Thursday, March 14, 2019

Taxing Robots

When I was growing, people were paid to do repetitive routine tasks.   The workers paid taxes.  Nowadays, robots do some of these tasks, in much less time.  The robots don't pay taxes.  The is a two fold problem, less people making money and less income taxes being paid.

Here's my trial solution:

  • Tax all robo calls at $.01 per call initiated.
  • At 4 robo calls per phone/day, 300 million phones, 365 days a year, $4.38 billiion in taxes would be collected per year.  At a $.10 tax per call, that would be $43.8 billioin in taxes per year.
  • Tax revenue may go down due to reduced number of robo calls.  But that is a benefit also
This would be a prototype solution for how to tax other robots in an effective, and efficient manner and compensate for the reduction in workforce.

For more on Crossing Generations, check back Thursdays for a new segment.

This is not financial, tax or work advice. Please consult a professional advisor.

Copyright © 2019 Achievement Catalyst, LLC

Sunday, March 03, 2019

What if Stock Market Gains of January and February Continue?

The S&P has returned an average of 6% each month for January and February 2019.  If the S&P continues to average 6% for the remaining months in 2019, the total return for 2019 will be about 100%.   Amazing.   Of course, the probability of the stock market returning 6% per month for the next 10 months is very low. 

Here's what I'd do if it did happen:

  • Convert my daughter's College 529 account to  100% cash/CDs.  She's four years away from college, so I would want to lock in the gains.   
  • Cash out of at least 50% of my stock investments.   That way, I will have taken my principal out and only left the profits invested.  In other words, I would only be risking "house money."
  • Hedge against a significant correction.  I would likely do this by purchasing put options, but I might short some stocks also.
Again, it is highly unlikely the market will advance 100% in 2019.   However, if it does, I will have a plan to protect our retirement and college funds.

For more on New Beginnings, check back Sundays for a new segment.

This is not financial or investment advice. Please consult a professional advisor.

Copyright © 2019 Achievement Catalyst, LLC