Tax and Spend and Spend and Spend some more

[Logophile]

Biden is considering a major federal tax increase for the first time in nearly 30 years, report says

President Joe Biden is preparing to include a federal tax increase in his next big economic package, according to a Bloomberg report on Monday.

People familiar with the matter told the outlet that the Biden administration is working on a follow-up spending bill to the recently-enacted $1.9 trillion coronavirus stimulus. The initiative is expected to have a bigger price-tag, and may raise the corporate tax rate and the income tax rate for high-earning individuals to offset the spending, Bloomberg reported.

The move would represent the first major federal tax hike in nearly 30 years, per Bloomberg. The last significant tax increases were implemented in 1993 under the Clinton administration.

Sources with knowledge of the private discussions told Bloomberg that current ideas involve raising the corporate tax rate from 21% to 28%, bumping up the income tax rate for individuals who earn more than $400,000 per year, increasing the capital-gains tax rate for individuals who earn at least $1 million per year, expanding the estate tax, and "paring back" tax preferences for pass-through businesses, which are not subject to corporate taxes, such as limited liability companies. https://www.businessinsider.com/bid...l-tax-increase-almost-3-decades-report-2021-3

The tax hikes are not nearly as alarming as the "next big economic package." WHY do we need another "big economic package??" Thanks!!

 

[RabidAlpaca]

Everybody remember months ago when Trump and the Republicans did the same thing and conservatives cheered? Stop pretending you're suddenly fiscal conservatives again after 4 years of silence.

 

[ttwtt78640]

We will soon see if Biden (actually the congressional demorats) was serious about his increased taxation being limited to those making $400K and up. Obviously, that is unlikely unless the taxation of pass-through business rates (LLC’s and such) are not made progressive in the process. Beware of new (or expanded) federal taxes such as carbon taxes, vehicle mileage taxes and/or increased excise tax rates which do not apply only to “the rich”.

 

[Taylor]

The tax hikes are not nearly as alarming as the "next big economic package." WHY do we need another "big economic package??" Thanks!!

We don't. Most economists agree that the latest giveaway was far too much. This isn't about what we need, it's all about what the Rats think they need to stay in power after the midterm.

 

[PeacefulWarrior]

Biden is considering a major federal tax increase for the first time in nearly 30 years, report says

President Joe Biden is preparing to include a federal tax increase in his next big economic package, according to a Bloomberg report on Monday.

People familiar with the matter told the outlet that the Biden administration is working on a follow-up spending bill to the recently-enacted $1.9 trillion coronavirus stimulus. The initiative is expected to have a bigger price-tag, and may raise the corporate tax rate and the income tax rate for high-earning individuals to offset the spending, Bloomberg reported.

The move would represent the first major federal tax hike in nearly 30 years, per Bloomberg. The last significant tax increases were implemented in 1993 under the Clinton administration.

Sources with knowledge of the private discussions told Bloomberg that current ideas involve raising the corporate tax rate from 21% to 28%, bumping up the income tax rate for individuals who earn more than $400,000 per year, increasing the capital-gains tax rate for individuals who earn at least $1 million per year, expanding the estate tax, and "paring back" tax preferences for pass-through businesses, which are not subject to corporate taxes, such as limited liability companies. https://www.businessinsider.com/bid...l-tax-increase-almost-3-decades-report-2021-3

The tax hikes are not nearly as alarming as the "next big economic package." WHY do we need another "big economic package??" Thanks!!

Excellent news!
Tax cuts for billionaires and multinational corporations never should have happened to begin with.

Nice going President Biden, make it happen!! You have my full support on this PLEASE and THANK YOU President Biden!!

 

[Luce]

Good.

 

[JasperL]

We don't. Most economists agree that the latest giveaway was far too much. This isn't about what we need, it's all about what the Rats think they need to stay in power after the midterm.

Most economists believe that? Do you have a poll? What do the Thugs think? I'm sure they're just interested in bipartisanly and moderately doing the best for the American Public and the Working Man.

