As
Caesar Disgustus leads his band of highwaymen into the midterm
elections, his signature assault upon fiscal responsibility and good
governance is about to be undermined by hidden tax increases. Tax
increases in the form of billions collected under the guise of
tariffs.
Disgustus
has imposed—unilaterally and without Congressional authorization--
ten percent tariffs on 200 billion dollars worth of Chinese goods,
rising to 25% by the end of the year. This is “in addition to
the 25% tariff on $50 billion worth of Chinese imports Trump imposed
during the summer. So by election day in November, Trump will have
placed new tariffs on $250 billion worth of stuff Americans buy every
day. “ (1)
Rick
Newman, writing for Yahoo News, continues, “The new tariffs will
raise the cost of thousands of everyday items, including electronics,
appliances, bicycles, tires, toys, clothing and footwear. Based on
last year's level of imports, the new China tariffs amount to a tax
hike of 32.5 billion per year. If the latest set of tariffs rises to
25% and stays in place for 2019, the total additional tax would be
62.5 billion next year. The Trump tax cuts, by contrast, lowered tax
payments by about 130 billion per year. So by this simple math, the
China tariffs would offset about one-fourth of the Trump tax cuts
this year, nearly one-half next year” (2)
Note
who is paying the taxes. The wealthiest and corporate interests, who
usually eschew cheap Chinese imports unless they are manufacturing
and selling them, are not paying these taxes. The working class—the
Walmart folks—are paying them. It's the old Rescumlickan paybook.
Pass a major tax cut that gives away the bank to the filthy rich and
breadcrumbs to the middle class, and increase taxes through more
hidden means to cover the cost. In the 80's that involved, for
instance, eliminating deductions for interest paid on commercial
debt—durable goods like autos and appliances for instance—and on
credit cards and medical expenses. Hell the folks won't notice and
by the time they do it will be too late. Now we have this obscene
exercise in greed being paid for by paying through the nose at the
check-out counter where it is hard to add up exactly what it will
cost each of us.
But,
as China shows no signs of capitulating to the pressure and as an
open-ended trade war looms another dynamic take shape. Capital is
fleeing the Chinese markets and moving to New York.
Again,
as noted by Newman, the Shanghai stock index is down 21% this
year, for instance, and it just hit the lowest level since 2014. The
S&P 500, by contrast, is up nearly 7% and close to record highs.”
(3)
This
is a novel twist on the old theme demonstrating that the capitalist
pigs are losing a lot of sleep keeping up at night scheming of ways
to not only further plunder the middle class but help inflate the
value of our stocks and bonds in the process. They win, coming and
going. Heads they win; tails we lose.
How
this will play in Peoria remains to be seen. Perhaps the pain will
not be felt in time for the next election but already the “trade
policy is already unpopular, with 61% of Americans saying they
disapprove, in one poll. Anecdotal reports of collateral damage,
such as farmers losing access to foreign markets or U.S. Companies
hurting from higher costs related to tariffs, already seem to be
hurting Republican as they fight to keep control of Congress in the
upcoming midterms. Trump doesn't seem to care...” (4)
The
Rescumlickan tax cut is already so unpopular that the Scum refuse to
run on it. It remains to be seen whether the public will see the
tariffs for what they are—a tax increase to pay for it—in time
for the next election. Let us hope that there is an epiphany on the
road to Damascus.
In
the meantime...
”An
Br'er Putin, he jus' laugh and laugh”
Impeach
and Imprison.
_______________________
- Ibid
- Ibid
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