How to Avoid the Worst Fees in America
Nothing gets under the skin of a savvy consumer like unwarranted and unwanted fees.
The Web site GoBankingRates.com has put together a list of the “31 Worst Fees in America,” listing some of the most egregious fees out there, as well as tips on two avoid them. The list includes 11 banking fees, 10 travel fees, and handful of fees from other categories such as health care and cell phones.
“At the bank, while traveling, or just when going about your daily business, fees are on the rise in seemingly all industries—and not just in quantity, but in price,” writes author Paul Sisolak. “Many times, they’re so well obscured that you end up paying fees without realizing it.”
The good news is that in most cases, there’s an easy fix for the fees: Avoid bank teller fees, for example, by using remote deposit and ATMs; and steer clear of ATM fees by using your bank’s app to find the nearest in-network machine.
Related: 10 Infuriating Consumer Fees to Stop Paying Now
While bank fees may be rising, the institutions are getting better about being transparent in disclosing them. More than 60 percent of the banks reviewed last week by The Pew Charitable Trusts have adopted a summary disclosure box of terms and fees that meets the organization’s standards, up from just 25 percent in 2013.
When it comes to avoiding fees while traveling, pack light to avoid overweight bag charges and call ahead of time to get a sense of Wi-Fi and other hotel/resort fees.
Tweet of the Day: The Black Hole of Big Pharma
Billionaire John D. Arnold, a former energy trader and hedge fund manager turned philanthropist with a focus on health care, says Big Pharma appears to have a powerful hold on members of Congress.
Arnold pointed out that PhRMA, the main pharmaceutical industry lobbying group, had revenues of $459 million in 2018, and that total lobbying on behalf of the sector probably came to about $1 billion last year. “I guess $1 bil each year is an intractable force in our political system,” he concluded.
Warren’s Taxes Could Add Up to More Than 100%
The Wall Street Journal’s Richard Rubin says Elizabeth Warren’s proposed taxes could claim more than 100% of income for some wealthy investors. Here’s an example Rubin discussed Friday:
“Consider a billionaire with a $1,000 investment who earns a 6% return, or $60, received as a capital gain, dividend or interest. If all of Ms. Warren’s taxes are implemented, he could owe 58.2% of that, or $35 in federal tax. Plus, his entire investment would incur a 6% wealth tax, i.e., at least $60. The result: taxes as high as $95 on income of $60 for a combined tax rate of 158%.”
In Rubin’s back-of-the-envelope analysis, an investor worth $2 billion would need to achieve a return of more than 10% in order to see any net gain after taxes. Rubin notes that actual tax bills would likely vary considerably depending on things like location, rates of return, and as-yet-undefined policy details. But tax rates exceeding 100% would not be unusual, especially for billionaires.
Biden Proposes $1.3 Trillion Infrastructure Plan
Joe Biden on Thursday put out a $1.3 trillion infrastructure proposal. The 10-year “Plan to Invest in Middle Class Competitiveness” calls for investments to revitalize the nation’s roads, highways and bridges, speed the adoption of electric vehicles, launch a “second great railroad revolution” and make U.S. airports the best in the world.
“The infrastructure plan Joe Biden released Thursday morning is heavy on high-speed rail, transit, biking and other items that Barack Obama championed during his presidency — along with a complete lack of specifics on how he plans to pay for it all,” Politico’s Tanya Snyder wrote. Biden’s campaign site says that every cent of the $1.3 trillion would be paid for by reversing the 2017 corporate tax cuts, closing tax loopholes, cracking down on tax evasion and ending fossil-fuel subsidies.
Read more about Biden’s plan at Politico.
Number of the Day: 18 Million
There were 18 million military veterans in the United States in 2018, according to the Census Bureau. That figure includes 485,000 World War II vets, 1.3 million who served in the Korean War, 6.4 million from the Vietnam War era, 3.8 million from the first Gulf War and another 3.8 million since 9/11. We join with the rest of the country today in thanking them for their service.
Chart of the Day: Dem Candidates Face Their Own Tax Plans
Democratic presidential candidates are proposing a variety of new taxes to pay for their preferred social programs. Bloomberg’s Laura Davison and Misyrlena Egkolfopoulou took a look at how the top four candidates would fare under their own tax proposals.
