Quarterly Market Review – 1st Quarter 2015

 Quarterly Market Review – 1st Quarter 2015

This report offers insights, graphs, and charts covering world capital market performance and a timeline of events for the past quarter. The featured topic this quarter is “MasterChef of Investing”, which compares two broad approaches to investing, active and passive, with the Television show “ MasterChef”  and then offers a third alternative that combines the creativity of the first approach with the simplicity of the second.

Original IRS 1040 Income Tax Form From 1913

 1913 IRS 1040 Form

Here is the original IRS 1040 income tax form from 1913.  The form is 4 pages long including one page of instructions. In contrast, the current 1040 instructions alone run 175 pages. Passed by Congress on July 2, 1909, and ratified February 3, 1913, the 16th amendment established Congress’s right to impose a Federal income tax. However, in 1913, due to generous exemptions and deductions, less than 1% of the population paid income taxes at the rate of only 1% of net income.

Individual income tax rates started at 1% in 1913, and the maximum marginal income tax rate was only 6% on incomes above $500,000 ($11 million in today’s dollars). The personal exemption was $3,000 for individuals ($66,000 in today’s dollars) and $4,000 for married couples ($87,500 in today’s dollars), meaning that very few Americans had to pay federal income tax since the average income in 1913 was only about $750.

President Obama’s New Tax Proposal

In his 2015 State of the Union address President Obama introduced several tax increases as well as some tax cuts. Below is a short summary of President Obama’s tax proposal and why most politicos believe it will be met with disapproval in Washington.

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Quarterly Market Review – 4th Quarter 2014

 Quarterly Market Review – 4th Quarter 2014

This report features world capital market performance and a timeline of events for the past quarter. It begins with a global overview, then features the returns of
stock and bond asset classes in the US and
international markets.

The report also illustrates the performance of globally diversified portfolios and features a quarterly topic. “Living with Volatility, Again”