A Walk Down History – Taxes, Investments, and the Changing Landscape – 05/17/2025
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The episode opens with a market update highlighting a strong week and the S&P being positive year-to-date. A warning is shared about a sophisticated bank fraud scam attempt, with advice to keep low bank balances. The main discussion traces the history of federal taxation since the 16th Amendment in 1913, noting the dramatic decline from 94% peak rates during WWII. The growth of government spending, leading to deficits and increasing national debt, is also covered. The evolution of the investment landscape is explored, detailing the introduction of IRAs (1975), Indexing (1975), 401ks (1978), and Roths (1998). The impact of high taxes on products like limited partnerships, regulation like Sarbanes-Oxley, and the shift to advisory fees/asset charges are discussed. The complexity of modern investing and the need to understand total costs are emphasized. A question on government leverage is also answered.