Hey, Who Took My Raise?, by Brian Nelson, CFA
For those of you that already received your first paycheck in 2013, you might be asking: Who took my raise? Or, if you’re like most Americans, your paycheck may have shrunk. Well, it turns out that the “fiscal cliff” deal that many applauded included a clause to increase the Social Security payroll tax to 6.2% from 4.2%. Though the change reverts back to the tax rate levels of 2010, according to the Tax Policy Center in Washington, it will cost the average worker about $700 per year. And for household incomes making $100,000 annually, it means $2,000 less in take-home pay. Bummer!
We’re not sweating it. To us, it means that returns on investment portfolios have become ever more important to offset the increased payroll tax. And portfolio performance (see page 8) will continue to be critical in what we believe to be a rising tax rate environment for many years to come. And while the…
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INSIDE THIS ISSUE
1 Hey, Who Took My Raise?
1 Company Spotlight: Sharps Compliance (ticker: SMED)
6 Ford Doubles Its Dividend; Another Catalyst Driving the Firm’s Shares Toward Our Fair Value Estimate (ticker: F)
7 December Auto Sales Roundup (see article for tickers)
8 Our Best Ideas Portfolio
10 Is Facebook’s Move Fundamentally Driven? (ticker: FB)
11 2013 International CES Trade Show Bodes Well for Intel (ticker: INTC)
12 We’re Holding Strong With Our Bank Exposure (see article for tickers)
13 December Retail Sales Roundup (see article for tickers)
15 Other Ideas for Your Radar
17 Featured Reports: Open Text (OTEX), Sappi (SPP), Financial Select SPDR (XLF)
20 Our Stock-Selection Methodology