TAX POLITIX
The Politics of Taxes
Why Buybacks are Not Bad
A company will try to use its available funds to best improve its business, such as by expanding its operations, hiring additional workers, opening new factories and offices, research & development including creating new products, paying down debt, or acquiring new companies. But when it decides that it has more money than it could put to good use in its business, it can use the money in various ways. It could pay dividends. But another option is to buy back some of its shares...
Thoughts On the Eviction Moratorium
The current national moratorium on evictions (which is likely to be extended yet again) is problematic for several reasons. The CDC (of all agencies) issued its rule without any particular act of Congress granting it the power to do so under the auspices of a generic “public health and safety” threat. What’s more, the federal eviction ban essentially overtakes any and all existing laws between tenants and landlords at the state level.Because of the moratorium, landlords are now unable to...
Warnock and Racism
I was disappointed that a black socialist anti-Semite became a Senator of the United States. While it is well known that he is a progressive and socialist, it’s even more troubling that he is openly anti-Semitic.In 2019, he signed a letter with other clergy members describing “the heavy militarization of the West Bank, reminiscent of the military occupation of Namibia by apartheid South Africa.” Likewise, during a sermon in 2018, he proclaimed, “We saw the government of Israel shoot down...
Thoughts on Qualified Immunity
There is a renewed push for ending qualified immunity especially since the unrest earlier this summer. Qualified immunity affords police officers protection from litigation for their actions in pursuit of the law, while immunity is lost if an officer violates a citizen’s constitutional rights. At least, that is what qualified immunity was before it metastasized into a near entitlement shield for officers and other public officials. Qualified immunity does not need to be abolished but it should...
AOC’s Economic Illiteracy
When we have a generation of voters who take their policy lessons from a person who believes that billionaires shouldn’t exist, we are in trouble. What’s more, she boasts of having an economics degree but her ideas are not rooted in reality. Let’s take a look at some of her more unorthodox economic positions: Green New Deal: AOC created a sweeping bill that puts the environment impact as the basis for economic policy. Not only is this inherently anti-free-market, her objectives of addressing...
More on CON Laws
Certificate of Need laws, otherwise known as CON laws, are laws required in many states and some federal jurisdictions before proposed acquisitions, expansions, or creations of healthcare facilities are allowed. They are also absolutely ridiculous and entirely based entirely on cronyism. CON laws are irresponsible, damaging to the economy, and a prime example of an assault on economic liberty. A recent report by Mercatus noted that “Nearly six decades ago, New York became the first state to...
Alan Blinder’s Blunder
Alan Blinder is a distinguished economist who insists on misleading the public about economic matters. The latest affair is found in Blinder’s Op-Ed, “A Speedy Recovery Depends on More Aid: Will Trump Deliver?” wherein Blinder deliberately misleads his readers about the economy and the road to recovery. Here are some of his statements: “Mr. McConnell is a roadblock to more relief funds.” It wasn’t McConnell, but Pelosi who refused to talk. McConnell put forth a relief package but because...
Overpaid Executive Tax
One of the most outrageous and economically stupid measures to pass on Election Day came out of San Francisco: a new tax called the “Overpaid Executive Tax.” It’s really as bad as it sounds. This law levies a .1% surcharge on any company in San Francisco whose top executives earn 100 times more than the “typical worker.” It was enacted as a means to fight against pay inequality, but all it does is show how incompetent its proponents really are. It’s worth noting that this tax applies to both...
Why the GILTI Tax Matters
One of the most overlooked yet troubling aspects of Biden’s plan is his doubling of the Global Intangible Low-Taxed Income (GILTI) tax. GILTI taxes items that generate foreign income and profits owned by American companies with foreign affiliates. This is troubling, because GILTI taxes American companies on income that has virtually nothing to do with anything in the United States. It’s bad enough that the current tax rate is 10.5%; Biden wants to raise this to 21%. The tax laws of every...
Biden Won: What Does That Mean For Tax Changes?
Now that Biden has been elected President, it's important to take stock of what tax changes are likely to be coming. Merrill Lynch did a good job putting together a side-by-side comparison of current tax law in four areas: income, estate, social security, and corporate, and then possible changes in those areas according to Biden's campaign tax plans. The summary is below. It is notable that in just about every instance, there will be a tax increase under Biden's plans. How this will impact the...
TAX
Tips
Getting Ready For Tax Season? Here are the 2015 Rates You’ll Need
Tax season has begun. Normally, the deadline for filing your federal tax return is April 15. But because the Washington D.C. Emancipation Day holiday falls on April 15 this year, Tax Day is the Monday after, April 18th. Last spring, Forbes put...
Government Outpaces Private Sector in Wages and Benefits
Government wage increases vastly outpaced the public sector, and the number of government jobs have soared. For the federal government alone, there are 2.1 million workers, “costing over $260 billion in wages and benefits this year.” according to...
Taxpayer Advocate 2015 Annual Report to Congress
The Intersection of Obamacare and Immigration
The Wall Street Journal put together an excellent editorial yesterday on the intersection of Obamacare and immigration. First, starting in 2016, employers with 50 or more full time employees are required to offer health insurance for each of their...