Supreme Court to Decide on The Release of Trump’s Financial Records
The Supreme Court had a lot to say about President Trump’s wallet. Well, it comes with big questions, like whether the president can block the release of his financial records. Yesterday, SCOTUS heard oral arguments over the phone on three Trump-related cases.
The first argument covered two cases focused on subpoenas from House investigations, which were looking into alleged crimes like whether Trump lied on his financial records to reduce his taxes. The second involved subpoenas from the Manhattan DA, who’s investigating alleged hush-money payments to women (remember Stormy Daniels?). Trump has denied wrongdoing in each case. And his defense team claimed that the House’s subpoenas are illegitimate, adding that as long as Trump is in office, he should be immune from any criminal investigation.
Some of them (hint: the liberal justices) gave a history lesson to get their point across: if President Nixon and President Clinton were forced to cooperate in their investigations, why shouldn’t Trump? Others (hint: the conservative justices) focused on whether allowing the subpoenas would lead to presidential harassment. Both sides seemed skeptical that a president can have absolute immunity.
So what’s the final ruling? There isn’t one…yet. A decision is expected within weeks. But there are a few different ways the court could rule. Justices could require Trump to hand over some financial records or none at all. They could also hand the cases back over to the lower courts – in which case a decision isn’t likely until after the November election.
The Supreme Court is weighing the powers of Congress against those of a sitting president. Whatever the court decides, this could have implications not just ahead of the November election, but for years to come.
Health Official Testify to the Senate
Top US health officials. Yesterday, they testified remotely before the Senate on COVID-19. Dr. Anthony Fauci warned against reopening too quickly, saying that if states ignore federal guidelines, the US could see avoidable “suffering and death.” He also said a vaccine likely won’t be ready by the time schools reopen this fall. He and CDC Director Robert Redfield both said the US needs to ramp up contact tracing and testing. And though Redfield said the US is in better shape than it was, he channeled his inner Taylor Swift to point out that we’re not “out of the woods yet.”
Not everyone’s on the same page: The hearing came one day after Trump said “we have prevailed” on testing for the virus. He’s been a proponent of reopening the country ASAP, and has criticized Democrats for moving “too slowly” in doing so.
Covid-19 and Your Money
House Democrats released their proposal for a fourth relief package yesterday. The bill includes $875 billion for state and local governments, $175 billion for testing and healthcare, and $75 billion in housing assistance. It adds up to $3 trillion total. The U.S. budget deficit grew to a record $738 billion in April.
So what does this mean for your money?
It could cost less to borrow money. COVID-19 has hurt profits across different industries. And you’ve probably heard the word “recession” a lot more than once. In rough economic times, the Federal Reserve can lower interest rates to encourage people to spend, invest, and borrow money. In March, the Fed cut rates down to almost zero. That could help you get better borrowing terms when you buy or refinance a home. And maybe a slight discount if you carry a balance on your credit card or other variable-rate debt.
Oh, and if you’re planning to take out new student loans, good news: interest rates on federal loans for the upcoming school year just dropped to the lowest level ever.
You might get a break on your current debt. Lenders are getting more flexible to help take some financial pressure off people who are struggling. If you already owe Uncle Sam back for college, you probably don’t need to make payments (including interest) until October. If you’re struggling with credit card, personal loan or mortgage payments, call your creditor. Several banks have said they may waive fees or defer payments.
You could get a lot more money from the gov than usual. In March, President Trump signed a $2 trillion relief bill into law. It included things like $1,200 checks, an extra $600 per week in unemployment benefits, and help for small businesses. In May, House Dems said ‘that was so much fun, let’s do it again.’ And introduced a new bill that would give American households up to $6,000, help paying housing and utility bills, and more. TBD on if it’ll make it through Congress and onto Trump’s desk.
Twitter Will Let Almost All Its Employees WFH Permanently
Yesterday, Twitter CEO Jack Dorsey wrote in an email to employees that the company will allow almost everyone to work from home permanently.
Dorsey had said he planned to make Twitter’s workforce more “distributed” before the coronavirus pandemic, but then…those plans got pushed up. Office closures have forced many companies to try remote working. Google said a majority of Googlers will WFH until 2021, and Facebook will allow all employees who are able to WFH to do so even after it reopens offices after the July 4 weekend.
