Marginal cost – 6 Toros 6 Sat, 25 Sep 2021 07:46:33 +0000 en-US hourly 1 Marginal cost – 6 Toros 6 32 32 Why Interest on Bank Deposits of Some Seniors Should Be Tax Free Sat, 25 Sep 2021 07:46:33 +0000

Real interest rates have turned negative in India (meaning the interest rate is lower than inflation), as happened in the United States and Europe a few years ago. This has created a lot of problems for savers, especially the elderly, many of whom have kept most of their money safe with banks. If they have no other income, they would permanently struggle to cope with the double impact of low interest income and rising inflation, eroding their savings.

Economists call it financial repression. The financial crackdown is here to stay because large sections of the population – mortgage borrowers, banks, businessmen, investors in risky assets like stocks and real estate – all have a vested interest in staying weak because they all benefit.

However, it is the savings with the banks which is an important fuel for the economy. By depriving savers of a fair interest income which we wish to build the prosperity for borrowers and investors alike, it is only right that such benefits of financial repression be shared with depositors who are cheated with debts. negative interest rates.

One way to do this is to give tax relief on interest earned, especially by older people who have no other income or insignificant income.

In the total term deposits of the banking sector, the contribution of 40 million and more of the elderly, who remain very dependent on accrued interest income to cover most of their fixed expenditure needs, hovers around 20%. Although some banks are offering an incremental rate of 25 to 50 basis points (bps) to this vulnerable class, the pressure to keep deposit rates low to accommodate loan pricing is reducing their yield.

Many bankers agree that there is a need to rethink and exempt seniors from tax on interest earned on deposits. Not all of the country’s seniors are retired civil servants receiving a large pension. What these retirees have is money paid in taxes, saved and then deposited into banks and government plans. The majority of these seniors depend entirely on the interest income earned from these savings and deposits. If the lower returns are not enough, they are required to pay income tax on the interest earned. This not only leaves them high and dry, but sometimes even their deposit capital erodes.

Dr Anil Khandelwal, former chairman of the Bank of Baroda (BoB), agrees that seniors should be exempt from income tax on interest on their deposits. He said, “I find this proposition absolutely correct. With the attractiveness of bank deposits declining in an inflationary scenario, funds are being diverted to many risky corporate bonds and stock markets. The elderly are the worst victims, who are persuaded to divert their funds into risky investment avenues.

Earlier in April this year, the State Bank of India (SBI), in a report, suggested that the Union government seek to provide full tax exemption on the Seniors Savings Scheme (SCSS) and help the elderly to build up some sort of social security. . “The February 2020 outstanding under SCSS was Rs73,725 crore.

If the amount receives a full tax refund or up to a certain threshold, it will have minimal impact on the treasury, ”the report said.

Delhi-based Right to Information (RTI) activist Subhash Chandra Agrawal believes that even the interest charged by special schemes for the elderly, including the Savings Scheme for the Elderly (SCSS) and the Prime Minister Vay Vandana Yojna and RBI bonds should also be tax exempt.

“The Union government should also introduce a unified savings scheme for seniors available in all bank branches merging the existing SCSS and Prime Minister Vay Vandana Yojna with a combined maximum investment limit of Rs50 lakh,” said he declared.

Earlier this week, in a report, the SBI pointed out that the real rate of return on bank deposits has been negative for quite a long time. “We believe that now is the time to review the taxation of interest on bank deposits, or at least increase the exemption threshold for the elderly,” he said, adding that “The Reserve Bank of India ( RBI) can also give a makeover to regulations that do not allow bank interest rates to be determined based on age demographics. ”

Further, although there are no restrictions by the RBI on benchmarking loans against the previous marginal cost of the funds-based lending rate (MCLR) and banks are free to use n Any benchmark published by Financial Benchmarks India Pvt Ltd (FBIL), the continued restrictions on not allowing a negative spread on MCLR may also be removed.

