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President Trump's income tax bill; pandemic pushes up tea prices: What today's news means for your money

President Donald Trump used a loophole to pay little or no federal incomes; the price of tea is increasing; and the markets headed up after a bump from tech and bank stocks. Here’s how the headlines could affect your money.

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President Donald Trump's tax returns are under scrutiny; the price of tea is soaring; and markets get a bump from tech and bank stocks. Here's how the headlines could affect your money.

Stocks continue to rally

The major stock indexes were up Monday morning, building on gains from last week. Tech and bank stocks led the rally. Traders also cheered news from House Speaker Nancy Pelosi, who said she believes a coronavirus stimulus package is still possible

Experts expect Monday to have less trading volume than usual, due to the Yom Kippur holiday.

President Trump paid $750 in income taxes

President Trump paid just $750 in federal income taxes in 2016, according to a New York Times report. It found Trump paid no income taxes in 10 of the previous 15 years. (The president said Monday he had paid "many millions of dollars in taxes" but did not offer proof.)

According to the Times, Trump's businesses lost hundreds of millions of dollars in the last two decades, allowing him to use tax loopholes that reduced his bill to $0 or almost $0 for many of those years.

How does that compare to a typical American? In 2017, filers with taxable income of $50,000 to $200,000 paid average income tax of 10.8%, according to the National Taxpayers Union Foundation. That's about $5,400 for someone with taxable income of $50,000.

VIDEO2:4602:46
Here's how tax brackets actually work

Video by David Fang

Tea prices climb in coronavirus

Americans are drinking more tea while at home, but at the same time, supply is tightening due to factors like labor shortages and port closures, according to a Wall Street Journal analysis.

The result: You could end up paying more. Bottled tea prices in the United States are up 9.6% from a year ago, while bagged tea rose 1.7%.

Words you've heard: Trading volume

Trading volume measures the number of shares of a stock that have been traded in a certain period of time, usually over the course of the trading day. Investors look to volume patterns to help analyze market movements and make decisions about when to buy.

Although the daily news can have an impact on your wallet, remember to take a long-term outlook when it comes to decisions on spending, saving, and investing.

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