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need to know
All 10 S&P 500 sectors decline in August
Apple will let iPhone and iPad users block ads
J.C. Penney upgraded by Deutsche Bank
Wal-Mart cuts worker hours at some stores
5 silly new words in the Oxford dictionary

Personal beliefs don’t belong in retirement accounts

Unlucky lottery winner gets IOU from Illinois

Ode to that legendary New York steakhouse the Palm

When you absolutely, positively need a cocktail

Teacher with 111 tardies puts blame on breakfast

Automat concept is back — with a lot more quinoa

If Donald Trump can do it, why not Kanye West?

Scott Walker's backers seek a reboot of his campaign
Scott Walker’s backers seek reboot of campaign
Scott Walker wants a wall — with Canada

Dissatisfied voters are fueling Sanders and Trump
Clinton says she supports ‘revolving door’ bill
Biden a tougher matchup than Clinton: poll

Ruling in ‘Deflategate’ expected by end of this week
Greedy owners are NFL preseason winners

Disney to unveil ‘Star Wars’ toys in unboxing event
Walt Disney leads Dow's losers for August

How teen clothing retailers compete today

Sunday is Warren Buffett's 85th birthday
Happy 85th birthday to the $67 billion man


Why BlackBerry is a more attractive buyout target than Twitter
BlackBerry is a better buyout target than Twitter
Twitter's stock jumps after analyst upgrade

Our kids aren’t doomed to be poorer than we are

Now is the time to fix your investment portfolio
Now is the time to fix your investment portfolio
Both worry, be happy stocks aren’t a sure bet

Facebook users flood Mark Zuckerberg with thank you’s
Facebook users flood Mark Zuckerberg with thanks

‘War Room’ is a ‘resounding success’ at box office

By this measure, stocks have weathered the worst
By this measure, stocks have weathered the worst

Cheeseburgers and happiness always on the menu for Warren Buffett — and Jimmy Buffett, too
Farrell: Recipes for happiness, from Buffett and others

/conga/frontpage.html 353759

Markets »

141.44MDow Volume:
Avg Vol: 109.98M
Unchanged
217
Decliners
3378
Advancers
3004
Price Chg %Chg 1 Day
Range: 1 Day
  • 1 Day
  • 5 Days
  • 1 Month
  • 3 Months
  • 6 Months
  • 1 Year
  • 2 Years
Dow
/quotes/zigman/627449/realtime 16,528 -115 0.69%
Nasdaq
/quotes/zigman/12633936/realtime 4,777 -52 1.07%
S&P 500
/quotes/zigman/3870025/realtime 1,972 -17 0.84%
GlobalDow
/quotes/zigman/629063/realtime 2,354 -1 0.02%
Gold
/quotes/zigman/662444/delayed 1,140 +8 0.67%
Oil
/quotes/zigman/2331095/delayed 47.47 -1.73 3.52%
FTSE 100
/quotes/zigman/3173262/delayed 6,248 +56 0.90%
DAX
/quotes/zigman/2380246/delayed 10,259 -39 0.38%
CAC 40
/quotes/zigman/3173214/delayed 4,653 -22 0.47%
FTSE MIB
/quotes/zigman/1482176/delayed 21,942 -52 0.24%
IBEX 35
/quotes/zigman/2759620/delayed 10,259 -94 0.91%
Stoxx 600
/quotes/zigman/2380150/delayed 363 0 0.13%
Asia Dow
/quotes/zigman/6959860/realtime 2,759 -25 0.89%
Nikkei 225
/quotes/zigman/5986735/delayed 18,663 -228 1.21%
Hang Seng
/quotes/zigman/2622475/delayed 21,693 +22 0.10%
Shanghai
/quotes/zigman/1859015/delayed 3,158 -48 1.50%
Sensex
/quotes/zigman/1652085/delayed 26,283 -109 0.41%
Singapore
/quotes/zigman/1709939/delayed 2,924 +2 0.07%
Euro
/quotes/zigman/16008136/realtime/sampled 1.13 +0.00 0.38%
Yen
/quotes/zigman/16008150/realtime/sampled 120.89 -0.33 0.28%
Pound
/quotes/zigman/16008140/realtime/sampled 1.54 +0.00 0.24%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.71 0.00 0.03%
DXY Index
/quotes/zigman/1652083/delayed 95.68 -0.25 0.26%
WSJ $ Idx
/quotes/zigman/41508961/realtime 88.24 -0.20 0.22%
U.S. 10yr
/quotes/zigman/15866666/realtime 2.20 -0.02 0.84%
German 10y
/quotes/zigman/15866409/realtime 0.73 -0.01 1.33%
Italy 10yr
/quotes/zigman/15866497/realtime 1.92 +0.01 0.45%
Spain 10yr
/quotes/zigman/15866444/realtime 2.06 0.00 0.19%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.85 -0.02 0.96%
Japan 10yr
/quotes/zigman/15866525/realtime 0.39 +0.01 3.62%
Crude Oil
/quotes/zigman/2331095/delayed 47 -2 3.52%
Gold
/quotes/zigman/662444/delayed 1,140 +8 0.67%
Corn
/quotes/zigman/7599553/delayed 373 -3 0.73%
DJIA F
/quotes/zigman/38649152/delayed 16,288 -220 1.33%
S&P F
/quotes/zigman/30356461/delayed 1,941 -29 1.46%
Silver
/quotes/zigman/3134148/delayed 15 +0 0.47%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 89.43 -1.58 -1.74%
AAPL /quotes/zigman/68270/composite 112.76 -0.53 -0.47%
GOOG /quotes/zigman/30194416/composite 618.25 -12.13 -1.92%
BAC /quotes/zigman/190927/composite 16.34 -0.02 -0.12%
C /quotes/zigman/5065548/composite 53.48 0.20 0.38%
F /quotes/zigman/264304/composite 13.87 0.13 0.95%
T /quotes/zigman/398198/composite 33.20 -0.09 -0.27%
BP /quotes/zigman/247026/composite 33.54 0.28 0.84%
GE /quotes/zigman/227468/composite 24.82 -0.34 -1.35%
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Rates »