G Jaganmohan Rao, former Managing Director (MD) of Bank Note Paper Mill India Pvt Ltd, points out that the deposit tax ruling is a tax ruling. “What the RBI may suggest is that due to the declining negative interest rate on household savings, citizens are investing in financial assets, real estate companies, gold, some of which are not. are not included in household savings category. Bank deposits are the last bastion to hold your savings due to RBI and Deposit Insurance & Credit Guarantee Corporation (DICGC) regulations at least so far. ”

“In the absence of a credible social security system like in the United States, Europe, the elderly or retirees in India have to fend for themselves, including health insurance, which is prohibitive for the elderly because insurance companies almost exclude them from coverage. Negative interest in such people is, in fact, like a head tax for living beyond an age. The government should either remove the income tax on deposit interest for them or offer them positive inflation-adjusted rates by instructing the RBI and the banks, ”said Mr. Rao, who was also a director. Principal General (PCGM) within the banking supervision department of RBI.

According to Dr Nita Mukherjee, a retired development banker, the low interest rate regime has taken its toll on people’s retirement planning. “Even government pensions, as well as the cost allowance (DA) that government employees receive, are regularly revised upwards. They are also not affected by escalating medical expenses because their health care system government (CGHS) is almost free. why the bureaucracy is so insensitive to real demands for interest rate protection for non-government officials as well as the lack of withholding tax (TDS) on bank deposits and plans for the elderly. ”

“We as seniors are the most affected. Because of (TDS) we have less spending money, and the long wait for tax refunds makes life even more difficult. Compliant taxpayers like us don’t make false statements 3pm, so we have to claim the tax refunds, ”she added.

According to the SBI, around 44% of bank deposits in the banking sector, with a little tolerance on both sides for the big banks, constitute a current account savings account (CASA), with current accounts representing around one fifth of this compartment.

SBI estimates the total number of depositors in the banking system at around 207 crore, the number of creditors is at 27 crore. All bank deposits at Rs151 lakh crore constitute Rs102 lakh crore of retail deposits including senior citizens.

“Obviously, the real rate of return on bank deposits has been negative for quite a long time, and the RBI having made it clear that supporting growth is the primary objective, the low rate of return is unlikely to be. bank interest is making a move north anytime soon. liquidity continues to be plentiful, “the report adds.Read: Excess liquidity and pricing of credit risk. Are we doing enough, asks SBI)

Earlier this month, the Central Commission on Direct Taxes (CBDT) notified a new rule that requires people over the age of 75 to submit Form 12BBA to claim the benefit of not filing a tax return ( ITR) under section 194P.

Under section 194P, the TDS is only deductible for people over 75 years of age. These seniors must submit an income tax return in the form 12BBA to the specified bank as notified by the Union government. The statement contains information such as total income, details of deductions under section 80C to section 80U, reimbursement available under section 87A and a statement confirming receipt of income only from the pension. and interest. (Read: People over 75 must submit Form 12BBA to be exempt from filing RTI)

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Should I trigger capital gains tax now – or wait until I’m gone? Fri, 24 Sep 2021 22:00:00 +0000

My wife and I are in the early 1970s and have significant unrealized capital gains in our joint investment account. Is it advisable for us to cash in our winnings now and pay tax, or should we wait until we both die, when others will? The purpose of the sale now would be to minimize the significant amount that the Canada Revenue Agency will demand from the executor of our estate. We would then reinvest the net proceeds in similar dividend paying stocks to continue to fund our retirement lifestyle. We could repeat this exercise in 20 years if luck is still on our side.

I can understand why you might see some interest in triggering capital gains now instead of waiting for you to go. Even though only half of capital gains are currently included in income, your estate could end up paying a large chunk of tax at your highest marginal rate if all of your accrued gains end up on your return at the same time. final income.

However, in most cases it is always better to wait.

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“That’s a classic question,” said Jamie Golombek, head of tax and estate planning at CIBC Private Wealth, in an email.

“The short answer is that it rarely makes sense, for tax reasons alone, to crystallize capital gains and voluntarily pay taxes today, rather than paying them later – especially if your intention is simply to redeem. the same actions. “

There are several reasons why the wait might be more beneficial. A key consideration is that, depending on how long you and your spouse live, it could be decades before the earnings in your portfolio are taxed.

When a person dies, the “deemed disposition” rules in the Income Tax Act treat the person’s property as if it had been sold and the capital gains realized. However, couples benefit from a break in this regard: if the shares are bequeathed to a surviving spouse or partner, the latter can become the owner of the assets at their original cost base, which defers the capital gain until the end of the period. ” on the death of the spouse or sells the shares.

