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What do investment bankers do? – Yahoo Canada Finance

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The Canadian Press

School survey shows ‘critical gaps’ for in-person learning

Nearly half of U.S. elementary schools were open for full-time classroom learning as of last month, but the share of students with in-person instruction has varied greatly by region and by race, with most nonwhite students taught entirely online, according to a Biden administration survey. For the White House, the results of the national survey released Wednesday mark the starting line for President Joe Biden’s pledge to have most K-8 schools open full time in his first 100 days in office. But they also show that he never had far to go to meet that goal. Among schools that enrol fourth graders, 47% offered full-time classroom learning in February, while for schools that teach eighth-graders, the figure was 46%. The results suggested that at least some students weren’t opting in. In total, about 76% of elementary and middle schools were open for in-person or hybrid learning, according to the survey, while 24% offered remote learning only. The percentage of students spending at least some time in the classroom has probably increased since February, when coronavirus rates were just coming down from a national surge. Education Secretary Miguel Cardona said the findings, while encouraging, also showed “critical gaps” for in-person learning, especially for students of colour. “While schools continue to show us what’s possible as they work to open their doors and meet students’ needs, we know that we still have a lot of ground to go,” Cardona said. “We owe it to our students — especially students in underserved communities and students with disabilities — to get all our schools opened safely and to meet the social, emotional, mental health and academic needs of all students.” Before Wednesday’s school reopening summit, the administration announced it was releasing $81 billion in education assistance from the $1.9 trillion virus relief bill. The survey findings establish a baseline data set that the administration plans to update each month to show how many U.S. schools are teaching in-person, online or through a combination. The government did not previously collect such information. The findings are based on a survey of 3,500 public schools whose student bodies include fourth graders, along with 3,500 schools that serve eighth graders. Forty-four states agreed to participate; six states declined. The survey asked schools about their teaching methods as of February but gathered other data as of January. The survey casts new light on a period of particularly bitter debate in the school reopening process. In January, officials in California, Chicago and other places were in stalemates with teachers over reopening plans,. Vaccinations were often a sticking point. Since January, the push to reopen has gained steam in many areas. The Centers for Disease Control and Prevention issued a road map to reopening in February. This month, the CDC relaxed guidelines around social distancing in schools. Under pressure from Biden, dozens of states are now focusing on giving COVID-19 vaccines to teachers and other school staff. As more schools invite students back to the classroom, many parents are conflicted, according to a poll from The University of Chicago Harris School of Public Policy and The Associated Press-NORC Center for Public Affairs Research. It found that a majority of parents are at least somewhat concerned that in-person instruction will lead to more people being infected, but a slightly larger share is at least somewhat concerned that students will face setbacks in school because of the coronavirus pandemic. In addition to tracking school teaching methods, the federal survey also tracks how many students have enrolled in each type of learning. In January, the survey found, 38% of fourth graders enrolled in full-time, in-person learning, compared with 28% of eighth graders. Larger shares of students were entirely remote, with 43% of fourth graders and 48% of eighth graders learning away from school. It was not clear what share was learning online by choice and how many students were in schools without in-person options. There were stark differences based on where students live, reflecting the regional battles that have played out as cities debate how and when to reopen schools. In the South and Midwest, where schools were the quickest to reopen, just under 40% of eighth grade students were enrolled full time in classroom instruction in January. In the West and Northeast, the figure was about 10%. Across all regions, students in rural areas and towns were far more likely to be back in the classroom full time compared with students in cities and suburbs. In a further illustration of the pandemic’s uneven impact, the survey found striking differences based on students’ race. Among fourth graders, almost half of white students were learning fully in-person, with just over one-quarter learning online. Among Black and Hispanic students, nearly 60% were learning entirely remotely. The difference was even wider among students of Asian descent, with 68% remote and just 15% attending fully in-person. Similar disparities have been uncovered in many cities, raising alarms among education advocates who fear the pandemic is worsening racial inequities in education. The administration has pledged to confront racial gaps in education and is urging schools to prioritize the issue as they spend the billions in recently approved relief aid. As of January, the survey also found that students with disabilities and those who are learning English were not being brought back to the classroom at significantly higher rates than other students. Just 42% of those with disabilities and 34% learning English were enrolled in full-time classroom learning, compared with 38% of all students. Even so, more than 40% of schools reported on the survey that they were giving priority to students with disabilities, who often have more difficulty with remote learning. Among students learning online, the amount of time spent with a live teacher also varied greatly, the survey found. Roughly one-third of schools offered more than five hours a day of live instruction, but another third offered two hours or less. Among schools serving eighth graders, 10% were offering no live instruction at all. The survey does not include high schools, which weren’t included in Biden’s reopening promise and pose additional challenges as they work to reopen. Younger children are less likely to get seriously ill from the coronavirus, and education experts say they have the greatest need for in-person learning. The Education Department said it will issue updated data from the survey each month through July. The information is published on a dashboard on the agency’s website. Collin Binkley, The Associated Press

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Taxes should not wag the tail of the investment dog, but that’s what Trudeau wants

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Kim Moody: Ottawa is encouraging people to crystallize their gains and pay tax. That’s a hell of a fiscal plan

The Canadian federal budget has been out for a week, which is plenty of time to absorb just how terrible it is.