And it’s not just tech: The pandemic prompted members of the button-down brigade like Morgan Stanley and Barclays to add security measures that allow employees to WFH, to generally positive results. One report by NordVPN found that average workdays have stretched three hours longer since lockdowns began. Feel that.
This could signal a turning point for a commercial real estate trend that’s been gaining steam for over 100 years. Since the late 19th century, a company without an office has been no company at all. But as the economic outlook gets bleaker, anxious execs could eagerly ditch leases while employees work from their breakfast nooks.
Commercial real estate leases often last 10 years, and very few firms are currently in a position to make 10-year decisions.
Google owner Alphabet has stopped real estate deals for over 2 million sq. ft. of new office space since the pandemic began, per Marker.
For companies that do return to offices, the digs will look different. Staff might work alternate days and be herded by sensors and markings to enforce social distancing—and architects say the long-abandoned cubicle’s comeback has arrived.
Looking ahead…real estate is slow to react to economic contractions, so we probably won’t see the peak of any office exodus until 2021 at least.
JPMorgan Chase See Future in Cryptocurrency
Its CEO once called bitcoin a fraud but now U.S. banking giant JPMorgan Chase has added its first cryptocurrency exchange customers, CoinDesk has confirmed.
Sources told The Wall Street Journal Tuesday the bank signed two popular regulated exchanges – Coinbase and Gemini, the latter founded by Tyler and Cameron Winklevoss.
The fact that both exchanges are regulated in the U.S. was apparently a factor in the approvals, which still took a lengthy period of vetting, the WSJ said. Accounts for the two crypto firms were approved last month, the sources said, and are now in use.
The move by JPMorgan is notable in a nation where banking services are hard to come by for any firms dealing with cryptocurrencies, which are viewed as a high risk by the banking industry. Until now, exchanges and other firms working with digital assets have been served by a few crypto-friendly banking institutions such as Silvergate.
Still, Gemini and Coinbase aren’t the first crypto clients for JPMorgan. TokenSoft, a regulated transfer agent and software vendor for security token services, has had an account at the bank since 2017, CEO Mason Borda said on Twitter.
The IRS Wants to Keep Its Eye on Crypto Taxes
The Internal Revenue Service (IRS) is seeking third-party contractors to help it assess whether certain U.S. taxpayers have properly paid taxes on their crypto holdings.
According to an email posted online by CryptoTrader.Tax and verified by CoinDesk, IRS Assistant Deputy Commissioner John Cardone said the agency is looking for contractors to “assist our Revenue Agents in calculating taxpayers’ gains or losses as a result of their transactions involving virtual currency.” At least one other company in the space, which asked not to be named, also received the email.
Swizz Beatz Wants to Create Rapper Reparations
Swizz Beatz not only wants to give a minimum of one million dollars to artists like Melle Mel and the Sugar Hill Gang, but he believes rappers should be paying taxes to them, as well.
The Verzuz battles have gone from a COVID-19 quarantine phenomenon to a full-on business move for Swizz Beatz and Timbaland. Their series quickly shifted from two artists “battling” it out on Instagram Live by playing their best career hits to a celebration of music that boasts over one million viewers. While there have been plenty of rising artists of recent years who want a piece of the Verzuz pie, Swizz and Timbaland remain dedicated to showcasing the icons and legends who have helped pave the way for many of the artists topping the charts today.While speaking with Joe Budden on Instagram Live for Beatz’s Zone Radio, Swizz shared that he believes newer rappers should be “paying taxes” to the icons. “We can’t mix the hype with the reality of what this all started from,” Swizz said. “I want to raise a million dollars for each icon that started hip hop. Kool Herc on down.” Budden agreed.
“The fact we’re not paying taxes on who started hip hop shows we don’t f*cking really love hip hop,” Swizz continued. “The fact we don’t pay taxes as artists to those icons that paved the way, took the lower cut for the music that allow us to feed our family… F*ck the government. We need to be paying taxes to the creatives of hip hop that gave us freedom of speech to move forward. I’m going to go so hard with that.” Swizz added “Melle Mel, Grandmaster Flash, and Sugar Hill Gang, minimum a million a piece.” Watch Swizz Beatz give his passionate petition for legends of hip hop below.
