Dow Sees Biggest-Ever One-Day Plunge, Closes down 2,013 points on coronavirus fears.

I'm wondering if the cut in payroll tax will mean that the tax tables remain the same, so at the end of the year people will have to pony up those taxes? I can't see how this will work. :confused:😵
 

C'est Moi said:
I'm wondering if the cut in payroll tax will mean that the tax tables remain the same, so at the end of the year people will have to pony up those taxes? I can't see how this will work. :confused:😵
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You already are taxed on the full amount you earn pre payroll taxes ...you pay tax on what comes out ....so think of it as fica handing you back two of the 6 bucks they take that you already are taxed on ....it is a net of two dollars in your pocket and is not taxable since you already were taxed on it
 
oldman said:
http://www.marketwatch.com/story/oc...s-to-25-the-day-before-record-date-2020-03-09

I guess the board had a change of heart.
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No they didn’t ...the dividend was cut from 3.16 to 79 cents for April ....the stock fell so much that at 3.16 would be a 22% dividend if they did not cut to .79 cents ...it is supposed to go to 11 cents in July
With the stock losing 52.0%--the biggest one-day selloff in its history--to $12.51, the current annual dividend rate of $3.16 a share implies a dividend yield of 25.26%.

Rising Dividend yields from a falling share price are a very bad thing ....... rising dividends from the board increasing them is a good thing .......

this is an awful thing....oxy is bleeding red..... Their losses are huge.

Shares yesterday crumbled to about the level of the company's 1982 IPO. for those who think dividends come from profits guess again .... they come only from the board declaring payouts off your share price ,whether there are profits or losses .

Occidental Petroleum Corporation (NYSE: OXY) announced today that its Board of Directors approved a reduction in the company’s quarterly dividend to $0.11 per share from $0.79 per share, effective July 2020. The company also announced it will reduce 2020 capital spending to between $3.5 billion and $3.7 billion from $5.2 billion to $5.4 billion and will implement additional operating and corporate cost reductions.
 

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mathjak107 said:
Not correct .....fica is taxed as part of our income

so if you earn 100 dollars 100 is taxed as income even though roughly 6.50 goes for fica of that 100 .we pay taxes on the tax so to speak .

now you would you still pay the same tax on 100 dollars like before but only 4.50 goes to fica ...you net 2 dollars more in your take home with no additional income tax since you pay taxes on 100 regardless
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FICA is Social Security, which is already in trouble. That's what he's talking about reducing?

I've seen no specifics on his plan, which is why I'm asking.
 
What we should all be afraid about is a political move to get the market back on track strictly to influence the coming November election.
 
StarSong said:
I'd like to pose a question. The market supposedly is better today at least in part because of Trump's comment about cutting payroll taxes.
I don't understand how cutting payroll taxes helps workers unless there's a corresponding cut in income taxes.

Am I missing something?
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If you are missing something, so am I.
 
If you earn 100 dollars and are taxed on 100 dollars the fact you have to give me 6 as a payroll tax is irrelevant tax wise since you are always taxed on the gross amount before fica .

Your tax is on 100 in income period, no matter how much fica I pull from you fica is not deductible and it is taxed as income ..if I say give me just 4 instead of 6 you are still taxed on 100 but now have 2 additional dollars in pocket to spend ...it has nothing to do with them changing tax tables ....if anything every year tax brackets are extended to allow more income at lower levels of tax
 
Don M. said:
Amen! I suspect the markets will be suffering from "whiplash" for the next few days/weeks....perhaps even months. Today, the markets started out well into the Green at the opening, but are already sliding downwards....with the NASDAQ solidly into the Red. There is so much uncertainty going on that any attempts to time this market would be almost futile. Diversity into conservative investments will probably be the Best way to avoid major losses during this mess. It took about a year for the markets to stabilize during the financial crisis, and this situation could be similar.
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Nasdaq closed up 393.58 points today Don. Don't know what part of the day you saw red. Dow 1,167.14 and S & P 135.62. I think we're in for a wild roller coaster ride.
 
OneEyedDiva said:
Nasdaq closed up 393.58 points today Don. Don't know what part of the day you saw red. Dow 1,167.14 and S & P 135.62. I think we're in for a wild roller coaster ride.
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We were down earlier and lost an 1100 point gain .....fixed income got slammed bad today as bonds got hit with heavy losses....we recovered in stocks later in the day but bond funds ended at the lows
 
mathjak107 said:
We were down earlier and lost an 1100 point gain .....fixed income got slammed bad today as bonds got hit with heavy losses....we recovered in stocks later in the day but bond funds ended at the lows
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I was out shopping with the senior group during that time. By the time I checked the markets they were in recovery. As you know, I don't concern myself with bonds.
 
OneEyedDiva said:
I was out shopping with the senior group during that time. By the time I checked the markets they were in recovery. As you know, I don't concern myself with bonds.
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Yesterday was incredible for the long treasury bond ... I was Tlt up like 8% at one point ....that is an insane gain for a govt bond ....it fell 5% today as stocks recovered
 
mathjak107 said:
What if you traded funds like Tlt for the capital appreciation and then sold it before the record date for interest ?.
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What's TIT? We can collect capital gains and dividends and a very small percentage of interest, which we are encouraged to disperse as charity to non Muslims, but are discouraged from trading in bonds.
 
OneEyedDiva said:
What's TIT? We can collect capital gains and dividends and a very small percentage of interest, which we are encouraged to disperse as charity to non Muslims, but are discouraged from trading in bonds.
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It is the long treasury bond fund Tlt ....it holds long term bonds ....it is as volatile as stocks can be ...it is up 45% over the last year ...it usually goes up when stocks fall bad ....
 
mathjak107 said:
It is the long treasury bond fund Tlt ....it holds long term bonds ....it is as volatile as stocks can be ...it is up 45% over the last year ...it usually goes up when stocks fall bad ....
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That’s because the bond market likes bad news as Rick Santorum on CNBC always says.
 
oldman said:
That’s because the bond market likes bad news as Rick Santorum on CNBC always says.
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not the bond market but treasuries .. big difference ..... treasuries were up the day of the big fall. total bond funds , corporate bonds and high yield took a nasty fall .... they react more like stocks because credit ratings come in to play ... a flight to safety should be treasuries only .
 
Today, the markets "officially" moved into Bear territory.....all of the major indexes down about 5%. It's going to be pretty hard to find any stability for the foreseeable future.
 
Don M. said:
Today, the markets "officially" moved into Bear territory.....all of the major indexes down about 5%. It's going to be pretty hard to find any stability for the foreseeable future.
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Maybe the shorts are doing well.
 
C'est Moi said:
I'm wondering if the cut in payroll tax will mean that the tax tables remain the same, so at the end of the year people will have to pony up those taxes? I can't see how this will work. :confused:😵
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IMO it's an example of political sleight of hand to use the virus as a creative first step on the slippery slope to weaken/dismantle the so-called entitlements.

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Aunt Bea said:
IMO it's an example of political sleight of hand to use the virus as a creative first step on the slippery slope to weaken/dismantle the so-called entitlements.
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I'm not sure I understand what you mean. Payroll taxes are in no way an "entitlement." 🤔
 

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