’s daily well-being, instead of having already reached a plateau for many people in rich countries.”

Killingsworth’s research examined 1,725,994 experiences of 33,391 US adults employed with its use. In 2019, the median household income in the United States was $ 68,703 and the median household income for Killingsworth’s poll was $ 85,000.