STOP SPENDING MONEY | Why The Middle Class Is Screwed
Published: 2022-08-01
Status:
Available
|
Analyzed
Published: 2022-08-01
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
Inflation rate is at its highest point since 1981.
"inflation is the highest it's been since 1981"
Pending
Proposed Inflation Relief Act of 2022 would index tax credits to inflation for low and middle-income Americans.
"this proposal will provide inflation relief to low and middle class Americans by indexing tax credits to inflation"
Pending
If passed, the Child Tax Credit would be indexed to inflation, increasing by the same percentage as inflation.
"if this proposal passes it would index those amounts to inflation so if inflation is nine percent a year then those amounts would also be increased by nine percent"
Pending
The Child and Dependent Care Credit would be increased in line with inflation if the proposal passes.
"if this were to pass it would also be increased right alongside with inflation"
Pending
The American Opportunity Tax Credit would be indexed to inflation and have its income thresholds increased to account for rising costs.
"this proposal would not only index those amounts to inflation but it would also increase the income thresholds that would qualify that way people aren't punished for needing to make more money to pay for things that cost more because people make more money"
Pending
The deductible amount for student loan interest would increase by the rate of inflation.
"this would allow you to increase that amount by the same rate of inflation so imagine if everything stays the same but inflation goes up by nine percent so so do your tax deductions"
Pending
The proposal suggests a zero percent capital gains tax rate for individuals earning up to $165,000 (joint filers) or $82,000 (single filers).
"under this new proposal however that amount would be amended with a zero percent capital gains tax rate being applied to those making up to a hundred and sixty five thousand dollars a year filing jointly or eighty two thousand dollars a year if you're single"
Pending
The first $300-$600 of interest and dividend income would be tax-free under the proposed bill.
"the bill would also allow for the first three to six hundred dollars that you make an interest income to be completely tax-free this would also be applied to dividend income"
Pending
The income threshold for the Net Investment Tax would be increased from $250,000 to $400,000 for joint filers to eliminate the marriage penalty.
"this new bill though would remove the marriage penalty by increasing the 250 000 limit to four hundred thousand dollars"
Pending
The Savers Credit would be increased to $2,500, with expanded income limitations to allow more people to qualify.
"with this new proposal that amount would be increased to twenty five hundred dollars with the income limitations expanded so that more people can qualify"
Pending
The $10,000 SALT cap deduction would be extended for another three years through 2028, aiming to incentivize saving.
"this new proposal however would extend that ten thousand dollar cap in an effort to give more tax credits back to those who make under four hundred thousand dollars a year with the hope that this would incentivize people to spend less and save more especially during a time where we are shifting into a recession"
Pending
Historically, the US stock market tends to peak approximately six months before a recession begins, with a near-zero correlation to GDP growth.
"since 1869 one study found that the correlation between GDP growth and stock market returns was nearly zero and on average the U.S stock market tends to Peak about six months prior to the start of a recession"
Pending
Since 1945, the stock market has historically experienced an average drawdown of 29.2% during recessions.
"throughout every recession that we've seen since 1945 the stock market has at some point seen a sell-off with the average drawdown coming in at a whopping 29.2 percent"
Pending
After a recession ends, the stock market tends to show an average profit of 1.7% and an average gain of 15.3% in the subsequent year.
"by the time our recession is over and actually recovers it tends to post an average profit of 1.7 percent with an average gain of 15.3 percent in the following one year"
Pending
It's not advisable to wait for official recession confirmation to invest, as the market anticipates such events and opportunities will be missed.
"the market is Forward Thinking by the time we actually confirm a recession the opportunity is going to be long long gone"
Pending
The current $6,000 Roth IRA contribution limit has not kept pace with inflation, making it effectively lower in real terms than it was in 2008.
"a five thousand dollar contribution to a Roth IRA in 2008 would be the equivalent of investing almost sixty nine hundred dollars today but here we are with the six thousand dollar limit that is yet to be adjusted while everything else goes up in price"
Pending
The lower long-term capital gains tax rate exists to compensate investors for the risk of capital loss and the erosion of purchasing power due to inflation.
"this is one of the reasons why we have a lower long-term capital gains tax rate to begin with that's because when you invest your money not only are you putting your Capital At Risk but you're also losing purchasing power to inflation"
Pending
Tax rates are likely to be renegotiated before their expiration at the end of 2025.
"I wouldn't be surprised if tax rates are negotiated at a later time when they're set to expire at the end of 2025"
Pending