How the US Tax System Works: Infographic

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The US Tax system is the most complex system in the world. Nobody knows if there is any logic or purpose behind some of the tax laws with all its all of deductions, credits and so forth. Because it is so complex thousands of people earn a living trying to interpret it for others. This group of people include attorneys, accountants, tax software companies, tax consultants, etc.

One of the earliest written legal codes is “The Code of Hammurabi”. Below is the description:

The Code of Hammurabi was one of the earliest and most complete written legal codes and was proclaimed by the Babylonian king Hammurabi, who reigned from 1792 to 1750 B.C. Hammurabi expanded the city-state of Babylon along the Euphrates River to unite all of southern Mesopotamia. The Hammurabi code of laws, a collection of 282 rules, established standards for commercial interactions and set fines and punishments to meet the requirements of justice. Hammurabi’s Code was carved onto a massive, finger-shaped black stone stele (pillar) that was looted by invaders and finally rediscovered in 1901.

Source: Code of Hammurabi

Someone today might be able to read and understand The Code of Hammurabi than the US tax system.

With that intro, below is a neat infographic on the current US Tax system from Peter G.Peterson Foundation:

Click to enlarge

Source: Peter G.Peterson Foundation

Mexico Starts 2023 as the Top US Trading Partner : Infographic

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Mexico is benefitting from US firms’ near-shoring manufacturing operations since Covid-19 and the recent supply chain crisis. One way to validate this is by reviewing trade data between the two countries. According to recent data, Mexico’s trade with the US has increased year-over-year for the second consecutive month in January of this year. The following infographic shows some of the related facts:

Click to enlarge

Source: Freight Waves

It is interesting that some of the top export products to Mexico are motor vehicle parts and computer chips. These items are used in the assembly of automobiles and computers making them as the top import products into the US.

Bull and Bear Markets from 1945 to 2021 for UK Markets: Chart

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The bull and bear market for the UK equity market from 1945 to 2021 is shown in the chart below. The returns shown are based on total return of the FTSE All Share Index in local currency. The average bull market during the period had a duration of 5.9 years and the average bear market lasted 1.1 years.

Click to enlarge

Source: Vanguard, UK

Related ETF:

  • iShares MSCI UK ETF (EWU)

Disclosure: No Positions

Mexican Airport Operator Stocks Have Performed Well This Year

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The travel industry is one of the big beneficiaries of the revenge spending since consumers started traveling again from last year. Within the industry, many airlines have earned record revenues and profit for the first time since the pandemic. For instance, US-based carriers reported record Q4 earnings recently. Soaring travel to tourist destinations and also rise in business travel particularly between US and Mexico have helped the growth of Mexican airport operators.

The three US-listed Mexican airport operators have performed very well so far this year. The tickers are:

Grupo Aeroportuario del Pacifico SAB de CV (PAC)

Grupo Aeroportuario del Sureste SAB de CV (ASR)

Grupo Aeroportuario del Centro Norte SAB de CV(OMAB)

The chart below shows the year-to-date return of these stocks:

Click to enlarge

The following chart shows the 5-year returns:

Source: Google Finance

Disclosure: No positions

The Vanguard 2023 Index Chart: UK Edition

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British equities have performed poorly in recent years since the Brexit saga began. When compared to US peers, British stocks have earned poor returns for 1993 to 2023 as shown in The Vanguard 2023 Index Chart below. Since 1993, US stocks would have earned an annual return of 10.49% relative to British stocks which had an annual return of just 7.39%. Even European higher returns than their British counterparts.

Click to enlarge

Source: Vanguard UK

Related ETF:

  • iShares MSCI UK ETF (EWU)

Disclosure: No Positions