<p>How much revenue would the tax even bring in? Peanuts. You are way exaggerating how much tax the rest need to pay to make up for it one way or the other. It won’t pay for one month in Iraq. It’s much more the principle.</p>
<p>…and the principle is what, Barrons? That paying taxes is only for “the little people” as Leona Helmsley said? </p>
<p>Hey - my personal contribution to the federal budget is less than peanuts. And I work for it the money I pay taxes on! How about we exempt my income from taxation? (Not yours, Barrons - just mine.) :)</p>
<p>
That’s a curious argument. Because the amount the tax raises would be “peanuts” lets let Paris Hilton and her cohorts inherit billions of dollars that has never paid a penny in taxes. Meanwhile the chauffeur driving Paris should pay taxes on his income. Yeah, that’s fair.</p>
<p>And regarding barron’s estimates of the revenue, he is either being disengenous or is just quite misinformed. The Iraq war costs $2 billion/week according to [The</a> Boston Globe](<a href=“http://■■■■■■■.com/gv6us]The”>http://■■■■■■■.com/gv6us), so lets round it up to $10 billion a month. I found this estimate
</a> Peanuts all right ;)</p>
<p>Well, Mikemac, you know what they say: a hundred billion here, a hundred billion there, and before you know it it adds up to real money. ;)</p>
<p>Not sure if this is a right thread to post, but I don’t want to create a new thread.</p>
<p>Seems the cascade effect on sock market is starting. News just said the JP Chase is going to bail out Bearstone with $2 per share at openning price tomorrow morning. The stock dropped down from $60 to $30 last Friday, when news come out Fed and JP Chase are going to bail out Bearstone. </p>
<p>I remember there was a thread advise parent who will take out loan for kid’s college education need to act quickly, the situation might go worse for next a few monthes.</p>
<p>Another Eron? I’m thinking about the employees at Bearstone (over 15000s?), I have a few friends work there.</p>
<p>For those parents having saved years for kid’s education, but put the money in some brokage account, will it get hit? Is there any federal law insurance for brokage account? (I know there is one for back account for about $100k).</p>
<p>^^</p>
<p>Yes, the SIPC insures up to 500,000 for each account.</p>
<p>
</p>
<p>Not Vanguard, I called them and did research on the Web. Not all brokerages are the same. My money was in Countrywide earning more than 5% and it was insured but I don’t trust them. This morning I read the NYT, it states cash is king. Don’t worry about yield at the moment.</p>
<p>Thanks to both of you. So if a bank or brokage house is a member of FDIC or SIPC, then your money is automatically insured?</p>
<p>Fortunately, my H sold all our holding last Friday and put money in money market. Now you mentioned Vanguard, as I understand it manage a lot of retirement fund for a lot of bussiness, how come they are not the member?</p>
<p>
</p>
<p>I don’t believe the money in the money market fund is insured that is why it’s important to find one that is reputable. </p>
<p><a href=“http://www.nytimes.com/2008/03/16/business/16cash.html?ex=1363406400&en=4202b4d8947b5b03&ei=5088&partner=rssnyt&emc=rss[/url]”>http://www.nytimes.com/2008/03/16/business/16cash.html?ex=1363406400&en=4202b4d8947b5b03&ei=5088&partner=rssnyt&emc=rss</a></p>
<p>“Not Vanguard”</p>
<p>Yes they are. All reputable brokerages have SIPC insurance, and most have supplementary insurance to cover amounts over 500K</p>
<p>“Account protection information
There are two levels of coverage for your assets: SIPC coverage and private insurance. Primary coverage is through the Securities Investor Protection Corporation (SIPC), a nonprofit corporation established by the U.S. Congress. Vanguard Marketing Corporation and Pershing are members of SIPC, which protects securities customers of its members up to $500,000 (including $100,000 for claims for cash). Explanatory brochure available upon request by telephone at 202-371-8300 or via SIPC’s website at [Securities</a> Investor Protection Corporation](<a href=“http://www.sipc.org%5DSecurities”>http://www.sipc.org). A private insurer provides coverage for the remainder of your account. Neither coverage protects customers against loss in the market.”</p>
<p><a href=“Manage your accounts with ease | Vanguard”>Manage your accounts with ease | Vanguard;
<p>“I don’t believe the money in the money market fund is insured that is why it’s important to find one that is reputable.”</p>
<p>It’s insured against loss. It’s not insured against fluctuations in NAV</p>
<p>^Sorry for my cryptic reply. I mean Vanguard money market is not risky. SPIC is insured is different from FDIC insurance, ie if you lose the money from money market fund, you are not guaranteed a refund like FDIC.</p>
<p>
</a></p>
<p>[What</a> Happens If Your Broker Fails? SIPC Brokerage Insurance Info My Money Blog](<a href=“http://www.mymoneyblog.com/archives/2007/11/e-trade-go-splat-basics-of-sipc-brokerage-insurance.html]What”>http://www.mymoneyblog.com/archives/2007/11/e-trade-go-splat-basics-of-sipc-brokerage-insurance.html)</p>
<p>" you lose the money from money market fund, you are not guaranteed a refund like FDIC."</p>
<p>Yes you are. "Vanguard Marketing Corporation and Pershing are members of SIPC, which protects securities customers of its members up to $500,000 <em>**(including $100,000 for claims for cash).</em>*’ Cash= MM fund</p>
<p>It’s the same as FDIC under a different program.</p>
<p>Think about it; if MM funds weren’t insured no one would invest with brokerages.</p>
<p>Money market funds usually don’t fluctuate but they can fluctuate. Market fluctuation is not guaranteed under the SPIC. For example, I had money in Fidelily Money Market fund and from what I read they do have some percentage in these so called CDI or CDO and so they are not as safe as Vanguard.</p>
<p>Thanks. I don’t mean if the money in mm acount lost because of market up or down, is insured. What I understand is like this: the money you invested in the market (hold as shares) on those brokage account is your own responsibility. The lost is not insured. But the money put in money market acount which is managed by this brokage house, if it goes bankrupted, then they are insured. Right?</p>
<p>“Market fluctuation is not guaranteed under the SPIC.”</p>
<p>That’s what I said. 
</p>
<p>Be glad you don’t own any auction rate securities. The funds are still in the accounts but investors can’t cash them out. To the best of my knowledge, that has never happened.</p>
<p>anotherNJmom, I believe the answer is yes to your question.</p>
<p>But the money put in money market acount which is managed by this brokage house, if it goes bankrupted, then they are insured. Right?"</p>
<p>Exactly :)</p>
<p>looks like the bailouts are starting. Bear Stearns already, with the Fed guaranteeing $30 billion in apparently worthless bonds so that JP Morgan would buy them. Of course if the bonds do end up having value JP Morgan gets the profit and can pay out billions more in bonuses. Bonds end up worthless, the the taxpayers eat it. Bear Stearnsdid manage to pay over $3 billion in bonuses at the end of 2007, over $4 billion the year before, and so on. So don’t worry about the fat cats, they’re ok. Maybe they’ll just relax at that place in the Hamptons till it all blows over.</p>
<p>If you’re wondering about how much this is going to cost the taxpayers, here’s Krugman in the NY Times today.
Maybe we found a way to spend that $700 billion the estate tax will raise 2011-2021, provided the Republicans don’t manage to repeal it.</p>
<p>From Matthew Yglesias in the Atlantic Monthly blog
Exactly. The rich get a free pass, everyone else takes their lumps for bad decisions. Of course we have those on this board avidly arguing to exempt the rich from taxes, let alone tax them heavily…</p>