5 yr CD
1.5%
2 yr CD
0.8%
1 yr CD
0.6%
MMA $10K+
0.3%
MMA $50K+
0.4%

National averages from Bankrate.com

You Don’t Need Another Credit Card, You Need A Better One.
Avg. APR Last Week 6 Months
Low Interest 11.62% 11.62% 11.53%
Business 12.85% 12.85% 12.85%
Student 13.14% 13.14% 13.14%
Balance Transfer 14.12% 14.12% 14.00%
Airline 15.10% 15.10% 15.15%
Reward 15.14% 15.14% 14.99%
Cash Back 15.27% 15.27% 15.26%
Instant Approval 18.00% 18.00% 17.93%
Bad Credit 22.73% 22.73% 22.48%
Source:CreditCards.com

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Encore
A blog about living in and planning for retirement

Is Warren Buffett Confusing the Tax Debate?

Alicia Munnell, the director of the Center for Retirement Research at Boston College, is a weekly contributor to “Encore.”

Warren Buffett has been making the point whenever possible that he pays a smaller percent of his income to the federal government than his secretary. President Obama regularly incorporates the plight of Mr. Buffett and his secretary into his speeches. The problems with Mr. Buffett’s statement are twofold: 1) his tax situation is not representative of high-income people generally; and 2) he diverts attention from the larger picture that we Americans under-tax ourselves. In the view of most economists a well-designed tax system will have tax rates that rise with income. Under such a structure, high-income people pay not only higher taxes but also a higher percentage of their income in taxes. The rates in the Federal personal income tax currently range from 10 percent for incomes under $8,500 to 35 percent on incomes over $379,150. For the population as a whole, these progressive marginal rates appear to translate into a progressive overall tax burden.

Figure 1 shows for different quintiles of the income distribution the shares of income before taxes and shares of total taxes paid. In 2007, households in the top quintile earned a disproportionate share – 55% – of before-tax income, but these households paid almost 70% of total taxes. That is, they paid a disproportionately large share of total taxes. For all other quintiles, their share of total taxes was less than their share of total income. Now some might argue that the wealthiest should have paid even more, but that concern seems secondary to the fact that the overall tax system is moderately progressive. Presumably, Warren Buffett pays a low rate because he receives a large share of his income in long-term capital gains and other forms of non-wage income, where maximum tax rates are at an all-time low.

The real problem with our tax system is not the distribution of burden, but the fact that our total local, state, and federal taxes amount to such a small share of our Gross Domestic Product (GDP). As Figure 2 below, from the Organisation for Economic Co-operation and Development (OECD) shows, 2008 taxes amounted to only 26.9 percent of GDP in the United States. The average for all OECD countries was 35.8 percent. The only OECD countries with a lower national tax rate were Korea, Turkey, and Mexico.

The implications of our low national tax rate are profound. Proposals abound to cut back on “entitlements” – Social Security and Medicare – and to scuttle the safety net for our vulnerable populations. Unfortunately, in this context, the conversation about Mr. Buffett and his secretary is a diverting side show.

Comments

We welcome thoughtful comments from readers. Please comply with our guidelines. Our blogs do not require the use of your real name.

Comments (4 of 4)

View all Comments »
    • Peaktrader,I acknowledge that there are qtilauy differences, but conventional PPP measures are supposed to adjust for both price and qtilauy.Perhaps the IMF measure of 4.5x Japan/China difference is slightly off. But my question was, What data sources claims the difference is “over ten times greater”? This would be a huge error on the part of IMF and other similar sources.

