Flat Tax

“I didn’t subscribe for Aaron’s political opinion,” say our first contributor. “If I continue to see it, I will unsubscribe quickly!”

Certainly not throwing support behind any political party; just reporting on something top-of-mind with potential to change IRS rules.

Our next reader must really adhere to the idea of trickle-down economics:

“Yeah, tax the heck out of the wealthy; you know, the ones who provide the capital for all the rest of us. Talk about cutting off your nose to spite your face!”

Another reader says…

“The only fair tax is a flat rate tax for everybody. Top to bottom.”

Digging into the idea of a flat tax: Most recently, presidential candidate Ted Cruz — in 2016 — proposed a 10% flat tax. (It was more complicated than that but, for our purposes, we won’t belabor the point).

In 2005, Steve Forbes wrote a book called Flat Tax Revolution that called for a 17% flat tax.

Does a flat tax sound feasible — or even desirable — to you?

Your Rundown for Wednesday, Sept. 4, 2019:

Bargain Energy Stocks

Investors have shunned the energy sector this year; the upshot is shares of energy companies are the cheapest in years.

So why buy now? One reason is these stocks offer sweet dividend yields. Not only that, M&A is firing up in this sector.

One example: Blackstone Group (BX) just announced a takeover of pipeline company Tallgrass Energy (TGE). On the news, TGE shares surged 35% last week.

So with investors deserting energy stocks en masse, this might be the time to buy shares at a discount.

Some energy stocks to watch?

  • British Petroleum (BP): 6.71% dividend yield; shedding $10 billion of its assets to focus on green energy; selling Alaskan oil interests to private company Hilcorp for a cash injection of $5.6 million
  • ExxonMobil (XOM): 5.1% dividend yield; high-grade balance sheet; 5-year plan to double earnings and cash flow
  • Suncor (SU): 4.9% dividend yield; leader in the Canadian oil sands space — cheapest source of oil in North America; strong oil refining capacity
  • Schlumberger (SLB): 6.3% dividend yield; 93-year old company and the largest in the oil field services space; it’s outlived similar companies and the next time oil booms, SLB will be positioned to profit

“For investors willing to buy what others are selling,” says Investor Place, “energy stocks offer many rewards here.”

Market Rundown for Wed. September 4, 2019

S&P 500 futures are up 22 points to 2,928.16.

Oil’s up $1.74 to $55.68 for a barrel of WTI.

Gold is down $1.80 to $1,554.10 per ounce.

Bitcoin is down $201.73 to $10,419.32.

Have a good day. We’ll talk tomorrow.

For the Rundown,

Aaron Gentzler

Aaron Gentzler

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Aaron Gentzler

Aaron Gentzler is the publisher of Seven Figure Publishing. He is also the editor of The Rundown and has been with Agora Financial / Seven Figure Publishing since 2005. He's been covering technology and markets for over a decade.

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