No Kid Hungry Foundation Rejects Tekashi’s $200,000 Donation
Tekashi revealed that he donated $200,000 to the No Kid Hungry Foundation. The rapper posted the news via IG and said: “REMEMBER if you are blessed GOD gave you that blessing not just for YOU but also TO HELP OTHERS 🙌🏼 GOD FIRST.” Now, the No Hungry Kid Foundation has cleared up the donation, noting that they are not accepting the contribution from the storied rapper. Well the No Kid Hungry Foundation said, “Nah we Good”
The foundation issued a statement saying, “We are grateful for Mr. Hernandez’s generous offer to donate to No Kid Hungry but we have informed his representatives that we have declined this donation. As a child-focused campaign, it is our policy to decline funding from donors whose activities do not align with our mission and values.”
Uber Wants More Grub
Uber is looking to acquire food delivery service Grubhub, according to multiple reports. Grubhub shares shot up 29% as if it were a soggy burger excited to finally become someone’s dinner.
Zoom out: Food delivery is a fierce business, so consolidation was on the menu this year, global pandemic or not. The WSJ reported in February that industry players like Uber, DoorDash, and Postmates were already sketching out ways they might combine to not completely cannibalize one another.
For Uber, this could be a seamless acquisition in more ways than one.
Its food delivery arm, Uber Eats, has been surging during the lockdowns, with Q1 bookings up over 50% annually.
However, the company’s core rides business was down about 80% in April, forcing it to implement harsh cost-cutting measures. Last week, Uber laid off 3,700 employees, or 14% of its total workforce.
But it’s not crawling into a shell. Besides its reported interest in Grubhub, Uber is leading a $170 million investment in e-scooter and bike company Lime.
Ash Exantus aka Ash Cash is one of the nation’s top personal finance experts. Dubbed as the Hip-Hop Financial Motivator, he uses a culturally responsive approach in teaching financial literacy. He is also a speaker, and bestselling author of six books. Ash has established himself as a thought leader and trusted voice with Corporate America, Colleges, Churches, and Community based organizations. Ash is best known for helping people maximize their full potentials by giving them the inspiration, tools, and resources needed to live their best lives. For more info on Ash please visit www.IamAshCash.com
If you haven’t already heard, JAY-Z has done it again. Working to shape the conversation surrounding cannabis, foster equality and fairness in the development of the industry, promote awareness for the many uses and benefits of cannabis and empower consumers to feel free to use cannabis how, when, and where they want, JAY-Z is the new face of the future.
JAY-Z has a partnership with California cannabis company Caliva. The 50-year-old, born Shawn Carter and married to pop-star Beyonce, is the latest celebrity to get into the cannabis business which has spread fast in the United States as more and more states legalize it for recreational purposes.
JAY-Z says he also wants to increase the economic participation of people returning from incarceration through job training and workforce development. Through research, I’ve learned; His role will consist of driving creative direction, outreach efforts and strategy for the brand.
HOW DOES THIS PARTNERSHIP HELP ECONOMICALLY?
The rapper, whose formal title with Caliva will be chief brand strategist, will also further his social justice efforts by increasing job training for former prisoners as well as fostering quality and fairness in the development of the legal marijuana industry.
You’ve worked hard to build your estate, and maintain it over time. Eventually, it will be time to leave your estate to your children. How will you make sure that they are prepared?
Just as you have a responsibility to manage your wealth, you have a responsibility to educate your children about how to manage it. Children also have a responsibility to learn. It’s your job to show them the way.
The dialogue about family wealth changes over time. Children might have a certain frame of reference as teenagers, but that dynamic changes once they marry and spouses are introduced into the family. The conversation about transfer of wealth happens over and over again, at different milestones in life. As the point of departure nears where there will be some significant asset transfer, all of the cumulative talks where you have been educating and steering the child over time will have to be used in their OWN lives.
Monday ( Sept 21) on the “Ash Cash Show” Ash Cash shared praise and admiration to his daughter, her growth and respect for money is inspiring, as she is active in the family business. At the tender age of twelve, seeing her using her earned income to purchase her own items, was a delight for him to see. Like most parents should, Ash Cash used the best time to start talking to his child about money and the family’s assets as early as he felt comfortable. The process ultimately has two parts that should be handled separately: teaching money skills, and revealing family wealth.
