#50 US Proposes Minimum Billionaire Income Tax Rate
And Corporate Tax Rate of 28%
And just like that welcome to the 50th edition of Business News for Kids 🙇♂️. Whole lot of ‘Wait whats’ to make you remember why we’re so valuable 😅 + don’t miss our special 50th edition inspiring business person 🇺🇦 that we all have much to learn from.
Busy business this week 💼
US 🇺🇸 President Biden proposed introduction of a minimum billionaire income tax of 20% applicable on households making more than $100 million per year, including earnings in unrealised capital gains. The highest tax slab is also proposed to increase to 39.6% from 37%.
The 2023 Fiscal Budget also proposed to increase corporate tax from 21% currently to 28% 😱; but as a result of it, aims to reduce Fiscal Deficit by $1.3 Trillion. The US government’s Fiscal Deficit was a whopping $2.77 Trillion in 2021 📈.
And to bring some control to rising Oil & Gas prices, the US government will release 1 million barrels of oil 🛢 per day from its strategic reserves. Remember Demand and Supply? More supply = ?? 📉 👈 hint.
While the government is busy trying to shore up revenues, others aren’t far behind 🥷 - in the largest ever crypto hack, hackers stole $625 million worth of crypto currency Ethereum from the Ronin Network that runs a crypto currency based video game 🎮 services.
And this author 📚 was trying to raise $1 million but ended up with $41 million 🤷😅. Sci-Fi author Brandon Sandersons’s crowd funding kickstarter campaign to write four new self-published novels was targeting $1 million but raised $41.7 million from 185,000 backers - becoming the most successful kickstarter campaign ever. The previous best was $20.3 million by smart watch ⌚️ maker Pebble in 2015.
Wait, what is..
Unrealised Capital Gains: Capital Gains as gains or profits on capital assets like homes and stocks. Unrealised Capital Gains refer to gains that are not “realised” i.e. you have not yet sold your home or your stocks, even though they have increased in value hence they are “unrealised”. Discuss with mom, dad or a big person if it is fair to tax unrealised gains.
Fiscal Budget: The word ‘fiscal’ typically refers to a government’s revenue and spending plan, that is largely controlled by tax policies. The Fiscal Budget refers to the governments plan in a year.
Corporate Tax: Income tax paid by companies 🏦.
Fiscal Deficit: Difference between a governments’ revenue and spending. A deficit implies that a government spends more than revenue it makes. For e.g. in 2021 the US government made revenue of $4.05 Trillion but spent $6.82 Trillion, hence making a ‘deficit’ of $2.77 Trillion. Reducing deficit is a important goal for governments.
Inspiring business people to know 🙏
Meet Volodymyr Zelenskyy, the President of Ukraine 🇺🇦 and our inspiring business person of the week.
Volodymyr Oleksandrovych Zelenskyy, is the 6th, and serving, President of Ukraine. A graduate of Kyiv National Economic University, Mr. Zelensky went on to become a comedian and actor starring in several movies and TV shows. In 2003 he founded a production studio, Kvartal 95, that went on to create several hit shows like Servant of the People - a fictional show starring Zelensky as a high school history teacher who becomes the president of Ukraine. The popularity of the show that aired from 2015 to 2019 led to Zelensky becoming the real President of Ukraine 🤷. And we’re glad he has been an inspiring one at that 🙇.
About BNFK
Knowledge is at the heart of being. To be more, we must know more.
BNFK distills the latest, most interesting, Business News 📰 .. to an emoji filled, ultra informative, and fun Newsletter for Kids. Delivered every Sunday. Previous editions here. Forwarding this? Ask them to hit 👇 & subscribe for FREE.
Stocks, stonks and.. ⚡️
EV maker Tesla announced on Saturday that it has delivered a record number of 310,048 vehicles for its Q1 2022. Watch that stock on Monday 🏎
While rival EV SUV maker Rivian asked for patience from investors after it produced just 1410 vehicles for the year 2022 (till March). Stock prices have plummeted to $46.44 from a high of $172 just after its IPO in November 2021.
Mental models.. whaaaat! 🤯
My dad insisted we put this section in here, even though I protested saying its going to be a while before kids need to apply mental models. Mental models are nothing but ways of thinking, you can use as a framework, to take decisions or solve problems. Who knows, they might just be useful!
Counterinsurgency or Countering an Insurgency - An insurgency is an attempt to overthrow a legitimate government by political or military means. Like Russia's attempt to topple the Ukrainian Government.
While counterinsurgency is defined as "military, paramilitary, political, economic, psychological and civic actions taken by a government to defeat insurgency." Like economic actions and sanctions being taken by western nations against Russia. Counterinsurgency means typically aim to win without bloodshed, through smarter, even covert i.e. spy stuff, means.
In business we can think of beating competition without bleeding our own cash, through smarter tactics that help weaken competition - like making a 10x better product that needs no marketing 😆.Read a much more detailed account of Counterinsurgency as a mental model on Farnam Street’s blog here.
Tech, products, toys ++ 🤖
Personal transport device maker Segway just released a blazing fast eScooter with its GT line that can zip 0-30 mph in 30 seconds and hit a top speed of 43 mph (~70 kmph) - thats fast for a 🛴👇
Pro Tip: The magic of learning is in curiosity. Don’t shy away from clicking those hyperlinked texts to read and learn more. We mostly hyperlink to text we have read ourselves to make sure it is safe, but please be aware that comments and ads shown on these pages are beyond our control. We recommend using a kids friendly browser to view the links. Please read all Disclaimers.
Take care. See you next week. Pray for Ukraine and for Russian citizens. 🙏