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Trump gloats about losses by conservatives, knew he actually lost the election

Liberty Unyielding - Thu, 01/07/2021 - 5:10pm

Donald Trump is reportedly happy that conservatives lost the Georgia senate elections on January 5, even though that gave the Democrats control of the Senate and both houses of Congress. One of the two Democrats elected on Tuesday is a cop-hating radical, who supports releasing dangerous criminals, as LU discussed earlier. The New York Times’ […]

The post Trump gloats about losses by conservatives, knew he actually lost the election appeared first on Liberty Unyielding.

Schumer calls for Trump’s immediate ouster via impeachment or 25th Amendment

Liberty Unyielding - Thu, 01/07/2021 - 1:47pm

'What happened at the U.S. Capitol yesterday was an insurrection against the United States, incited by the president. This president should not hold office one day longer.'

The post Schumer calls for Trump’s immediate ouster via impeachment or 25th Amendment appeared first on Liberty Unyielding.

Bob Dylan and the Capital Gains Tax

Center for Freedom and Prosperity (CF&P) - Thu, 01/07/2021 - 12:52pm

A “capital gain” occurs when you buy something and later sell it for a higher price. A capital gains tax is when politicians decide they get to grab a slice of that additional wealth.

I’ve repeatedly explained that it is economically foolish to have such a tax because it punishes saving, investment, risk taking, and entrepreneurship.

Simply stated, the capital gains tax is “double taxation,” which is what happens when there are additional layers of tax on income that is saved and invested.

I’m motivated to address this issue again because of a recent column in the Washington Post by Charles Lane.

He wants us to believe that singer-songwriter Bob Dylan has been rewarded by the capital gains tax.

Bob Dylan…just sold the rights to “Blowin’ in the Wind” and 600 other songs to Universal Music Publishing Group for a reported $300 million. …This is a tribute to his genius and, on the whole, to a political and economic system that rewards artists… Nevertheless, some socially conscious musician could write a song protesting the Dylan deal, because of what it reveals about that engine of irrationality and inequality known as the U.S. tax system. A cardinal defect of the system is highly favorable treatment of capital gains relative to ordinary income. The top rate on the former stands at 20 percent; on the latter, it is 37 percent. …the obscure 2006 law known as the Songwriters Capital Gains Tax Equity Act, which permits songwriters — but not painters, video game makers or novelists — to treat the proceeds from selling their copyrights as capital gains, too. …The capital gains break, for him and for others similarly situated, is basically a windfall. …President-elect Joe Biden supports equalizing capital gains and ordinary income rates, at least for households earning more than $1 million. If kept, Biden’s promise would restore a measure of equity and efficiency to the tax system.

At the risk of understatement, I disagree.

What Mr. Lane doesn’t appreciate or understand is that the Universal Music Publishing Group purchased the rights to Dylan’s music for $300 million because they expect his songs to generate more than $300 million of income in the future.

And that future income will be taxed when (and if) it actually materializes.

In other words, a capital gains tax is – for all intents and purposes – an added layer of tax on the expectation of future income. Double taxation in every possible sense.

This is why I’ve pointed out that Biden’s plan will make the tax code more punitive, not more equitable and efficient as Lane asserted.

Since we’re on the topic of capital gains taxation, I’ll also cite some relatively new research from the San Francisco Federal Reserve.

Here are the key findings in the working paper from Sungki Hong and Terry Moon.

This paper quantifies the aggregate effects of reducing capital gains taxes in the long run. We build a dynamic general equilibrium model with heterogeneous firms facing discrete capital gains tax rates based on firm size. We calibrate our model by targeting relevant micro moments and the difference-in-differences estimate of the capital elasticity based on the institutional setting in Korea. We find that the reform that reduced the capital gains tax rates from 24 percent to 10 percent for the firms affected by the new regulations increased aggregate investment by 2.6 percent and 1.7 percent in the short run and in the steady state, respectively. Moreover, a counterfactual analysis where we set a uniformly low tax rate of 10 percent shows that aggregate investment rose by 6.8 percent in the long run. …Our findings suggest that reducing capital gains tax rates would substantially increase investment in the short run, and accounting for dynamic and general equilibrium responses is important for understanding the aggregate effects of capital gains taxes.

