Seychelles commits to share Tax Info with G5 Nations

By Billie Nguyen on 12-09-2014

Tagged Under : Nations, Tax Info

The Seychelles is the latest country to commit to the automatic exchange of tax information as part of a scheme piloted by the Group of Five (G5) nations.

The G5 pilot are the 5 countries – the United Kingdom, France, Germany, Spain, and Italy. These countries aim to deter and crack down tax evasion. They hope that their framework for the automatic exchange of information will be used as a template for the conclusion of a wider multilateral agreement.

Up to now, 46 countries and jurisdictions have agreed to implement a new global standard on the exchange of information. The first exchange is scheduled to take place in 2017, with respect to data collected from December 31, 2015. Parties to the new standard will provide signatures at the October Organisation for Economic Co-operation and Development (OECD) Global Forum meeting to be held in Berlin.

The finance ministers of the G5 nations said: “We warmly welcome Seychelles’ decision to join the initiative for early adoption of the new global standard on automatic exchange of information. We ca

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Should You Spend Your Money or Your Time?

By Devin Reese on 10-09-2014

Tagged Under : Time

Weve all heard that time is money. It can mean various things to various people.

If we spend our time instead of our money, we miss other opportunities. If we spend our money instead of our time, we lose the money.

When we first start out in life, we often dont have a lot of money and dont have much choice other than to spend the time. After we have been at it for a while, however, we often do have a choice. We can decide when we want to do something ourselves and when we want to spend the money to hire someone.

But how do people decide whether to spend money or time?

Spend time when you dont have the money

It is a pretty easy choice if you dont have the money. Either you do without or you do it yourself. It isnt necessarily a bad thing to be forced to try new tasks. You may find that you actually enjoy whatever it is you feel you have to get done. There are so many resources available now that make it easy to figure out how to do things: You Tube videos abound with people showing you how to do everything from sewing a seam to building a house; Internet searches yield many options on things others have tried and used to get a job done; and of course, the library and mentors are also available to assist.

Spend time when you want to learn a new skill or have a new experience

People are curious.

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The Risk of a Defined Benefit Pension

By Billie Nguyen on 09-09-2014

Tagged Under : Benefit Pension, Defined Benefit, Defined Benefit Pension, Pension

While defined benefit pensions are a great deal for employees, it is an extremely expensive benefit for employers to offer.  With these pension plans, the risk sits with the employer whereas with a defined contribution plan, the risk is reverted to the employee.  However, that does not mean that plan members do not face risk. Perhaps the greatest risk that a defined benefit plan member can face is a large unfunded pension liability.  While pension bankruptcy may not be that likely with a Canadian government based pension, changes to the plan to make it sustainable can significantly impact retirement plans.

In fact, there were recent changes to the Newfoundland & Labrador pension plan because of the unfunded pension liability that has affected thousands of employees, yours truly included.  While Im not vested into the plan yet and do not plan to be working for another 25 years, it still does impact my future plans.  The changes include an increased contribution requirement from employees, increased working requirement to qualify for retirement benefits, and changes to the deferred pension status.

How to Reduce the Risk

For new government employees just starting out with a long career ahead of them, there is a risk of further pension changes.  Whi

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The Estate Tax is a Poor Source for Federal Revenue

By Christopher Odonnell on 07-09-2014

Tagged Under : Estate Tax, Revenue

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The estate tax is one of the least effective means of raising revenue in the federal tax code. It combines high administrative costs, low revenues, and implicit taxes on capital. It has a slippery base that creates a cottage industry of tax planning – resources that could be better used in the productive economy. It produces little revenue – only about $18 billion per year. And it is a tax on capital formation, which is highly elastic with respect to tax.

Using the Tax Foundation’s Taxes and Growth Model, we modeled the effects of eliminating the state tax. The effects were as follows:

 

The estate tax is levied entirely on private saving, or capital stock. Eliminating this tax would, over the long term, increase the capital stock by 1.68%, improving wages. The positive total federal revenue from these long-term changes would outweigh the modest amount of revenue lost from eliminating the tax.

Accumulated wealth is what makes America – in the aggregate – richer. While th

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If you’re struggling financially as a student, you need to read this (or keep on struggling)

By Devin Reese on 05-09-2014

Tagged Under : Struggling Financially, Student

College students are completely clueless about managing money. Most college students are in debt now and will be for a long time. Why do I say this?

I think its fair to say that most college students are struggling financially after reading those stats. On the bright side, I got some pretty sweet news for you

You dont have to be a financially struggling student thats always broke!

Being broke sucks. Theres no other way to put it.

I want you to have options. First lets look at financial problems that students face.

What are the biggest issues facing college students when it comes to finances?

I reached out to a member of our community to see what she had to say about this. Brenda has gone back to school and is doing it without going broke. Brenda recently shared her story on how she plans to pay for college. The four reasons for financial struggles come word-for-word from an email that I received from Brenda.

  1. Saving money. I feel that a lot of students dont know how to save money because they werent taught proper techniques that will set them up for success in the future; a budget definitely helps.
  2. Peer pressure. Students feel the need to fit in with friends who are all attending colleges right out of high school. What s

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