 

[Taylor]

Most economists believe that? Do you have a poll? What do the Thugs think? I'm sure they're just interested in bipartisanly and moderately doing the best for the American Public and the Working Man.

Why Joe Biden’s proposed stimulus is too big

America’s economy needs targeted relief more than indiscriminate spending

www.economist.com

Biden's stimulus may be too big amid economic recovery, should be targeted at those most impacted

Biden is trying to push through a $1.9 trillion stimulus program that congressional Republicans don't want and that the economy may not need.

www.cnbc.com

With the economy healing, is Biden's $1.9T COVID-19 relief package too much?

Critics say Biden's $1.9 trillion stimulus is excessive but supporters say it's just the right medicine for an unprecedented downturn

www.usatoday.com

Key ex-Obama adviser says Biden stimulus is too big

Larry Summers, the top economic adviser to former President Obama, warned in an op-ed on Friday that President Biden’s proposed COVID-19 relief package is too big and could overheat the economy.Sum…

thehill.com

$1.9 Trillion Is Too Much Stimulus

New deficits only make sense if they target the problem, writes Douglas Holtz-Eakin, the former Congressional Budget Office director.

www.barrons.com

Larry Summers Says Latest Coronavirus Stimulus Needs Restraint

The economist, who served in the Clinton and Obama administrations, tells NPR's Scott Simon about the problems that he sees in the Biden administration's COVID-19 relief bill.

www.npr.org

 

[Ringo Stalin]

 

[gbg3]

Just imagine the number of Solyndra scandals we we'll be seeing in the not too far future! Heck, just create a new company, toss the word word green in its name or vague mission statement, and you'll be good for all sorts of new "free" money at the expense of the American taxpayer.

 

[JasperL]

Why Joe Biden’s proposed stimulus is too big

America’s economy needs targeted relief more than indiscriminate spending

www.economist.com

Biden's stimulus may be too big amid economic recovery, should be targeted at those most impacted

Biden is trying to push through a $1.9 trillion stimulus program that congressional Republicans don't want and that the economy may not need.

www.cnbc.com

With the economy healing, is Biden's $1.9T COVID-19 relief package too much?

Critics say Biden's $1.9 trillion stimulus is excessive but supporters say it's just the right medicine for an unprecedented downturn

www.usatoday.com

Key ex-Obama adviser says Biden stimulus is too big

Larry Summers, the top economic adviser to former President Obama, warned in an op-ed on Friday that President Biden’s proposed COVID-19 relief package is too big and could overheat the economy.Sum…

thehill.com

$1.9 Trillion Is Too Much Stimulus

New deficits only make sense if they target the problem, writes Douglas Holtz-Eakin, the former Congressional Budget Office director.

www.barrons.com

Larry Summers Says Latest Coronavirus Stimulus Needs Restraint

The economist, who served in the Clinton and Obama administrations, tells NPR's Scott Simon about the problems that he sees in the Biden administration's COVID-19 relief bill.

www.npr.org

Fascinating. You have one writer for the economist, and another one for USA Today quoting 'critics say' which is always good. And then you have Larry Summers, who no one should pay attention to anymore, and a Thug economist, Holtz-Eakin.

I guess what you meant is less than a handful of named economists believe it's far too much, many other economists believe it's necessary, and the Thugs oppose it. Just say that versus making a claim about 'most' when you have no idea what 'most' economists believe about the last bill.

 

[MTAtech]

Biden is considering a major federal tax increase for the first time in nearly 30 years, report says

President Joe Biden is preparing to include a federal tax increase in his next big economic package, according to a Bloomberg report on Monday.

People familiar with the matter told the outlet that the Biden administration is working on a follow-up spending bill to the recently-enacted $1.9 trillion coronavirus stimulus. The initiative is expected to have a bigger price-tag, and may raise the corporate tax rate and the income tax rate for high-earning individuals to offset the spending, Bloomberg reported.

The move would represent the first major federal tax hike in nearly 30 years, per Bloomberg. The last significant tax increases were implemented in 1993 under the Clinton administration.