“So unless you need the capital from the sale of the stocks to fund your retirement lifestyle (rather than living off the dividend income from those stocks), defer realizing the capital gains for that long. as possible may make sense – assuming you are comfortable with the stock selection itself, ”Mr. Golombek said.

It is also important to consider the potential reduction in government benefits if you were to realize capital gains, which would increase your income during your lifetime.

“You really need to compare your effective marginal tax rate today to the expected rate in the year of death, bearing in mind that if you realize capital gains in a particular tax year, it may result in loss of income-tested benefits. – like Old Age Security, Guaranteed Income Supplement or the Age Amount Credit – during those years, which could result in a higher effective marginal tax rate, ”Mr. Golombek.

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Another important consideration is that if you trigger capital gains early and pay tax, you will have less net capital available to invest, potentially for many years. This will not only reduce your dividend income during your lifetime, but it will also most likely reduce the growth of your portfolio and the eventual value of your estate.

Whether the tax savings will make up for the lost investment opportunity depends on many factors, including your current and future tax rates, the rate of return on your portfolio, and the lifespan of you and your wife. , said Golombek. Any increase in the capital gains inclusion rate – which was one of the New Democratic Party’s campaign proposals – would also be included in the decision.

Mr. Golombek suggests that you meet with a financial professional who can calculate the numbers based on your age, income, rates of return, size of estate, health, and expected longevity. to see if paying taxes prematurely makes sense for you.

“In my experience, this is rarely the case,” he said.

I have considered simplifying my portfolio by reducing the number of stocks I own and switching to more exchange traded funds. I’ve looked at several of them, like iShares Core Growth ETF Portfolio (XGRO), BMO Growth ETF (ZGRO), and Horizons Growth TRI ETF Portfolio (HGRO), each of which is essentially a “fund of funds”. The management expense ratio quoted for these ETFs is quite low, but I wonder if the figure quoted also takes into account the MERs of the underlying funds.

When you invest in an ETF that owns other ETFs, you only pay the MER of the fund that you own directly. Securities laws prohibit fund companies from doubling expenses.

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For example, XGRO owns eight other equity and bond index ETFs, with MERs ranging from 0.03% to 0.22%. You would only pay XGRO’s MER of 0.20%, which includes the annual management fee of the fund, administration fees, marketing, taxes and other expenses.

Email your questions to I am not able to respond to e-mails personally, but I choose certain questions to answer in my column.

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Can we use a company car for personal use? Fri, 24 Sep 2021 08:43:47 +0000

One of the perceived benefits of running your own business is the ability to provide you with a company car, with all running costs and depreciation covered by your business.

In reality, it is not that simple and even taking your company car on the shortest route for personal reasons will make you pay additional personal taxes via a benefit in kind, writes accountant Helen Christopher, director of operations at Orange Genie.

Company cars: more taxing than it looks

Unfortunately, in the eyes of HMRC, personal trips include commuting to and from work. This means that using your company car for commuting, shopping at stores, or dropping the kids off at school will require you to pay taxes for the privilege of using the car.

The company car tax is based on three factors:

  1. Manufacturer’s list price, VAT, delivery charges and optional extras included.
  2. The amount of C02 emissions produced by the car
  3. Your personal tax bracket (i.e. 20% or 40%).

How to calculate the tax on company cars

To calculate your tax payable, take the value of your car and multiply it by the company car tax rate for your car’s given emissions.

You will thus benefit from your in-kind benefit rate, which you will then multiply by your marginal tax rate. This tax burden is an annual charge and not just once at the point of purchase. It is therefore important to take this into account when deciding how to finance your next car.

Simply put, the more expensive your car and the higher the emissions, the more tax you will pay. So if you are looking to minimize the tax cost of a company car, consider lowering your car’s value, your emissions, or even consider “going green” and embracing electric technology where the in-kind benefits are high. much lower.

Fuel temptations

Are you tempted to charge your company for all the fuel for your vehicle? Be aware that personal use of the car then triggers an additional benefit in kind on fuel costs which can add a significant amount to your tax bill!

However, paying for your own fuel and collecting business miles will lower your tax bill. Electricity is not considered a fuel in the same way as gasoline or diesel, so again opting for an electric car will reduce your in-kind benefit.

Can the company car tax be avoided?

The only way to be exempt from company car tax is to avoid using your company car for private travel.