And here are two of the key charts from the study.

And here’s the part of the study that explains the above charts.

Panel A in Figure 2…shows the parallel trend in investment between the affected and unaffected firms…positive and statistically significant coefficients after the year 2014 indicate that lower tax rates induced the affected firms to increase investment. Panel B in Figure 2…shows the parallel trend in investment between the affected and unaffected firms…positive and statistically significant coefficients after the year 2014 indicate that lower tax rates induced the affected firms to increase the size of tangible assets.

The bottom line is that is that you get higher wages with more productivity…and you get more productivity with more investment…and you get more investment if you don’t impose harsh tax policies on people who invest.

Which is why the correct capital gains tax rate is zero, whether you’re looking at theory or evidence.

Which is the core message in my video on capital gains taxation.

P.S. There’s also a video explaining why it’s especially wrong to impose the capital gains tax on “gains” that are solely the result of inflation.

P.P.S. And somebody needs to do a video on why it’s an awful idea for the government to tax capital gains that only exist in theory.

Wasting no time, Dems are pressuring Justice Stephen Breyer to retire

Liberty Unyielding - Thu, 01/07/2021 - 12:20pm

Democrats have no desire to repeat the lesson they learned from the Ruth Bader Ginsburg fiasco.

The post Wasting no time, Dems are pressuring Justice Stephen Breyer to retire appeared first on Liberty Unyielding.

Trump robbed conservatives of victory in Georgia

Liberty Unyielding - Thu, 01/07/2021 - 11:37am

The fact that leftist activists in Fulton County might be 'ballot harvesting' or letting people vote twice does not change the fact that your vote in your community counts in full, and can cancel out an urban left-winger's fraudulent vote.

The post Trump robbed conservatives of victory in Georgia appeared first on Liberty Unyielding.

Twitter suspends Trump’s calls for ‘peace’

Liberty Unyielding - Thu, 01/07/2021 - 11:25am

Alexander Hall, mrcNewsBusters

The post Twitter suspends Trump’s calls for ‘peace’ appeared first on Liberty Unyielding.

Requiem for a doomed nation

Liberty Unyielding - Thu, 01/07/2021 - 10:00am

Early this morning Joe Biden’s Electoral College victory was certified by Congress. Soon afterward Donald Trump made it official in a Twitter post, committing 'to an orderly transition on January 20th.'

The post Requiem for a doomed nation appeared first on Liberty Unyielding.

Capitol Violence leads to curfew in D.C. and Northern Virginia

Liberty Unyielding - Wed, 01/06/2021 - 6:48pm

Armed Trump supporters stormed the U.S. Capitol today, in an utterly disgraceful assault on our democratic system. You can see a picture of police detaining protesters outside the House Chamber at this link. “Protests turn deadly,” resulting in one fatality, reports Fox News. “Woman shot during Capitol Violence dies as curfew goes into effect.” “Congress […]

The post Capitol Violence leads to curfew in D.C. and Northern Virginia appeared first on Liberty Unyielding.

Why the Republicans lost in Georgia

Liberty Unyielding - Wed, 01/06/2021 - 5:28pm

Why did Republicans lose in Georgia? I went and asked some Georgians. Some voters viewed Trump’s actions as being an assault on free and fair elections. He alleged fraud. They viewed that claim as insincere, and as a pretext for overturning a valid election that reflected the will of the people. One cited the fact […]

The post Why the Republicans lost in Georgia appeared first on Liberty Unyielding.