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The problems start with weak fiscal policy, excessive spending and growing public-debt charges estimated to be $54.1 billion for the upcoming year. That is more than $1 billion per week that Canadians are paying for things that have no societal benefit.

Next, the budget clearly illustrates this government’s continued weak taxation policies, two of which it apparently believes  are good for entrepreneurs. But the proposed $2-million Canadian Entrepreneurs Incentive (CEI) and $10-million capital gains exemption for transfers to an employee ownership trust (EOT) are both laughable.

Why? Well, for the CEI, virtually every entrepreneurial industry (except technology) is not eligible. If you happen to be in an industry that qualifies, the $2-million exemption comes with a long, stringent list of criteria (which will be very difficult for most entrepreneurs to qualify for) and it is phased in over a 10-year period of $200,000 per year.

For transfers to EOTs, an entrepreneur must give up complete legal and factual control to be eligible for the $10-million exemption, even though the EOT will likely pay the entrepreneur out of future profits. The commercial risk associated with such a transfer is likely too great for most entrepreneurs to accept.

Capital gains tax hike

But the budget’s highlight proposal was the capital gains inclusion rate increase to 66.7 per cent from 50 per cent for dispositions effective after June 24, 2024. The proposal includes a 50 per cent inclusion rate on the first $250,000 of annual capital gains for individuals, but not for corporations and trusts. Oh, those evil corporations and trusts.

There is a lot wrong with this proposed policy. The first is that by not putting individuals, corporations and trusts on the same taxation footing for capital gains taxation, the foundational principle of integration (the idea that the corporate and individual tax systems should be indifferent to whether an investment is held in a corporation or directly by the taxpayer) is completely thrown out the window. This is wrong.

Some economists have come out in strong favour of the proposal, mainly because of equity arguments (a buck is a buck), but such arguments ignore the real world of investing where investors look at overall risk, liquidity and the time value of money.

If capital gains are taxed at a rate approaching wage taxation rates, why would entrepreneurs and investors want to risk their capital when such investments might be illiquid for a long period of time and be highly risky?

They will seek greener pastures for their investment dollars and they already are. I’ve been fielding a tremendous number of questions from investors over the past week and I’d invite those academics and economists who support the increased inclusion rate to come live in my shoes for a day to see how the theoretical world of equity and behaviour collide. It’s not good and it certainly does nothing to help Canada’s obvious productivity challenges.

Of course, there has been the usual chatter encouraging such people to leave (“don’t let the door hit you on the way out,” some say) from those who don’t understand basic economics and taxation policy, but these cheerleaders should be careful what they wish for. The loss of successful Canadians and their investment dollars affects all of us in a very negative way.

The government messaging around this tax proposal has many people upset, including me. Specifically, it is the following paragraph in the budget documents that many supporters are parroting that is upsetting:

“Next year, 28.5 million Canadians are not expected to have any capital gains income, and 3 million are expected to earn capital gains below the $250,000 annual threshold. Only 0.13 per cent of Canadians with an average income of $1.4 million are expected to pay more personal income tax on their capital gains in any given year. As a result of this, for 99.87 per cent of Canadians, personal income taxes on capital gains will not increase.” (This is supposedly about 40,000 taxpayers.)

Bluntly, this is garbage. It outright ignores several facts.

For one thing, there are hundreds of thousands of private corporations owned and controlled by Canadian resident individuals. Those corporations will be subject to the increased capital gains inclusion rate with no $250,000 annual phase-in. Because of the way passive income is taxed in these Canadian-controlled private corporations, the increased tax load on realized capital gains will be felt by individual shareholders on the dividend distribution required to recover certain refundable corporate taxes.

Furthermore, public corporations that have capital gains will pay tax at a higher inclusion rate and this results in higher corporate tax, which means decreased amounts are available to be paid out as dividends to individual shareholders (including those held by individuals’ pensions).

The budget documents simply measured the number of corporations that reported capital gains in recent years and said it is 12.6 per cent of all corporations. That measurement is shallow and not the whole story, as described above.

Tax hit for cottages

There are also millions of Canadians who hold a second real estate property, either a cottage-type and/or rental property. Those properties will eventually be sold, with the probability that the gain will exceed the $250,000 threshold.

Upon death, an individual will often have their largest capital gains realized as a result of deemed dispositions that occur immediately prior to death. This will have the distinct possibility of capital gains that exceed $250,000.

And people who become non-residents of Canada — and that is increasing rapidly — have deemed dispositions of their assets (with some exceptions). They will face the distinct possibility that such gains will be more than $250,000.

The politics around the capital gains inclusion rate increase are pretty obvious. The government is planning for Canadian taxpayers to crystallize their inherent gains prior to the implementation date, especially corporations that will not have a $250,000 annual lower inclusion rate. For the current year, the government is projecting a $4.9-billion tax take. But next year, it dramatically drops to an estimated $1.3 billion.