To do this successfully, you will need to leave your vehicle in your work premises overnight and on weekends, to be used only for business purposes. For many entrepreneurs, all of this is inconvenient and does not negate personal car ownership.

But you might consider registering the car as a “pool car”, that is, it stays in the workplace overnight and on weekends, and is shared by other employees for business travel. Again, this can always mean that you need a personal vehicle for family and everyday life!

Interestingly, if the company vehicle has been adapted for “Mobility” reasons, the company car tax will not be due. But be careful because these exemptions will only apply to a small minority.

Take a company van instead …

The tax liability on a company van is calculated very differently from a car. The tax is based on a flat rate of £ 3,150 which is then applied to your personal tax rate. So, for example, a base rate taxpayer will pay 20% tax of £ 3,150, or £ 630 per year or £ 52.50 per month.

This tax may be further reduced if one of the following conditions applies:

  • You cannot use the van for 30 consecutive days
  • You pay your business to use the van privately
  • Other employees use the van

Taxman took note, so you must also

If you are considering a company car, it is worth talking to your accountant to consider all of the options. Once viewed as a job perk, HMRC has steadily increased the tax cost of this “perk” over the past 10 to 15 years, so making sure you understand all the potential pitfalls is critical.

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Why is the feud over the future of Irish pensions so important? Thu, 23 Sep 2021 17:18:37 +0000

Big decisions are ahead on Irish pension policy, with important implications for national finances and for people’s personal finances. A key call will be what will happen to the age at which people are entitled to the state pension, currently 66. But there are a range of other policy changes that are also likely to be considered in this politically most sensitive area.

1. Retirement age

The previous policy of gradually raising the age of entitlement to state pensions – known as the state retirement age – was put on hold due to controversy ahead of the last parliamentary elections. The state’s retirement age was lowered from 65 to 66, but it was projected to be 67 last January and 68 by 2028 have been put on hold, pending a study by a pensions commission . Its report is supposed to recommend that any further increase be postponed for seven years, with a gradual increase in the retirement age to 67 in a series of gradual steps between 2028 and 2031 and an increase to 68 by 2039. However, its full analysis of the financial implications of this reform and other necessary reforms have not yet been published. There are also key questions relating to what is happening with the employment contracts of people, many of whom provide for retirement at age 65.

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Upcoming vehicle emissions tests in Bexar County once key air quality standard is breached Thu, 23 Sep 2021 00:20:56 +0000

SAN ANTONIO – Time is running out for Bexar County’s efforts to avoid new air quality regulations. Friday marks three years since the EPA said the county’s ozone levels are too high.

“We had a marginal classification which is the lowest of the five classification levels,” said Lyle Hufstetler, natural resources project coordinator with the Alamo Regional Council of Governments (AACOG). “With that level of classification, it set off a three-year clock for us to reduce our ozone levels to their level. Unfortunately, that deadline is two days from today, and we’re not going to meet that threshold. “

Changing from marginal to moderate designation results in further restrictions. In the coming years, drivers in Bexar County will join others in the state in being required to have their vehicles tested for emissions during annual vehicle inspections.

“You have to show up for your annual safety inspections, and it costs $ 7 and takes maybe 15 minutes depending on crowds,” Hufstetler said. “But with the addition of emissions inspection, on top of that, we’re looking at an additional cost for this process. We are currently looking at around $ 18.50 for each inspection.

A d

Bexar County would have four years to implement the tests, following an official designation, which Hufstetler says will take place early next year. Bexar County would join other large counties in the state, such as Dallas and Harris, which have been performing emissions testing for some time.

The air quality in the area had been a net positive, according to AACOG. Officials said this was a factor that led Toyota to choose San Antonio for its new facility over cities like Dallas and Houston. Now, companies wishing to relocate or expand to the city of Alamo will face a tougher review of plans on how to offset and reduce any new emissions their expansion may bring.

“It’s so important that we really make an effort to get back to normal so that we can continue to attract these businesses to Bexar County,” Hufstetler said.

The region’s explosive growth has contributed to a recent surge in ozone levels. Even still, they are much lower than they were in the 90s, and federal standards have become stricter.

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At high concentrations, ground-level ozone can cause pain decreased lung function with deep breaths and worsened asthma symptoms, according to the Texas Commission on Environmental Quality.

