Skip to main content

Are Skinny People Richer?


Hi All,

I was cruising the social science databases today when I came across an interesting paper on the topic of body weight and wealth. What the author, Ohio State researcher Jay Zagorsky, found was that as body weight increases, wealth declines.

Like a good scientist, Zagorsky threw the kitchen sink at his finding. He looked at a couple of different kinds of data and introduced statistical controls for income and other individual differences. After all that, Zagorsky found that individuals who lost large amounts of weight were likely to see big increases in their wealth. He also found that fatter people were less likely to get an inheritance!

So, what does all this mean? Well, its hard to say. However, the fact that he’s accounted for income suggests that social attribution bias plays a role. Social standards typically favor skinny people over obese people. So, its possible that people who are skinnier are more likely to be rewarded by parents or by businesses associates with inheritances or transactions. So, lose weight, gain wealth? You decide.

For more on Zagorsky’s research go here and here.

Best,

James

Where The 2010 Tax Increase Will Hit

Hi All,

Someone over at CNBC did a smart job crunching census data to see which states would take the hit when the White House’s fiscal 2010 increases on individuals making more than $200k comes due. In order from highest to lowest, the top five states are:

1) The District of Colombia
2) Connecticut
3) New Jersey
4) Maryland
5) Massachusetts

Of course, 2010 is a long way off. Its entirely likely that the final tax increases will look nothing like what the White House has proposed, so we’ll see what happens. If you want more details, the CNBC story is here. Perhaps most of us aren’t making that kind of cash to be affected, but is it fair that people earning more have to lose more of their wealth to taxes?
Best,

James

Is Bono A Tax Evader?

You gotta love a story like this. Evidently rock singer Bono and his band U2 have moved their music publishing business from Ireland to the Netherlands. Why? According to some, they are trying to get around taxes on music royalties. People will go to great lengths to save money on taxes, and it usually is more than worth it financially.

Click here for more coverage from the TaxProf Blog.
Best,
James

The Top Five Richest States

If you’re interested in geeking out a little bit on US income distributions, the incometaxlist.com has crunched some IRS numbers and come up with the richest states in the union.

The top five richest states are:

If you want to see how your income compares, check out their salary list. You can see how your earnings stack up to other people in your profession. The details are also broken out by city, and in some cases by town and major employer. Fun!

Best,

James

New Tax Tables Are Ready

Hi All,

Since you’re paying taxes, you might be interested to know that the IRS has prepared new withholding tables for 2009. The new tables reflect the changes to the code as part of the Making Work Pay Credit. Click here.

For most people you don’t have to do anything, just enjoy the benefits of marginally lower tax rates. But if you really want to save more money on taxes, you might want to send a letter to your representative telling them that.

Best,

James

Tax Refund Anticipation Loans are a Ripoff

Hi All,

Its another ridiculously busy day here in DC. At the moment I’m getting some class reading finished up so there won’t be time for a full length substantive posting.

However, here is a very good video by money talks news. They’ve done a quick expose on tax return refund anticipation loans. In case you don’t know what a refund anticipation loan is, its a high-profit, low-risk loan typically marketed towards the working poor. These products have been heavily criticized by consumer advocacy groups as a form of modern loan sharking, as they are not the best products for long-term wealth generation, which is something the working poor desperately need for a brighter future. I agree.

Check out the video.

Sold My Shares in Citigroup

Hi All,

Well, thats another bunch of dollars down the drain. I just hit the sell button on my shares of Citigroup. After buying in at $19 dollars and selling at $2.75, I’ve officially taken a loss of $1,135.

Maybe I’ve been listening to bad news mongers too much recently, but I’ve reached the conclusion that there are likely to be several more months of uncertainty ahead of the markets. Congress is spending money like a drunken sailor, the FED is saying that its going to be at least until 2010 before things improve and the Whitehouse is seriously considering bank nationalization.

Now is NOT the time to hold highly speculative stocks in ones portfolio. If you want to build wealth, play it safe for now and only invest in solid companies.

Best,

James

Got GLD?

Hi All,

Rather than write an essay, I’ll just note that the DOW is down and gold is up! I think thats a pretty good summary of where things stand financially these days.

Happy Wednesday!

Quote Of the Day – Born To Win

It takes courage to be a winner – not a winner in the sense of beating out someone else by always insisting on coming out on top- but a winner at responding to life. It takes courage to experience the freedom that comes with autonomy, courage to accept intimacy and directly encounter other persons, courage to take a stand for an unpopular cause, courage to choose authenticity over approval and to choose it again and again, courage to accept the responsibility for your own choices, and, indeed, courage to be unique person that you really are“.

– Muriel James and Dorothy Jongeward

From – Born To Win: Transactional Analysis for Gestalt Experiments

You cannot copy content of this page