Think of it as a process of apprenticeship, where your children will learn from you how your family’s estate should be handled. Incremental learning and incremental responsibility will be the cornerstones of a successful education process.
When you feel like your children are mature enough to handle wealth management, and you respect the people they are becoming, it’s time to go to the next step and educate them about the family’s wealth and their inheritance. YES! THEIR INHERITANCE. Advisors say, that making them aware of your family’s wealth, and their responsibilities pertaining to it, early on will set them up for the best chance of success.
Allow your children to sit in on business conversations and learn to communicate as a business owner. You need to allow the next generation to make their voices heard when it comes to philanthropic endeavors. Don’t just sit around a table and make decisions about which organizations to give family money to, encourage your heirs to participate in the work these organizations do, and experience the difference that money makes.
It’s important to teach children the story and context that’s behind the accumulation of family wealth. It involves other members of the family who built something that is being passed down. In that story, there are highs and lows, setbacks, victories, and all of this is important in setting the context for stewardship. Share with them how complex it was to achieve the wealth and what it takes to keep it.
The education is KEY. If you have a portfolio and you look at its value over time, your heirs need to understand how different withdrawal rates will affect that value. It’s frequently an eye-opener for children and families when they realize that they have to be very deliberate about this process in order to preserve the wealth through generations.
Remember: This sense of accountability will permeate their lives and help them behave in matters of generational wealth.
More and more you read about income and wealth inequality in the United States your learn it is on the rise. This fact has been highlighted by several 2020 presidential candidates, who believe that wealth is too highly concentrated at the top. One proposal to redistribute wealth from the top earners is a wealth tax (there are currently several versions of this tax being suggested). While most taxes hit a flow of money (like when you earn money via an income tax or when you buy a product via a sales tax), a wealth tax hits stagnant money, such as business assets, personal belongings, etc.
To be honest; as income and wealth inequality rise, so too does its prominence in political discussions.
Americans “strongly agree” that the wealthiest individuals should pay higher taxes. According to a Federal Reserve Survey, “families at the top of the income distribution saw larger gains in income between 2013 and 2016 than other families, consistent with widening income inequality.”
This trend has led prominent government officials and various 2020 Presidential Candidates to recommend policies to curb wealth at the top income brackets. Some recommend increasing corporate taxes, others recommend increasing progressivity of existing income taxes, closing loopholes, increasing estate taxes, implementing a wealth tax or some combination of all proposals. The remainder of this article will specifically focus what we call Wealth Tax
Based on research ,
A wealth tax is most similar to a property tax, except instead of taxing property ownership exclusively, a wealth tax would be a tax on all assets. This includes personal belonging (i.e. clothes, jewelry, cars), business assets (i.e. Jeff Bezos’ interest in Amazon), investments (i.e. money that millionaires put into other companies), and may even include foundations (i.e. the Bill and Melinda Gates foundation).
The wealth tax is considered an aggressive plan and has been a topic of hot debate not only between politicians and business leaders, but also amongst economists. Both sides believe that the tax system should be equitable and promote growth.
WHO ARE THE SUPPORTERS?
Supporters of the wealth tax say it will promote a redistribution of wealth to those who need it most. Opponents of the proposal say it will be challenging to implement and will ultimately hurt economic growth and job creation
PROS OF A WEALTH CREDIT
A wealth tax would help reduce wealth inequality, which is at historically high levels. Typical income taxes are not an effective way to tax the ultra-wealthy as they earn most of their money via investments and other means. Another reasons is,Some self-made and inherited billionaires have called for a wealth tax. A group of nineteen billionaires and multi-millionaires signed an open letter supporting the wealth tax as a “moral, ethical, and economic responsibility” to improve the economy, health outcomes, and democratic freedoms.
Lastly on reasons A wealth tax will increase tax revenue to the federal government and allow funds to be redistributed.
WHAT ARE THE CONS ?
A wealth tax punishes success and will hurt the economy by discouraging business investments.
Roughly 80% of millionaires in the U.S. earned their wealth instead of inheriting it. A wealth tax unfairly punishes success of individuals who, on average, work more hours than lower-wage earners
To add a wealth tax may be deemed unconstitutional and an ineffective means to curb wealthy individual’s influence. However, we look at everything we are concerned with the political influence of wealthy individuals — we should strengthen campaign finance laws, not cap wealth potential.
