Posts tagged with: finance

For God and ProfitThe US Review of Books recently analyzed Samuel Gregg’s latest book, For God and Profit.  John E. Roper, the journalist who wrote the review, gave For God and Profit a “RECOMMENDED” rating.  Beyond the rating, Roper, had some very positive remarks about Gregg’s book.  He said this:

The author knows he has his work cut out for him. Many Christians have been indoctrinated with a general distrust of both money and its effects on society. This often translates into the belief that money, while necessary, is still inherently evil, and that those who trade in it such as banks and other financial institutions are suspect at best. Thankfully Gregg is well-prepared for the challenge in front of him, and in possibly one of the finest books ever written on the subject, he shows how faith and finance do not have to be incompatible.

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Can we live the good life in the world of finance and banking? Acton’s research director, Samuel Gregg, explores that question in his latest book For God and Profit: How Banking and Finance Can Serve the Common Good. He was recently interviewed by the Social Trends Institute in order to discuss the motivation behind writing the book as well as expanding on the theme of his book.

Some of the highlights:

What’s the biggest challenge facing Christians and other people of good will seeking to shape the world of finance and banking?

Perhaps the most important is that we need to learn how modern banking and finance functions before they make suggestions or critiques. There’s no point criticizing something like short-selling unless you understand, first, what short-selling is, and second, the ways in which it actually serves as an early warning system for significant problems in a business or even an economy. In fact, short-sellers are invariably light-years ahead of the regulators when it comes to such matters.

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Blog author: jcarter
Wednesday, May 11, 2016
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forgodandprofitIf we forget finance’s indispensable role in modern economies, says Samuel Gregg, research director for the Acton Institute, in an op-ed for The Detroit News, it’s guaranteed that everyone will be worse off.

Finance establishes links between the economic present and economic future of individuals and communities. It helps us manage risk and develops methods for continually enhancing the management of risk over the short, medium and long term. And it creates economic value by enabling money to assume the characteristics of capital.

Note that none of these functions are exercises in radical individualism. Finance can certainly help make us independent, but it also increases and is a sign of our interdependence.

Read more here. The op-ed is adapted from Gregg’s For God and Profit: How Banking and Finance Can Serve the Common Good.

How-to-Understand-Federal-Tax-FormsAfter almost three decades of filling out increasing complex tax forms, you’d think I’d be used to it (or at least resigned to the onerous task). But every tax season I complain even more than I did the year before. Why do I have to do this?

Perhaps the problem, notes Daniel J. Hurst, is that I’m forgetting that it’s part of my responsibility as a Christian. “While we may have grumbled when filing our taxes this year,” says Hurst, “did we pause to think that giving the government part of our income is a way we honor the Lord and express our trust in his grand design?”
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Conservatives are known for arguing about the ill effects of over-regulation, reminding us how it stifles innovation, cramps entrepreneurship, and harms small businesses. Where we’re less effective is connecting this reality to the more fundamental abuses it wields on human dignity in general and the poor and vulnerable in particular.

In a 45-minute talk given at Heritage Action, Senator Ben Sasse of Nebraska offers a detailed critique of over-regulation in America.

Pointing first to the proper scope of regulatory policies, Sasse proceeds to note the increasing overreach of the federal government and the range of reasons to oppose it. Watch an excerpt here:

Although arguments about over-regulation and taxation are bound to involve in depth discussions about numbers and econometrics, Sasse reminds us that our focus must remain on the preservation of freedom and human dignity. (more…)

window-taxKing William III of England needed money, so in 1696 he decided to implement a new property tax. To make sure the tax was progressive (i.e., affected the rich more than the poor), the parliament devised a seemingly clever idea: they’d use the number of windows as an index for the value of a house.

The assumption was that larger homes, presumably owned by the wealthy, would have more windows than the houses of the poor. All a tax assessor needed to do to calculate the tax was walk around a building and count the windows. Ingenious, no?

In its initial form, the tax consisted of a flat rate of 2 shillings upon each house and an additional charge of 4 shillings on houses with between 10 and 20 windows, or 8 shillings on houses with more than 20 windows.

You can probably imagine what happened next.

As economist Tim Hartford explains, a “fundamental error is the idea that architecture doesn’t respond to tax incentives.”
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Blog author: jcarter
Wednesday, April 15, 2015
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7figuresToday is tax day, the day when individual income tax returns are due to the federal government. Here are seven figures you should know about tax day:

1. The average federal tax rate for all households (tax liabilities divided by income, including government transfer payments) before taxes is 18.1 percent.

2. Households in the top quintile (including the top percentile) paid 68.8 percent of all federal taxes, households in the middle quintile paid 9.1 percent, and those in the bottom quintile paid 0.4 percent of federal taxes. (Quintiles — fifths — contain equal numbers of people.)

3. Social insurance taxes (e.g., Social Security, Medicare) account for the largest share of taxes paid by households in all but the top quintile.

4. The U.S. tax code is approximately 2,600 pages long (about 1.5 times longer than Tolstoy’s War and Peace and 2.5 times longer than Ayn Rand’s Atlas Shrugged).

5. At midnight, the U.S. Treasury gets an extra $760 million. Taxpayers have three years to claim refunds, so the $760 million that is owed to 918,600 people will, by statute, go to the governments coffers tomorrow.

6. If you’re owed a refund, you won’t get in trouble if you miss the April 15 filing deadline. But if you’re wrong and you actually owe money, you’ll incur a maximum penalty of 5% for each month after the deadline. If you’re more than 60 days late, you’ll be fined $135, or 100% of the unpaid tax — whichever amount is smaller.

7. Examining 30 years of road crash data from the National Highway Traffic Safety Administration, researchers found that fatal car crashes increase 6 percent on April 15.