    • Taxpayers:Here are people are gitetng wages and lifetime pensions and medical benefits at your expense, sometimes after just 20 years of service. Department of Defense 3,000,000Veterans Affairs 275,000Homeland Security 250,000Treasury 115,000Justice 112,000Energy 109,000USDA 109,000Interior 71,000Labor 17,000HUD 10,000Education 4,487

    • 4. 6 monhts in Europe (Greece) and 6 monhts in the U.S. – plan to leave California for good and live a nomad life in the U.S. once the kids are out of the house – renting/living in different cities in the U.S. with my primary home in Greece.———————————spent a month in Greece this past summer,(know the country very well well & have inherited a home there). Upon returning to USA spent a couple of weeks in NYC area and realized how everything was so much cheaper that in Greece! ..and I’m talking NY metro area prices too!…the further west I traveled, the US seemed like a bargain.Point: Greece has been savaged by the euro and is more expensive than Northern EU countries in many categories, if not all, if you figure in the value proposition in goods and services. Another major shortcoming is the horrendous health care system that an older retiree might be dependent on.From a purely financial angle in today’s world, USA is one of top retirement choices.

    • So we really need to raise everyone’s taxes, because the good folks employed by the government certainly know what to do with our money far better than we mere plain folks do. What an elitist attitude.

About Encore

  • Encore examines the changing nature of retirement, from new rules and guidelines for financial security to the shifting identities and priorities of today’s retirees. The blog also explores news that affects retirement, from the Wall Street Journal Digital Network and around the web. Lead bloggers are reporter Catey Hill and senior editor Jeremy Olshan. Other contributors include The Wall Street Journal’s retirement columnists Glenn Ruffenach and Anne Tergesen; the Director for the Center for Retirement Research at Boston College, Alicia Munnell; and the Director of Research for Pinnacle Advisory Group, Michael Kitces, CFP.

MarketWatch - Stock Market Quotes, Business News, Financial News
Bulletin
Investor Alert

Tokyo Markets Close in:

need to know
All 10 S&P 500 sectors decline in August
Apple will let iPhone and iPad users block ads
J.C. Penney upgraded by Deutsche Bank
Wal-Mart cuts worker hours at some stores
5 silly new words in the Oxford dictionary

Personal beliefs don’t belong in retirement accounts

Unlucky lottery winner gets IOU from Illinois

Ode to that legendary New York steakhouse the Palm

When you absolutely, positively need a cocktail

Teacher with 111 tardies puts blame on breakfast

Automat concept is back — with a lot more quinoa

If Donald Trump can do it, why not Kanye West?

Scott Walker's backers seek a reboot of his campaign
Scott Walker’s backers seek reboot of campaign
Scott Walker wants a wall — with Canada

Dissatisfied voters are fueling Sanders and Trump
Clinton says she supports ‘revolving door’ bill
Biden a tougher matchup than Clinton: poll

Ruling in ‘Deflategate’ expected by end of this week
Greedy owners are NFL preseason winners

Disney to unveil ‘Star Wars’ toys in unboxing event
Walt Disney leads Dow's losers for August

How teen clothing retailers compete today

Sunday is Warren Buffett's 85th birthday
Happy 85th birthday to the $67 billion man


Why BlackBerry is a more attractive buyout target than Twitter
BlackBerry is a better buyout target than Twitter
Twitter's stock jumps after analyst upgrade

Our kids aren’t doomed to be poorer than we are

Now is the time to fix your investment portfolio
Now is the time to fix your investment portfolio
Both worry, be happy stocks aren’t a sure bet

Facebook users flood Mark Zuckerberg with thank you’s
Facebook users flood Mark Zuckerberg with thanks

‘War Room’ is a ‘resounding success’ at box office

By this measure, stocks have weathered the worst
By this measure, stocks have weathered the worst

Cheeseburgers and happiness always on the menu for Warren Buffett — and Jimmy Buffett, too
Farrell: Recipes for happiness, from Buffett and others

/conga/frontpage.html 353759

Markets »