Sources with knowledge of the private discussions told Bloomberg that current ideas involve raising the corporate tax rate from 21% to 28%, bumping up the income tax rate for individuals who earn more than $400,000 per year, increasing the capital-gains tax rate for individuals who earn at least $1 million per year, expanding the estate tax, and "paring back" tax preferences for pass-through businesses, which are not subject to corporate taxes, such as limited liability companies. https://www.businessinsider.com/bid...l-tax-increase-almost-3-decades-report-2021-3

The tax hikes are not nearly as alarming as the "next big economic package." WHY do we need another "big economic package??" Thanks!!

In other words, the Biden tax plan proposes to undo the failed 2017 Republican tax cut on corporations and the wealthy. Back in 2017, the tax-cut's proponents made big promises about soaring investment and wages, and also assured everyone that it would pay for itself; none of that has happened. Corporations used their tax-cut for stock buybacks rather than to raise wages.

Worse, the tax cut did have one important international effect: foreigners got a big tax-cut, since the tax cut gave a big break for corporations: Federal tax receipts on corporate income have plunged. Since many foreigners own parts of American companies or have American subsidiaries, they got the tax-cut. Roughly a third of U.S. corporate profits basically flow to foreign nationals – which means that a third of the tax cut flowed abroad, rather than staying at home. This probably outweighs any positive effect on GDP growth. So the tax cut made America poorer, not richer.

Moreover, as economist Joseph Stiglitz point's out: "The Trump administration ha[d] a dirty little secret: It’s not just plan[ed] to increase taxes on most Americans. The increase has already been signed, sealed and delivered, buried in the pages of the 2017 Tax Cuts and Jobs Act. President Trump and his congressional allies hoodwinked us. The law they passed initially lowered taxes for most Americans, but it built in automatic, stepped tax increases every two years that begin in 2021 and that by 2027 would affect nearly everyone but people at the top of the economic hierarchy."

So, the Biden plan undoes the Republican tax-cut that shouldn't have been enacted in the first place.

 

[MTAtech]

Just imagine the number of Solyndra scandals we we'll be seeing in the not too far future! Heck, just create a new company, toss the word word green in its name or vague mission statement, and you'll be good for all sorts of new "free" money at the expense of the American taxpayer.

Yeah, I remember Solyndra. It was a renewable-energy firm that borrowed money using Department of Energy guarantees, then went bust, costing the Treasury $528 million. And conservatives have pounded on that loss relentlessly, turning it into a symbol of what they claim is rampant crony capitalism and a huge waste of taxpayer money.

Defenders of the energy program tried in vain to point out that anyone who makes a lot of investments, whether it’s the government or a private venture capitalist, is going to see some of those investments go bad. For example, Warren Buffett is an investing legend, with good reason — but even he has had his share of lemons, like the $873 million loss he announced around the same time as Solyndra on his investment in a Texas energy company. Yes, that’s far bigger than the federal loss on Solyndra. So, I guess the lesson you are trying to teach us is that neither the government nor private people should invest because we can be wrong.

 

[Logophile]

We will soon see if Biden (actually the congressional demorats) was serious about his increased taxation being limited to those making $400K and up. Obviously, that is unlikely unless the taxation of pass-through business rates (LLC’s and such) are not made progressive in the process. Beware of new (or expanded) federal taxes such as carbon taxes, vehicle mileage taxes and/or increased excise tax rates which do not apply only to “the rich”.

It's not only the tax hike, but it's also another major spending spree. If it means more checks, it's going alter how Americans perceive work or even its daily necessity. And why does Biden think - or anybody for that matter - that the wealthy or the job makers don't have options elsewhere?? They do. They seriously do internationally. For example, Musk moved over excessive regulation to Texas. But if he can't escape excessive regulation and excessive taxation there, he has welcoming arms all over the globe. Thanks!!

