Happy hump day, Daily Money readers. Jayme Deerwester with you once again after surviving the first night with an energetic new pupper who bunked with me after being left tied outside my vet’s office yesterday morning.
🗞 News you should know 🗞
Let us now observe a moment of silence for the upcoming loss of your avocado toast.
Until further notice, avocados will not be imported from Mexico to the U.S., after an American plant safety inspector in Mexico received a threat, Mexico’s Agriculture Department said in a statement.
News of the suspension may impact avocado prices and supply chains in the U.S., Michael Swanson, Wells Fargo’s chief agricultural economist told The Washington Post. Swanson said eight out of 10 avocados purchased in the United States are from Michoacán.
“In a few days, the current inventory will be sold out and there will be a lack of product in almost any supermarket,” Raul Lopez, Mexico manager of Agtools, which conducts market research of agricultural commodities told The Washington Post. “The consumer will have very few products available, and prices will rise drastically.”
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💡 Daily insight 💡
The gap in the homeownership rate between Black and white families in the U.S. is bigger today than when it was legal to discriminate based on race, according to a study by the Urban Institute.
In 1960, eight years before the Fair Housing Act, which prohibits property owners, financial institutions and landlords from discriminating on the basis of race was enacted (in 1968), a gap of 27-percentage-points existed between white rates of homeownership (65%) and Black rates of homeownership (38%), and that gulf has widened in recent years. In 2018, 72% of white households owned a home while Black homeownership stood at 42%, a 30-percentage-point difference. In 2018, 57% of Asian and 47.5% of Hispanic American households were homeowners.
Since 2001, the Black homeownership rate has seen the most dramatic drop of any racial or ethnic group in the U.S., falling 5% compared with a 1% decline for white families and increases for Hispanic and Asian Americans.
During the housing boom of the early 2000s, Black Americans between ages 45 and 75 disproportionately held subprime mortgages, loans offered at higher interest rates to borrowers characterized as having tarnished credit histories. Many of these mortgage holders lost their homes and have been unable to return to homeownership, says Jun Zhu, a senior research associate with the Housing Finance Policy Center at the Urban Institute.
💵 Take advantage of this tax change 💵
For both young and older workers, it’s key to realize that the rules this tax season aren’t exactly the same as years past.
On 2021 tax returns, temporary new rules will enable some people who might not have qualified otherwise to obtain good money through the earned income tax credit. The most one can earn with no qualifying children on 2021 federal income tax returns is $1,502. That’s nearly triple the old benefit of up from $538 on 2020 returns for those with no children
There’s no longer an age cap or ceiling set at 64 or younger for workers to qualify for the earned income tax credit. Now the credit can apply on 2021 federal returns to workers who are 65 or older, even if they do not have dependent children, thanks to the American Rescue Plan passed last year.It’s a one-time only deal but the AARP is pushing to extend the tax break for older workers beyond 2021 tax returns.
🎶 Mood music 🎶
With the news of that Disney residential community coming in a time of border tensions, inflation and high gas prices, this lyric from German punk band Die Toten Hosen seemed appropriate: “It doesn’t matter if you’re rich or poor. If the bombs are dropping and the world’s at war, one place stays secure. Disneyland will stay the same.”
LISTEN WHILE YOU WORK: Remember, you can listen to this song and every track I’ve quoted in the newsletter in the Daily Money Mood Music playlist on Spotify.