141.44MDow Volume:
Avg Vol: 109.98M
Unchanged
217
Decliners
3378
Advancers
3004
Price Chg %Chg 1 Day
Range: 1 Day
  • 1 Day
  • 5 Days
  • 1 Month
  • 3 Months
  • 6 Months
  • 1 Year
  • 2 Years
Dow
/quotes/zigman/627449/realtime 16,528 -115 0.69%
Nasdaq
/quotes/zigman/12633936/realtime 4,777 -52 1.07%
S&P 500
/quotes/zigman/3870025/realtime 1,972 -17 0.84%
GlobalDow
/quotes/zigman/629063/realtime 2,354 -1 0.02%
Gold
/quotes/zigman/662444/delayed 1,140 +8 0.67%
Oil
/quotes/zigman/2331095/delayed 47.47 -1.73 3.52%
FTSE 100
/quotes/zigman/3173262/delayed 6,248 +56 0.90%
DAX
/quotes/zigman/2380246/delayed 10,259 -39 0.38%
CAC 40
/quotes/zigman/3173214/delayed 4,653 -22 0.47%
FTSE MIB
/quotes/zigman/1482176/delayed 21,942 -52 0.24%
IBEX 35
/quotes/zigman/2759620/delayed 10,259 -94 0.91%
Stoxx 600
/quotes/zigman/2380150/delayed 363 0 0.13%
Asia Dow
/quotes/zigman/6959860/realtime 2,759 -25 0.89%
Nikkei 225
/quotes/zigman/5986735/delayed 18,664 -226 1.20%
Hang Seng
/quotes/zigman/2622475/delayed 21,693 +22 0.10%
Shanghai
/quotes/zigman/1859015/delayed 3,158 -48 1.50%
Sensex
/quotes/zigman/1652085/delayed 26,283 -109 0.41%
Singapore
/quotes/zigman/1709939/delayed 2,923 +2 0.06%
Euro
/quotes/zigman/16008136/realtime/sampled 1.13 +0.00 0.39%
Yen
/quotes/zigman/16008150/realtime/sampled 120.88 -0.35 0.29%
Pound
/quotes/zigman/16008140/realtime/sampled 1.54 +0.00 0.25%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.71 0.00 0.03%
DXY Index
/quotes/zigman/1652083/delayed 95.68 -0.25 0.26%
WSJ $ Idx
/quotes/zigman/41508961/realtime 88.23 -0.20 0.23%
U.S. 10yr
/quotes/zigman/15866666/realtime 2.20 -0.02 0.84%
German 10y
/quotes/zigman/15866409/realtime 0.73 -0.01 1.33%
Italy 10yr
/quotes/zigman/15866497/realtime 1.92 +0.01 0.45%
Spain 10yr
/quotes/zigman/15866444/realtime 2.06 0.00 0.19%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.85 -0.02 0.96%
Japan 10yr
/quotes/zigman/15866525/realtime 0.39 +0.01 3.62%
Crude Oil
/quotes/zigman/2331095/delayed 47 -2 3.52%
Gold
/quotes/zigman/662444/delayed 1,140 +8 0.67%
Corn
/quotes/zigman/7599553/delayed 373 -3 0.73%
DJIA F
/quotes/zigman/38649152/delayed 16,290 -218 1.32%
S&P F
/quotes/zigman/30356461/delayed 1,941 -29 1.46%
Silver
/quotes/zigman/3134148/delayed 15 +0 0.47%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 89.43 -1.58 -1.74%
AAPL /quotes/zigman/68270/composite 112.76 -0.53 -0.47%
GOOG /quotes/zigman/30194416/composite 618.25 -12.13 -1.92%
BAC /quotes/zigman/190927/composite 16.34 -0.02 -0.12%
C /quotes/zigman/5065548/composite 53.48 0.20 0.38%
F /quotes/zigman/264304/composite 13.87 0.13 0.95%
T /quotes/zigman/398198/composite 33.20 -0.09 -0.27%
BP /quotes/zigman/247026/composite 33.54 0.28 0.84%
GE /quotes/zigman/227468/composite 24.82 -0.34 -1.35%
Visit the quote page and your most recently viewed stocks will automatically be displayed here.
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MarketWatch Portfolio

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Rates »

5 yr CD
1.5%
2 yr CD
0.8%
1 yr CD
0.6%
MMA $10K+
0.3%
MMA $50K+
0.4%

National averages from Bankrate.com

You Don’t Need Another Credit Card, You Need A Better One.
Avg. APR Last Week 6 Months
Low Interest 11.62% 11.62% 11.53%
Business 12.85% 12.85% 12.85%
Student 13.14% 13.14% 13.14%
Balance Transfer 14.12% 14.12% 14.00%
Airline 15.10% 15.10% 15.15%
Reward 15.14% 15.14% 14.99%
Cash Back 15.27% 15.27% 15.26%
Instant Approval 18.00% 18.00% 17.93%
Bad Credit 22.73% 22.73% 22.48%
Source:CreditCards.com

SPONSORED SECTIONS

Trending Tickers
  • /quotes/zigman/8669138/composite DWTI-22.19%
  • /quotes/zigman/88601/composite WYNN-4.03%
  • /quotes/zigman/12221594/composite AMBA-0.71%
  • /quotes/zigman/413712/composite USO+6.79%
  • /quotes/zigman/83890/composite MDCO+21.88%
X
Powered by StockTwits
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As of July 2, 2013, the SmartMoney content you loved now lives on MarketWatch.

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