 

[MTAtech]

It's not only the tax hike, but it's also another major spending spree. If it means more checks, it's going alter how Americans perceive work or even its daily necessity. And why does Biden think - or anybody for that matter - that the wealthy or the job makers don't have options elsewhere?? They do. They seriously do internationally. For example, Musk moved over excessive regulation to Texas. But if he can't escape excessive regulation and excessive taxation there, he has welcoming arms all over the globe. Thanks!!

Wealthy Americans aren’t going to go Galt, the routine argument whenever raising taxes is brought up.

 

[Visbek]

We don't. Most economists agree that the latest giveaway was far too much. This isn't about what we need, it's all about what the Rats think they need to stay in power after the midterm.

Larry Summers and others who get interviewed by MSNBC do not constitute "most economists."

There are occasionally surveys of economists on these types of issues. I don't see any on this topic yet.

I'd add that any economist who is worried about inflation should dunk a bucket of water on their own heads. Aside from over a decade of failed predictions of inflation, and aside from how even a massive stimulus isn't going to cause significant inflation, a couple of quarters of 3% inflation won't kill anyone.

 

[Tbird19482]

They can raise taxes and it won't do any good unless they cut spending
it is time to have a Balanced Budget Amend. and have it have some real teeth in it.
We could not spend more then we take in , Only in two cases could we and it would have to be bad.
One , in case of a war like WWII , where we would need to build military equip. fast and we didn't have the money and the other would be in case of a really deep recession or Depression where we would need to spend our way out of it.
Then I think we should have a Temporary national sales tax of 1% ( YES I know our past record of so called " Temp " taxes where they never go away isn't very good )
and have it so when the National debt is paid off the would HAVE to be suspended by law and could not be used again unless we ran a debt because of a war or great recession / depression
as I said these things would have to have some teeth in them and the law should be very strict so we HAVE to suspend the sales tax and it would have to be Temporary and there should be NO!!!! getting around it
Have a nice evening

 

[Taylor]

Larry Summers and others who get interviewed by MSNBC do not constitute "most economists."

There are occasionally surveys of economists on these types of issues. I don't see any on this topic yet.

I'd add that any economist who is worried about inflation should dunk a bucket of water on their own heads. Aside from over a decade of failed predictions of inflation, and aside from how even a massive stimulus isn't going to cause significant inflation, a couple of quarters of 3% inflation won't kill anyone.

A "couple of quarters"? Where did you get that?

 

[Hamish Howl]

They can raise taxes and it won't do any good unless they cut spending

Where would you start?

it is time to have a Balanced Budget Amend. and have it have some real teeth in it.
We could not spend more then we take in , Only in two cases could we and it would have to be bad.

We've managed without a balanced budget amendment for more than 240 years, and during that time we've ALWAYS been in debt.

And we're still here.

I see no reason to hamstring a system that's been wobbling along just fine.

 

[bearpoker]

Biden is considering a major federal tax increase for the first time in nearly 30 years, report says

President Joe Biden is preparing to include a federal tax increase in his next big economic package, according to a Bloomberg report on Monday.

People familiar with the matter told the outlet that the Biden administration is working on a follow-up spending bill to the recently-enacted $1.9 trillion coronavirus stimulus. The initiative is expected to have a bigger price-tag, and may raise the corporate tax rate and the income tax rate for high-earning individuals to offset the spending, Bloomberg reported.

The move would represent the first major federal tax hike in nearly 30 years, per Bloomberg. The last significant tax increases were implemented in 1993 under the Clinton administration.

Sources with knowledge of the private discussions told Bloomberg that current ideas involve raising the corporate tax rate from 21% to 28%, bumping up the income tax rate for individuals who earn more than $400,000 per year, increasing the capital-gains tax rate for individuals who earn at least $1 million per year, expanding the estate tax, and "paring back" tax preferences for pass-through businesses, which are not subject to corporate taxes, such as limited liability companies. https://www.businessinsider.com/bid...l-tax-increase-almost-3-decades-report-2021-3

The tax hikes are not nearly as alarming as the "next big economic package." WHY do we need another "big economic package??" Thanks!!

