Property Taxes have grown over 10%

Becoming a homeowner is an exciting milestone, but it comes with less glamorous baggage: property taxes.  According to a LendingTree analysis, median property taxes in the U.S. rose by an average of 10.4% between 2021 and 2023 (the latest year of available data). Property taxes vary significantly across the 50 largest metros, ranging from $1,091 to $9,937.  Across the U.S., homeowners pay a median property tax of $2,969 annually. That’s $247 a month.  Here in Bozeman, I bet it’s a fair bit higher.

Largest Trading Partners With U.S. – Global Trade Overview

The onslaught of tariffs has been widespread, affecting products from nearly every trading partner of the U.S. According to UN Trade & Development data, global trade hit a record high of nearly $33 trillion in 2024, up $1 trillion from 2023. In 2023, the United States’ top trade partners, based on combined import and export values, were Mexico, Canada, and China, with nearly $798 billion, $773 billion, and $575 billion in goods and services, respectively.

The second largest trading partner with the U.S. is ASEAN, the aggregation of South Asian Nations including Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam. Other major trading partners also saw tremendous trading activity in 2024, including Japan, Germany and South Korea.

Brief History of Tariffs – Before the implementation of income taxes, tariffs were the main source of revenue for the United States. Tariffs have been a source of revenue for the U.S. government since its inception over 200 years ago. Tariffs were initially implemented not just as a source of revenue, but also to reduce foreign competition and a growing trade deficit. Rapid expansion and the onset of industrialization in the late 1800s was achieved with the help of tariffs.

Congress ratified the 16th amendment in 1913 to initiate the collection of federal income taxes that same year, allowing the government to have consistent revenue from taxpayers while alleviating the need for elevated tariffs. Less than 1% of Americans had to pay income taxes in its earliest days. As income tax revenue increased over the decades, a reliance on revenue from tariffs gradually declined. Global trade also expanded with the U.S. as the country’s trade policies became less protectionist and more amenable to trade. (Sources: Office of the Historian, United States Department of State)

Americans Claiming Social Security Sooner – Retirement Planning

Americans are claiming their Social Security benefits earlier, rather than waiting until full retirement age. Social Security Administration data reveals that age 62 is now the most popular age for Americans to start receiving their benefits, which is also the earliest age that benefits can begin. The administration also reports that the average age for recipients is 65, and 70 is the least common age to start taking benefits.

For decades it has been suggested that Social Security recipients should not begin benefits until age 70 in order to receive the maximum benefit. There are various reasons to either take benefits sooner or later, including health, financial circumstances, work status, and tax implications.

The Financial State of Medicare – Healthcare in Retirement

Social Security and Medicare account for nearly 40% of all federal spending excluding interest on the national debt, and within a decade the Congressional Budget Office predicts that will rise to roughly half. Both programs face financial difficulty going forward, even with additional taxes, lower expenditures, or benefit cuts.  Medicare’s primary source of funding comes from payroll taxes, income from the taxation of Social Security benefits, and income from a 3.8 percent surtax on investment income of high-income individuals. An increase among these would help mitigate any depletion of funds for the program.

(Source: Social Security Administration, Centers for Medicare & Medicaid Services)