Their economic policies have been unmasked. | Copyright Tomohiro Ohsumi, Getty Images
A Clinton presidency would most likely slow economic growth, while a Trump presidency would be a wild card, writes Scott Sumner, professor emeritus of economics at Massachusetts-based Bentley University. In a prepared summary on behalf of RCW Financial, Sumner writes that Hillary Clinton's tax plan contains a number of tax boosts on the rich, including increases to the top federal income tax rate, top capital gain rate and the estate tax. “These tax changes would hurt investments such as stocks, real estate and high-end collectibles,” Sumner says. Her tax changes are primarily aimed at those who save, rather than spend a lot. “Thus the effective tax rates paid by thrifty billionaires, who put most of their money into new investments, or bequests to their heirs, will be higher than the tax on billionaires who spend their fortune on lavish homes, yachts, and parties.” Trump’s plan, however, includes major tax cuts for low-income households as well as the rich. But he hasn’t proposed spending cuts in order to pay for the tax relief; in fact, he’s calling for spending boosts. “There’s a name for this sort of policy---Greece,” Sumner says. The economist also believes that if Trump’s proposals on trade and immigration are enacted, they could lead to a recession.
Billionaires at All-Time High
The number of billionaires worldwide is at an all-time high, as is their fortunes, according to the 2015-2016 Billionaire Census by Wealth-X. The data shows that the number of billionaires grew by 6.4 percent last year and now sits at 2,473 people. The combined wealth of those billionaires grew by 5.4 percent to $7.7 trillion. That's more than the GDP of every country in the world save for the United States and China, according to CommonDreams.org. Of the 148 new billionaires listed in the census, 140 were male, bringing their ranks to 2,179, compared to just 294 female billionaires. In addition, while Europe has more billionaires than North America (806 vs. 628), North American billionaires hold more wealth than Europeans ($2.6 trillion vs. $2.3 trillion). According to the census, the reason for the growth in the overall billionaire population is due to inherited wealth. "Billionaires with partially inherited wealth continue to be the fastest growing segment of this population, up 29.9% year on year, while responsible for nearly two thirds of total billionaire additions," according to the Census.
Tiedemann Wealth Management Merges With Presidio Capital Advisors
Come together.
Two large advisory firms from opposite ends of the country are joining forces. Tiedemann Wealth Management, a New York-based firm overseeing $9 billion, and Presidio Capital Advisors, a firm in San Francisco with $4 billion AUM, are combining under the TWM brand to manage the combined $13 billion from offices in both cities as well as Dallas, Palm Beach, Wilmington, Del. and Washington, D.C. TWM CEO Michael Tiedemann said the merger puts the company “on the ground in the financial, technology, energy and political centers of the U.S.” Tiedemann and Craig Smith, the president of TWM, will both maintain their roles in the combined firm.