“However, these effects would be rare at concentrations typically measured in the San Antonio area,” TCEQ wrote in a statement. “In addition, ozone concentrations in San Antonio are not increasing and, in fact, the regulatory ozone level has decreased by 16% between 2000 and 2020.”

The TCEQ said the state should also submit updated plans to the EPA, and additional measures may be needed to help the region comply with the Clean Air Act.

Do you have questions about transport or traffic? Let us know, and your answer could be our next story. Find past answers on our traffic page.

Copyright 2021 by KSAT – All rights reserved.

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7 factors that affect the interest rate on your mortgage Wed, 22 Sep 2021 07:32:35 +0000

While a home loan can help make your dream of owning a home come true, it is prudent to ask for one that won’t burden you disproportionately. Keeping this in mind will help you make the right decision, especially since mortgage repayment is a task that requires a financial commitment. To determine which lender interest rate is best for you, we recommend that you use a home loan EMI calculator.

The mortgage interest rate is an essential part of the terms and conditions of any mortgage loan. A reasonable interest rate makes the prospect of applying for a home loan less difficult. Some other factors influencing the type of home loan offer you are offered include the current state of the economy, the rate of inflation, and your financial condition. In this article, however, we focus on the mortgage interest rate and the seven factors that affect your mortgage interest rate.

What Are The Types Of Interest Rates For Home Loans?

Here is a brief explanation of the different types of mortgage interest rates available in the loan market.

  1. Fixed interest rate

A fixed home loan interest rate is the type that is not influenced by the changing economic situation of the country. This means that regardless of the performance of the economy, the interest rates applicable on your home loan remain unchanged. A significant disadvantage of the fixed interest rate is that it is higher to stay on top of economic changes. Additionally, in some cases, individual borrowers sometimes even face a prepayment penalty in the event of foreclosure.

  1. Floating interest rate

The floating interest rate is sensitive to the current economic situation. While some days there may be increases in the home loan interest rate, on others you may qualify for a lower interest rate on your home loan. The most notable advantage of the floating interest rate is that borrowers benefit from lower rate changes in policy. Individual borrowers may also be able to prepay their loans without any penalties.

A Factors That Affect Your Home Loan Interest Rate

Several factors influence the interest rate offered to you on your home loan. We have listed seven of these components.

  1. Internal and external benchmarks

Most lenders offer borrowers two types of interest rates for home loans to choose from: ???? one is linked to an external repository and the other is linked to an internal repository. Depending on the borrower’s choice, the interest rate parameters change.
Borrowers who choose to avail of a loan subject to the internal benchmark are dependent on the lender’s MCLR. It is determined by their operating costs, the marginal cost of funds, any negative carry-overs and the loan maturity premium. The MCLR undergoes a periodic reset, allowing lenders to assess the rate of their current borrowers. This process decides whether the interest rate on your home loan will increase or decrease.

In the case of interest rates which depend on other factors, the determining variable is the RBI repo rate. For these loans, the interest rate is determined by the repo rate set by the RBI. If the reverse repo rate is low, lenders can pass the benefit on to borrowers. Likewise, if the repo rate is high, then the interest rates offered are steeper.

  1. Type of interest

The type of interest rate you accept also determines the type of home loan offer you can get from your lender. A fixed interest rate eliminates the possibility of interest rate fluctuations but prevents you from taking advantage of low interest rates when floating interest rates are favorable. Your choice of interest rate should depend on the current economic scenario.

  1. Credit score

The credit score is a summary of your repayment history, your creditworthiness and your level of tax compliance. A high score increases your chances of being eligible for a low interest rate for a home loan. You need to know how to improve your CIBIL score to get a mortgage at the lowest interest rate.

  1. Loan to value ratio (LTV)

The LTV ratio is a measure that allows financial institutions to assess the risks involved in lending money to borrowers. The LTV is calculated by comparing the amount you request to the value of your assets. To determine the LTV ratio for home loans, financial institutions weigh the loan amount you requested against the value of your asset.
For example, if your loan application is for an amount equal to half of your assets, then your LTV ratio is 50%. Among other things, a high LTV ratio can impact your chances of getting a low-interest home loan.

  1. Property location

If your property is located in a popular locality with all the necessary amenities, you can expect a lower interest rate. However, if your property is in an area that does not have these amenities, the rate is likely to increase, due to the low expected resale value of your property.