$2,000 checks from the government are stupid, but popular

Liberty Unyielding - Wed, 01/06/2021 - 1:57pm

Everyone wants a check from the government, if they think it can be paid for by cutting imaginary government spending on something else.  That’s why many people want the government to send every American $2,000, as coronavirus relief. They wrongly think those checks can be paid for merely by cutting kinds of government spending that […]

The post $2,000 checks from the government are stupid, but popular appeared first on Liberty Unyielding.

Biden to pick Merrick Garland for attorney general

Liberty Unyielding - Wed, 01/06/2021 - 1:38pm

Garland will also have to decide how to handle a special counsel’s investigation into the origins of the Trump-Russia probe.

The post Biden to pick Merrick Garland for attorney general appeared first on Liberty Unyielding.

The Suddenly Real Threat of a Higher Corporate Income Tax Rate

Center for Freedom and Prosperity (CF&P) - Wed, 01/06/2021 - 12:35pm

After November’s election, I figured we would have gridlock. Biden would propose some statist ideas, but they would be blocked by Republicans in the Senate.

All things considered, not a bad outcome.

But Democrats won the run-off elections yesterday for both Georgia Senate seats, which means they now have total control of Washington.

And that means, as I recently warned, a much bigger threat that Biden’s proposed tax increases may get enacted.

That won’t be good news for America’s economy or American competitiveness.

Today, let’s focus on the biggest tax increase that the President Elect is proposing.

In an article for National Review, Joseph Sullivan writes about the adverse impact of Biden’s increase in the corporate tax rate.

Biden’s corporate-tax proposal is remarkable. …If the U.S. adopted Biden’s proposed federal tax rate, its overall corporate-tax rate would not be “in line” with the rest of the G7. Assuming U.S. state and local corporate taxes stayed the same, Biden’s proposal would result in nearly the highest overall corporate-tax rate in the G7, according to data from the OECD. The U.S. would be tied with France. …The average overall corporate rate among the G7 has fallen to 25 percent… With the G7 average trending in one direction, Biden would move the U.S. in the opposite direction.

In other words, while the Biden team claims that a higher corporate tax won’t be too damaging because it will be similar to the rate in other major nations, the U.S. actually will be tied with France once you include the impact of state corporate tax burdens.

Here’s the chart included with the article.

And don’t forget that there are many other economies where the corporate tax rate is well below the G7 average.

The bottom line is that the United States currently ranks only #19 out of 35 nations in the Tax Foundation’s competitiveness ranking for OECD nations.

The good news is that being #19 is much better than being #31, which is where the U.S. was in 2016.

The bad news is that Biden wants to undo much of the 2017 reform, as well as impose other tax increases. And that means a much lower competitiveness score in the future.

Which ultimately means lower wages for American workers.

P.S. Although the proposed increase in the corporate rate is theoretically the biggest revenue raiser in Biden’s tax plan, I will safely predict that it won’t raise nearly as much revenue as projected by static revenue estimates. I wasn’t able to educate Obama on this issue, and I’m even less hopeful of getting through to Biden.

———
Image credit: geralt | Pixabay License.

Biden performs ‘The Ballad of Jon and the Reverend’

Liberty Unyielding - Wed, 01/06/2021 - 11:46am

Considering that he couldn't remember Barack Obama's name while on the campaign trail, referring to him as “the last guy,” it's something of a minor achievement that Joe Biden came as close as he did to identifying the two Democratic candidates from Georgia who were running (successfully in once case as it turns) for Senate seats.

The post Biden performs ‘The Ballad of Jon and the Reverend’ appeared first on Liberty Unyielding.

Flashback: Obama, Hillary, other Democrats object to certifying Electoral College votes

Liberty Unyielding - Wed, 01/06/2021 - 11:20am

'I would be standing here saying this no matter what the outcome of the election because I still think the best rule in politics is the Golden Rule: Do unto others as you would have them do unto you.'

The post Flashback: Obama, Hillary, other Democrats object to certifying Electoral College votes appeared first on Liberty Unyielding.

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