The Upcoming National Election, Our Nation’s Economy & The Domino Effect
We got a glimpse of what Joe Biden and the Democratic Party is considering for the U.S. Economy just listening to a few comments about his plans to increase taxes and repeal all of President Trump’s tax reforms. These plans are cataclysmic. Consider the following:
Biden has stated that he might consider appointing Elizabeth Warren as Secretary of the Treasury. If he makes that choice, what then will be the fiscal policy of the United States?
Warren has been steadfast that higher taxes are a necessity to fund the sweeping Green New Deal financial commitments that will surely be the cornerstone of a Biden Presidency.
Warren has also said she intends to focus her attention on “taxing the rich” by increasing the marginal tax rates to pre-Trump levels. That would mean a significant tax increase to taxpayers, many of whom are not wealthy. Warren also is on record saying that she would increase the capital gains tax from 20% to 35%.
Perhaps the most devastating increase in taxes and a potential killer for the U.S. Economy is her pledge to implement a “transaction tax” on the stock market. She says this would be “pennies on the dollar, a nominal transaction tax, probably no more than 1%” If one considers the number of transactions on any given day on the New York Stock Exchanges and the dollar value associated with those transactions, such a tax is by no means trivial, all flowing into the Treasury’s coffers to be spent by Democrats on their inexhaustible wish-lists of socialist programs.
Finally, there is Warren’s “wealth tax,” yet another bite at the American taxpayer.
Let’s examine briefly what this all means because it affects each and every one of us.
Increasing taxes on the rich:
I don’t know a single Democrat who would oppose this concept. I can hear the voices now,"Let’s tax those people…they have enough money so it won’t impact the little guy, right?”
Wrong! What do you think wealthy taxpayers will do if they are targeted to have more of their income taxed? They will do the same thing wealthy individuals in France and Spanish did when their governments increased their taxes overnight. They left their countries.
It’s called Capital Flight. They take their marbles and find tax havens to avoid their wealth being taxed. What then would happen? Someone would have to make up the difference. That means the burden will fall on people like you and me.
Think also about the domino effect of this. Capital flight means money going elsewhere, which means fewer dollars available for charities, research, education, and infrastructure. It also means fewer dollars available to democratic cities, counties and states around the country whose gross fiscal mismanagement over the decades has led to the deterioration of their economies. Then, too, you can expect higher unemployment which means lesser payroll taxes collected and an even further drain on unemployment payments and fewer dollars paid into Social Security, which has been used as the piggy bank for democratic spending since the launch of the Great Society under Lyndon Johnson in 1964.
For those who are unaware, the Social Security Fund, created to be sacrosanct and intended for the retirement of seniors, has been used by politicians to fund social programs to the tune of $5.0 Trillion over the past fifty years without one cent being paid back into the fund.
Capital gains tax.
Capital gains are profits realized from long term investments in stock and bond holdings as well as equipment and technology. In short, the engines that fuel growth. If capital gains are to feel the brunt of an increase in taxes, the likely occurrence will be capital flight out of, America, ultimately reducing growth, increasing unemployment, and creating an ever-increasing government deficits.
Social programs, ladies and gentlemen, cost money, and a vote for the democrats is a vote to entrust to them your hard-earned dollars to produce ever more socialist programs. Socialism hasn’t worked in any civilization in history. It will fare no better under Joe Biden and his crew of miscreants.
“Pennies on the Dollar Transaction Tax”
Warren has said many times this “nominal tax” on the stock market transactions will not impact small investors and working-class people but will be focused on the wealthy. That is probably the most intentional bit of financial chicanery ever expressed! Even the plural "pennies" in the name belies Warren's 1% tax claim.
How do you think the stock market will react to a transaction tax levied on every single transaction undertaken in the market daily - millions of transactions worth billions of dollars everyday? Such a tax represents capital leaving the market. What happens when money goes out of the market? Value declines. When value declines, there is continued pressure to sell, and that further diminishes value. If you are an individual with a 401-K Plan, an individual with an investment in an annuity, or the manager of a teachers pension or any other major fund, the probable result of this “Warren Tax,”is a significant reduction in the value of your investment.
When Donald Trump took office, he began implementing fiscal and investment programs that fueled significant growth in the U.S. Economy. We saw gross domestic production growth rates approaching 4%, virtual full employment, the lowest unemployment rates for women, Blacks and Hispanics in history and manufacturing growth.
President Trump initiated tax reforms that lowered taxes on individuals and corporations, incentivized foreign investment in the U.S.. Investment in oil and gas exploration was stimulated, which made America energy independent for the first time in its history. America today stands entirely self-sufficient in terms of power and we are now a net oil-exporting nation. We enjoyed, in the first three and one half years of President Trump’s administration, the most exceptional economy in the history of our nation.
All of this growth was achieved despite not receiving any help from Democrats who spent their time on fruitless, wasteful efforts trying to impugn and impeach our President. They are still hard at work on that today even though every attempt has failed miserably and at significant cost to the nation, you, and me.
Then came the Coronavirus debacle resulting in conscious decisions to shut down the most productive economy in the world as well as virtually every other economy on the planet. We are still struggling with this virus and its attendant economic and health impacts.
COVID-19 has adversely impacted our way of life here in the U.S. and, indeed, all over the world. The virus originated in China who misled the world and, in doing so, caused untold horror to families around the globe. The democrats would have you believe this is President Trump’s fault, but that is another false narrative in this Election Year.
Think long and hard about your vote in November. If you believe that the Democrats have a better plan for the economic growth of our nation, then, by all means, you should vote for Joe Biden and his platform, whatever that is. But, as I think about the plans expressed by Joe Biden, Nancy Pelosi, Chuck Schumer and Elizabeth Warren, the challenges facing us with COVID-19, China’s thirst for power and influence, and as someone trained in finance, I know a Biden presidency will be a blueprint for economic and social disaster. Moreover, the burden will ultimately fall on the middle class. We will have mounting debt and rapidly become a weaker nation, as we were under Obama-Biden in 2008-2016.
Wisdom suggests we stay with the man who rebuilt our nation and made us the envy of the world.
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E.P. Unum is US!
Tags: E.P. Unum, The Upcoming National Election, Our Nation’s Economy, The Domino Effect To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service and "Like" Facebook Page - Thanks!
Posted by Bill Smith at 9:50 AM - Post Link
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