  1. Nature of occupation

When you have a stable source of income, the lender is more comfortable offering a low interest rate because they are confident that you will repay the mortgage within the loan term risk-free. default of payment.

  1. Risk profile of the borrower

If you are someone whose credit profile is deemed “at risk,” lenders are less likely to offer you a low interest rate on a home loan and may instead charge you an additional risk premium to secure. a loan. A borrower’s profile is classified as risky if they have a low CIBIL score, have previously rejected loan applications, or have had problems with credit repayment and default. Know that if your profile is perceived as too risky, you risk being rejected for your mortgage applications.

Choose the right interest rate for your mortgage today

Apart from these seven factors, several other variables also determine your eligibility criteria for low interest home loans. Factors such as the length of the loan and the amount of your loan are subjective and differ from lender to lender, but could influence their decision to approve the loan.

Before applying for a home loan, we suggest that you explore all the options available. Determine what type of home loan interest rate is best for your finances and will serve you well in the long run. Prospective borrowers can also visit our website today to browse our competitive interest rates and home loan offerings.



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Ordinance plan for telecommunications reform Tue, 21 Sep 2021 20:21:56 +0000

Officials from the Department of Telecommunications (DoT) said the spirit of the Supreme Court’s order had been the guiding principle of Cabinet relief last week.

Our special correspondent


New Delhi

Posted on 22.09.21, 01:51 AM

The Center is expected to issue an ordinance to implement some of the reforms announced in the telecom package last week.

The four-year moratorium on the reimbursement of Adjusted Gross Income (AGR) contributions cannot come into effect without the Ordinance in light of the Supreme Court’s verdict which imposed their payment in 10 installments until 2031.

Officials from the Department of Telecommunications (DoT) said the spirit of the Supreme Court’s order had been the guiding principle of Cabinet relief last week. Officials said the reliefs would not affect revenue collection.

They stressed that the interest that had to be paid if an operator opted for the moratorium would be such that the net present value of contributions would remain unchanged.

The legislative route is envisaged because it would deal not only with the moratorium but also with the new definition of the AGR to be taken into account prospectively for the calculation.

Officials said talks were at an early stage and nothing was finalized.

There were a few potential elements in the package: Late payment of license fees and spectrum usage fees will result in interest to be charged at 2% above the marginal cost of the funds-based lending rate (MCLR ) of the State Bank of India, which is currently indexed at 7 percent. Previously, interest was charged at 4 percent above the MCLR rate. In addition, there will be full exemption from penalties and interest on penalties – the two charges that have led to the increase in contributions from telecommunications companies.

Since these will be implemented prospectively, there may not be a need to pass an order on them at this time, as they do not violate the terms of the Supreme Court’s verdict.

But the government can also choose to include these elements in the ordinance and then hope to pass the appropriate legislative amendments during the budget session.

The cabinet had given the possibility to operators to convert the interest of the moratorium into equity.

In addition, the government will have the option of converting moratorium contributions into equity. The guidelines on these counts will be finalized by the Ministry of Finance.

However, analysts said it was not clear whether the government would have the option of converting only principal or even interest into shares after the moratorium ends.

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Op-ed: We don’t have time for another fossil fuel bridge Tue, 21 Sep 2021 09:33:45 +0000 In his 2014 State of the Union address, President Obama hailed natural gas as “the transitional fuel that can power our economy with less carbon pollution that causes climate change.”

The shift from coal to gas was a key pillar of Obama’s Clean Power Plan to reduce climate emissions, which major environmental groups have aligned to praise and defend. We now know that methane, the main component of natural gas, is a much more potent greenhouse gas than carbon dioxide. We know that gas power plants are, at best, a marginal improvement over coal. Today, wind and solar are the cheapest sources of new generation of energy. The struggle has largely shifted from coal to gas.

Some energy companies and utilities still see gas as a bridge to enable more renewables, filling in the gaps when the wind isn’t blowing and the sun isn’t shining. Others – including the oil and gas industry, the Biden administration and, inexplicably, many large green groups – are laying the groundwork for a new bridge, touting the climate benefits of two dubious strategies: use and carbon storage (CCUS) and hydrogen.

