TAX POLITIX
The Politics of Taxes
Less Government, More Free Trade
A recent article in the WSJ, “Is the U.S. Moving On From Free Trade? Industrial Policy Comes Full Circle” should have ultimately been an Op-Ed because it was a baseless attack on the concept of free-trade. It starts out okay, pointing out that free markets, free trade and globalization have been the bedrock of a healthy US economy, especially since WWII. But then the author ignorantly blathers on and ultimately concludes that globalization based on neoclassical free-trade doctrine is wrong. ...
Based in Law, not a President
In a now-deleted Tweet written a week before midterms, President Biden tried to take credit for the Social Security increases that recipients will receive in 2023. The White House twitter account gleefully announced that “Seniors are getting the biggest increase in their Social Security checks in 10 years through President Biden’s leadership.” The problem is that Social Security increases are based on a formula known as COLA, or cost-of-living adjustment, which measures inflation and the...
Biden Continues His War on Energy
Biden told one of the biggest whoppers of his presidency during a speech today when he went after oil and gas companies and accused them of “war profiteering” after companies posted record profits. But what he purposefully left out was the fact that his own war on energy has directly contributed to the situation. Don’t forget that Biden once vowed to “end fossil fuels”. It is laughable that Biden chastised Exxon, Shell, and other companies, saying “They have a responsibility to act in the...
Record Tax Collection in Fiscal Year 2022
From October 2021 - September 2022 (FY2022), the federal government collected more than $4 trillion this year. The $4,896,119,000,000 of revenue was a record, as shown by the Monthly Treasury Statement. The prior record was FY2021, in which the government collected $4,377,816,830,000. This constitutes a nearly 12% year-over-year increase. These are both in "constant September 2022 dollars." The only other time the government collected more than $4 trillion was during the Obama administration...
Dimon Warns of Recession
Though the head of JP Morgan Chase feels that the economy is still doing okay, he foresees a recession in 6-9 months. This is due in part to "the impact of runaway inflation, interest rates going up more than expected, the unknown effects of quantitative tightening and Russia’s war in Ukraine." He further implored that the Fed “waited too long and did too little” as inflation increased to its highest rate in 40 years. Though they are aggressively raising rates now to curb inflation, raising...
It’s Time to Repeal the Jones Act
The Jones Act, as you know, requires that all cargo shipped between U.S. ports be carried by U.S.-built, U.S.-crewed, U.S.-owned ships. It makes any business involving shipping between Puerto Rico and the mainland impossible, thereby currently impeding the recovery effort from Hurricane Ian. Ships with supplies and fuel are ready to aid the people of Puerto Rico -- if only they could dock there. The Jones Act puts an unnecessary burden on our U.S territories; exempting Puerto Rico...
Biden and the COVID Emergency
How can Biden get away with saying the pandemic is over, at the very same time his attorney wrote the legal opinion that debt forgiveness was constitutional because of the COVID State of Emergency? He is trying to play both sides. On 60 Minutes this past Sunday, President Biden declared that “The pandemic is over. We still have a problem with Covid.” He furthered this assertion by reiterating “the pandemic is over. If you notice, no one’s wearing masks. Everybody seems to be in pretty good...
The Economic Tragedy of COVID Relief
What is happening, as demonstrated by the Census, is that the government largess is taking some people out of poverty, but it is having an even greater and more dangerously perverse effect. It's making people overall worse economically and preventing them from moving up to the middle class while expanding the lower levels and destroying a generation of minorities. Biden is the poster child for the very people he's supposed to be helping and he's made it worse for them. This article in the WSJ,...
WSJ: Income Equality, Not Inequality, Is the Problem
Phill Gramm and John Early do a nice job laying out the misnomer that income inequality is the problem. This concept of inequality really became a selling point during the Obama administration when the Democrats consistently implored that "millionaires and billionaires" should "pay their fair share." But the simple fact remains that income inequality isn't the actual problem with the economy. The problem lies in the fact that, due to the massive amount of government transfer payments, the...
The Average Joe and the IRS
The Internal Revenue Service is inept to such a degree that it could rightly be called criminal. The problems go beyond the numerous cited issues, such as only answering 10% of taxpayer calls or a backlog of 21 million unprocessed tax returns. The Treasury Inspector General for Tax Administration (Tigta) 2017 report stated that the IRS took to seizing property from its targets before even conducting interviews. Tigta also reports that even when interviews were conducted, the IRS failed to...
TAX
Tips
The IRS Scandal Continues: Judge Orders Release Of Target List
We're coming up on three years since the IRS scandal broke in May 2013. Most Americans have certainly forgotten about it, especially since the former head, Lois Lerner, went wholly unpunished. But some targeted groups have not forgotten about it,...
IRS Tax Tip 2016-44: Tax Refund Offsets Pay Unpaid Debts
Tax Refund Offsets Pay Unpaid Debts If you can’t pay your taxes in full, the IRS will work with you. Past due debts like taxes owed, however, can reduce your federal tax refund. The Treasury Offset Program can use all or part of your federal refund...
IRS Tax Tip 2106-43: Military Members Get Free Tax Help
Military Members: Get Free Tax Help The IRS offers free tax help to members of the military and their families through the Volunteer Income Tax Assistance program. VITA is available both on and off base including sites for military members...
IRS Tax Tip 2016-41: Interest Rates
Interest Rates Remain the Same for the Second Quarter of 2016 WASHINGTON – The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning April 1, 2016. The rates will be: three (3) percent...