This is a ridiculous way to shield the government’s tremendous spending and try to make them look like they are holding the line on their out-of-control deficits. The government is encouraging people to crystallize their gains and pay tax. That’s a hell of a fiscal plan.

There’s an old saying that tax should not wag the tail of the investment dog, but that is exactly what the government is encouraging Canadians to do in the name of raising short-term taxation revenues. It is simply wrong.

I hope the government has some second sober thoughts about the capital gains proposal, but I’m not holding my breath.

 

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Everton search for investment to complete 777 deal – BBC.com

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Everton are searching for third-party investment in order to push through a protracted takeover by 777 Partners.

The Miami-based firm agreed a deal to buy the Toffees from majority owner Farhad Moshiri in September, but are yet to gain approval from the Premier League.

On Monday, Bloomberg reported the club’s main financial adviser Deloitte has been seeking fresh funding from sports-focused investors and lenders to get 777’s deal over the line.

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BBC Sport has been told this is “standard practice contingency planning” and the process may identify other potential lenders to 777.

Sources close to British-Iranian businessman Moshiri have told BBC Sport they remain “working on completing the deal with 777”.

It is understood there are no other parties waiting in the wings to takeover should the takeover fall through and the focus is fully on 777.

The Americans have so far loaned £180m to Everton for day-to-day operational costs, which will be turned into equity once the deal is completed, but repaying money owed to MSP Sports Capital, whose deal collapsed in August, remains a stumbling block.

777 says it can stump up the £158m that is owed to MSP Sports Capital and once that is settled, it is felt the deal should be completed soon after.

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Warren Buffett Predicts 'Bad Ending' for Bitcoin — Is It a Doomed Investment? – Yahoo Finance

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Currently sitting in sixth on Forbes’ Real-Time Billionaires List, Berkshire Hathaway co-founder, chairman and CEO Warren Buffett is a first-rate example of an investor who stuck to his core financial beliefs early in life to become not only a success but a once-in-a-lifetime inspiration to those who followed in his footsteps.

One of the most trusted investors for decades, the 93-year-old Buffett isn’t shy to pontificate on his investment philosophy, which is centered around value investing, buying stocks at less than their intrinsic value and holding them for the long term.

Read Next: Warren Buffett: 6 Best Pieces of Money Advice for the Middle Class
Find Out: 5 Genius Things All Wealthy People Do With Their Money

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He’s also quite vocal on investments he deems worthless. And one of those is Bitcoin.

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Buffett’s Take on Bitcoin

Over the past decade, it’s been clear that the crypto craze isn’t something Buffett wants any part of. He described Bitcoin as “probably rat poison squared” back in 2018.

“In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending,” Buffett said in 2018. And his stance hasn’t wavered since. According to Benzinga, Buffett believes that cryptocurrencies aren’t a viable or valuable investment.

“Now if you told me you own all of the Bitcoin in the world and you offered it to me for $25, I wouldn’t take it because what would I do with it? I’d have to sell it back to you one way or another. It isn’t going to do anything,” Buffett said at the Berkshire Hathaway annual shareholder meeting in 2022.

Although the Oracle of Omaha has his misgivings about the unpredictable investment, does that mean crypto is doomed as an investment? Not necessarily.

For You: 10 Valuable Stocks That Could Be the Next Apple or Amazon

Is Buffett Wrong About Bitcoin?

Bitcoin bulls argue that while it’s not government-issued, cryptocurrency is as fungible, divisible, secure and portable as fiat currency and gold. Because they occupy a digital space, cryptocurrencies are decentralized, scarce and durable. They can last as long as they can be stored.

Crypto boosters continue to predict massive growth in the coin’s value. Earlier this year, SkyBridge Capital founder and former White House director of communications Anthony Scaramucci told reporters that Bitcoin could exceed $170,000 by mid-2025, and Ark Invest CEO Cathie Wood predicts Bitcoin will hit $1.48 million by 2030, according to Fortune.

“They really don’t understand the concept and the whole history of money,” Scaramucci said of crypto critics like Buffett on a recent episode of Jason Raznick’s “The Raz Report.” Because we place a value on “traditional” currency, it is essentially worthless compared with the transparent and trustworthy digital Bitcoin, Scaramucci said.

Currently trading around the $66,000 mark, Bitcoin is up nearly 50% in 2024. This means it’s massively outperforming most indexes this year, including the S&P 500, which is up about 6% in 2024.

Although Berkshire Hathaway has invested heavily in Bitcoin-related Brazilian fintech company Nu Holdings, which has its own cryptocurrency called Nucoin, it’s possible Buffett will never come around fully to crypto, despite its recent surge in value. It’s contrary to the reliable investment strategy that has served him very well for decades.

“The urge to participate in something where it looks like easy money is a human instinct which has been unleashed,” Buffett said. “People love the idea of getting rich quick, and I don’t blame them … It’s so human, and once unleashed you can’t put it back in the bottle.”

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This article originally appeared on GOBankingRates.com: Warren Buffett Predicts ‘Bad Ending’ for Bitcoin — Is It a Doomed Investment?

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