Related: Want More Clean Energy? Focus on people, not technology

Many of the voices that support the capture of carbon and hydrogen as new climate solutions are the same voices that fought for the natural gas bridge a decade ago. And, again, they lead us down the wrong path, bridging decades of additional emissions as we quickly run out of time to avoid the most disastrous impacts of climate change.

As the latest Intergovernmental Panel on Climate Change (IPCC) report made clear, we don’t have time for another fossil fuel bridge.

The carbon capture boondoggle

Research on carbon sequestration at Idaho National Laboratory. (Credit: Idaho National Laboratory / flickr)

The use and storage of carbon capture involves removing carbon dioxide (CO2) from the air, either at the source of production such as a power plant, or directly from the air around us, and either by l ‘using for other purposes, either by storing it underground, ideally forever. More than one watch group has described carbon capture as a mess, and for good reason. The federal government has pumped billions into failed carbon capture projects, and the new infrastructure plan and reconciliation process is about to inject tens of billions more.

One after another, these projects experienced delays and cost overruns, missed emission reduction targets and ultimately failed. The few successful carbon capture projects still in operation make extensive use of the captured carbon for improved oil recovery processes and are paid for the purported climate benefit of CO2 burial.

Carbon capture is an expensive and energy intensive process. Even if successful, carbon capture in power plants and industrial facilities will never eliminate all CO2 emissions released on sites. In addition, carbon capture does nothing to combat the emissions of harmful co-pollutants like nitrogen oxides (NOx) or upstream emissions due to methane leaks during the extraction and transportation of natural gas. . In fact, because carbon capture requires more fossil fuels to generate the same amount of energy, it exacerbates both of these problems. Researchers at Cornell University and Stanford University have discovered that the production of hydrogen by carbon capture, generating so-called “blue” hydrogen, would result in more greenhouse gas emissions than combustion. direct gas or coal to generate heat.

The use and storage elements of carbon capture are also problematic. A recent study from the University of Michigan found that most uses of captured CO2 would result in a net climate burden, resulting in higher emissions than they would avoid. Permanent CO2 storage has yet to be proven, with fears that the leaks could negate many of the process’s purported climate benefits.

Delay action against climate change via hydrogen

Hydrogen presents another emission-laden path forward. Today, around 99% of hydrogen is produced by fossil fuel intensive processes, resulting in gray hydrogen or, when combined with carbon capture, blue hydrogen. The only emission-free way to produce hydrogen is the electrolysis of water supplied directly by renewable energies.

The fossil fuel industry has been successful in its lobbying and marketing campaign to group blue and green hydrogen under the nickname “clean” hydrogen. The industry and its supporters are promoting the benefits of green hydrogen, while planning to increase the production of blue hydrogen as a cheaper solution in the short term – using more gas and emitting more gas to it. greenhouse effect along the way.

Concerns over blue hydrogen led Chris Jackson to step down as chairman of the UK’s leading hydrogen industry association, saying: “I passionately believe that I would betray future generations by remaining silent on the fact that blue hydrogen is a costly distraction at best, and at worst, a lock-in for continued fossil fuel use that ensures we fail to meet our decarbonization goals. “

Hydrogen is sold to policy makers and the public as a solution to reduce the carbon footprint of hard to reach sectors, such as high temperature industrial processes and shipping. But that is not what happens in practice. Instead, utilities are rushing to mix low levels of hydrogen into natural gas pipelines, citing nominal reductions in carbon emissions as an excuse to keep building new pipelines and power plants and delay electrification. areas that we already know how to decarbonize, such as heating and light transport.

It’s a classic bait and switch, delaying climate action and blocking decades of additional greenhouse gas emissions and continued air pollution.

Deep decarbonization will come from renewable energies

The best climate strategy we have is to fully engage in the rapid scale-up of solutions that we already know will work – solar, wind, hydro, geothermal, battery storage, energy efficiency, demand management. . We already have the tools to achieve deep decarbonization. Now is not the time to throw billions of dollars down another fossil fuel bridge to nowhere.

The use and storage of carbon and hydrogen are not the technologies we need today or tomorrow. If anything, they should be end of line solutions when all other options have been exhausted. They should only be a bridge of last resort.

Seth Mullendore is Vice President and Project Director for Clean Energy Group, where he leads projects ranging from advancing customer solar and battery storage in underserved communities to replacing power plants with clean technology.

