Gates Advocates for Higher Taxes on Wealthy Individuals

Business Insider

Bill Gates expressed that he would have a significantly reduced wealth if he were responsible for the US tax system, stating he would be tens of billions of dollars poorer. In an interview, he advocated for a more progressive tax approach and emphasized the importance of an estate tax. Gates has chosen to allocate much of his fortune to charitable causes while planning to leave his children only a small portion of his wealth. He argued that a reformed tax system could be implemented without harming the incentives for innovation and entrepreneurship.

Harris Advocates for Increased Capital Gains Taxes Amid Uncertainty

CNBC

The tax landscape is poised for potential changes as Vice President Kamala Harris advocates for increased long-term capital gains taxes, raising the net investment income tax (NIIT) to 5% for high earners. Currently, capital gains are taxed at rates of 0%, 15%, or 20%, with the NIIT applicable for individuals with modified adjusted gross income exceeding $200,000. These proposals require congressional approval, creating uncertainty among investors and advisors who prefer to wait until legislation is finalized before making changes. Additionally, Biden's tax plans would specifically target single filers earning above $1 million, potentially impacting lower-income earners during significant one-time asset sales, necessitating careful tax planning.

10-Year Treasury Yield Declines Following Disappointing Jobs Data

CNBC

The yield on the 10-year Treasury decreased to 3.667%, while the 2-year Treasury yield dropped to 3.636%, following August's nonfarm payrolls report indicating a slowing labor market. Nonfarm payrolls rose by 142,000, below the anticipated increase of 161,000, and the unemployment rate eased to 4.2%, aligning with projections. Data from Thursday also revealed private payroll growth of only 99,000, further fueling concerns about an economic slowdown, especially in light of July's disappointing job numbers. With the Federal Reserve's interest rate decision approaching on September 18, markets are factoring in a high likelihood of rate cuts, while investors remain attentive to forthcoming economic indicators.

 📈 Stocks / Finance

S&P 500 Faces Worst Weekly Loss Since March Amid Disappointing Jobs Data

CNBC

The S&P 500 experienced a notable drop, forecasted to mark its worst week since March 2023, as investors grappled with a disappointing August jobs report that raised concerns about economic growth. The index fell by 1.5%, alongside the Nasdaq Composite, which decreased by 2.3%, while the Dow Jones Industrial Average saw a decline of 380 points, or 0.8%. Megacap technology stocks suffered significantly, with Amazon and Alphabet each losing over 3%, reflecting a broader risk aversion in the market amid fears of a slowing economy. The latest jobs data highlighted a growth of 142,000 nonfarm payrolls, short of the expected 161,000, intensifying speculation around potential Federal Reserve rate cuts with traders almost evenly divided on the likelihood of a quarter- or half-percentage point decrease.

Trump Backs Bitcoin, Appoints Musk for Government Reform

Cryptoslate

During a speech at the Economic Club of New York, former President Donald Trump expressed strong support for Bitcoin and the crypto industry, advocating for the United States to become the global capital of crypto. He proposed eliminating 10 regulations for every new regulation introduced to reduce federal oversight and spur industry growth, while also promising to retain the government's holding of roughly 200,000 Bitcoin. Additionally, Trump announced plans to create a government efficiency commission led by Elon Musk, aimed at auditing federal operations and eliminating waste within six months. Meanwhile, in the realm of political sentiment, Trump regained his lead over Vice President Kamala Harris on the crypto prediction platform Polymarket, with a majority of participants favoring him on economic and immigration issues.