I thought the next big economic package was the infrastructure bill. Gotta fix the bridges and dams sometime.

 

[Tbird19482]

Where would you start?



We've managed without a balanced budget amendment for more than 240 years, and during that time we've ALWAYS been in debt.

And we're still here.

I see no reason to hamstring a system that's been wobbling along just fine.

Yes we have done without it so far but it is getting out of hand , we borrow money from the SS system and can't pay it back and now people are calling it an entitlement system and it is the people that paid into it for 50 year like myself are entitled to get their money back.
as for cutting stuff foreign aid could be a start , I know compared to a lot of other things in the budget it isn't much but it would be a start
there is waste in the budget that can be cut and there is a lot of pork that can be cut
we would have to look at the budget better and start cutting some of this stuff
I remember when we were paying over 150 dollars for a toilet seat , when you could buy one for 1/10 of that
Hammers for 50/60 dollars apiece and other things.
I am not convinced a lot of this has been stopped and should be,
some of the things I know that purchasing agents do , and if they got found out they would lose their jobs. ex. one PA just happened to order 15 yds. of cement more for a state job that it didn't need, well they can't take it back so it had to be dumped some place , well it just so happened that that is just what the PA needed for a pad next to his house and the forms just happened to be set up, so that is where it got " Dumped "
things like that go on all the time
anouther ex. in Buffalo about 25 years ago they ordered new firetrucks well the PA wrote up the specs so only one co. could meet them and it was a really simple thing , Buffalo Mack was the only trucks with wood grain dashboards( stick on stuff ) and the PA was friends with a salesman so he wrote it so they had to have wood grain dashboards and Buffalo Mack got the bid. well that became knowledge to some people and was brought up at the city board meeting and was investigated and the PA was fired
things like this happen and should be watched
Have a nice night

 

[Hamish Howl]

Yes we have done without it so far but it is getting out of hand , we borrow money from the SS system and can't pay it back and now people are calling it an entitlement system and it is the people that paid into it for 50 year like myself are entitled to get their money back.

Yeah, SS should have been untouchable.

But aside from that, we've always been out of hand.

I remember when we were paying over 150 dollars for a toilet seat , when you could buy one for 1/10 of that
Hammers for 50/60 dollars apiece and other things.

Those things never cost that much. The cost of arming freaks in dismal 3rd world nations is sorta smeared across normal budget items.

 

[Visbek]

They can raise taxes and it won't do any good unless they cut spending
it is time to have a Balanced Budget Amend. and have it have some real teeth in it.

hahahaha

Hello? If we had a balanced budget amendment in place, we would have been completely screwed by COVID.

Back in the real world, we see in real time that spending massive sums in an emergency hasn't caused any of the problems proclaimed by the Harpies. Stimulus and extended unemployment didn't cause inflation, or unemployment, or thwart the economy, or open the gates of Hell, or whatever else conservatives have spent decades screaming about.

 

[Visbek]

A "couple of quarters"? Where did you get that?

lol... From this thing called "basic sanity."

Conservatives and right-wing whack jobs have spent literally decades screaming about inflation, and it keeps Not Happening.

The 2008 stimulus, and years of super-low interest rates, and extraordinary Fed measures? None of it cause massive inflation.

The 2020 stimulus and Fed moves? They didn't cause runaway inflation either. In fact, we were headed straight for a deflation last spring, with inflation plummeting to 0.5%, before climbing to a whopping... 2.3%.

The US can easily handle 5% inflation -- a rate I don't think we've seen since the 70s. And of course, it would be fairly easy for the Fed to tamp down serious inflation. Wall Street and the crazy speculators will not like higher interest rates, but there is a ton of room to go up before seriously harming the ability to lend.

So, yeah. No sane person should be worried about inflation right now.

 

[Taylor]

The US can easily handle 5% inflation -- a rate I don't think we've seen since the 70s.

Well, sure. The US can easily handle buying every adult a brand new car, too. All you do is drain the nest egg of retirees and frivol it away.