Banner photo: Advanced Carbon Capture Technology (PACT) facility in Beighton, Yorkshire. (Credit: Ministry of Energy and Climate Change)

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Jobs are all over Nebraska. Workers? Not so much | Local company Mon, 20 Sep 2021 21:05:00 +0000

This was confirmed by figures released on Friday, which showed the August unemployment rate in the Lincoln Metropolitan Statistical Area to be 1.7%, the lowest on record in data dating back to 1990. The unemployment rate state rate of 2.2% was the lowest on record. go back to 1976.

Kawasaki hires for positions that start at $ 18 an hour and offer a full package of benefits. That’s a living wage, but it’s well below the average Lincoln manufacturing wage of over $ 21 an hour and the overall average for all jobs of nearly $ 24 an hour.

Seck said the benefits and regular full-time hours offered by the jobs attract people who have families or are looking for career stability.

“This is the security they are looking for,” he said.

It was that security, especially the benefits, that drew Jayric McDonald to Thursday’s job fair.

“This would be my first job,” said the 18-year-old Lincoln North Star High School graduate.

McDonald said his brother previously worked at Kawasaki and had good things to say about the company. He said his brother’s experience, combined with the pay and benefits that Kawasaki offers, was enticing.

Eric Thompson, director of the Bureau of Business Research at the University of Nebraska-Lincoln, said Kawasaki, as a leading employer in Lincoln with nearly 2,500 workers, “will be more successful in hiring than most companies “, with the potential to attract already salaried workers looking for better pay and better benefits.

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a practical option for Generation Z who are new to investing Sat, 18 Sep 2021 20:36:27 +0000

Let’s say you have a bunch of money that you are willing to invest.

If you’re like me, you probably don’t want to spend all of your time staring at a screen actively trading Robinhood. You want to grow your money, but you don’t want to think about it all the time. Maybe the thought of interacting with an investment professional gives you anxiety, or the fees seem high.

You’re not alone.

A study of 3,000 American adults conducted by Vise, a technology-based investment management platform designed for advisers, which was outsourced exclusively to USA TODAY found that the biggest barrier to working with an advisor is concern about cost (43%). .

Here is what I did: I skipped the personal investment advisor and got a robot to build my portfolio.

Roboadvisers, digital apps that use algorithms to build investment portfolios, are an increasingly popular investment vehicle, especially for young adults who want a simple and mobile-friendly tool.

You can download an app and complete a survey on yourself with questions such as your age, income, and risk tolerance. Based on these answers, roboadvisers generate a portfolio of stocks and bonds for you to maximize your long-term returns.

These investment vehicles can scale considerably with low marginal cost because the portfolio is generated by algorithms. Because they take the human element out of the investment, they can serve millions of customers at a time with just a few lines of code.

Many roboadvisers are designed for young investors, especially Millennials and Gen Z customers.

Gen Z, born between 1997 and 2012, began entering the workforce shortly before the COVID-19 pandemic hit and when unemployment rates were at historically low levels. Unemployment rates then skyrocketed and then stabilized. And these workers are starting to save for their retirement at an unprecedented young age, according to the Transamerica Center for Retirement Studies, a nonprofit.

Similar to millennials, born between 1981 and 1996, these young Americans struggle with student loans and credit card debt, but want to invest for their retirement and build up savings.

The study reveals: Student debt is a potentially crippling liability for college graduates

“Millennials and Gen Z grew up digitally, and they expect they can manage their money the same way they order products from Amazon or call a car on Uber,” says Kate Wauck, director of communication at Wealthfront, a roboadvising company. “These young investors don’t want to have to pick up the phone or walk into a stuffy office to manage their money.”

►Millennials quit their jobs to trade:Here are the risks and benefits

►Generation Z turns to TikTok for financial advice:But regulators warn against investment programs

Most investors want a financial advisor but don’t trust robots

Despite young investors’ familiarity with digital tools, the same Vise study found that nearly half of Americans (48%) trust human financial advisers, compared with just 11% of Americans who trust roboadvisers.

Two percent of total respondents and 4% of 18-24 year olds used roboadvisers. Three percent of respondents aged 25 to 49, 1% aged 50 to 64, and 0% of those 65 and over had tried roboadvisers.

In contrast, 41% of people over 65 report working with a financial advisor, compared to 26% of Gen X, 17% of Millennials, and 14% of Gen Z.