Biscuit (Noun) : A person who is willfully ignorant and almost certainly incompetent

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Spotting Incompetence

You really don’t have to have an economics degree (Alexandria Ocasio Cortez’s isn’t doing her any good) or even really be good at math to spot things that don’t make sense.

This morning I was greatly amused by this article where a liberal idiot talked about the Biden tax plan and excoriated “the rich.” You know those evil non-defined devils that don’t pay their fair share.

Click on this, read the article, and then come on back for some discussion.

Fake news right from the beginning, 1st line of paragraph 1: “The stock market shuddered this week when a detail of President Biden’s forthcoming “American Family Plan” leaked to the press.” They are referring to the fact he wants to raise taxes on capital gains to a whopping amount.

The Dow dropped a whopping .001% for the week. So we’ll go with “barely fucking moved” as the definition of “shuddered.” The total point drop for the week was 139 points. The market moves 139 points when the White House issues its weekly report on President Dementia’s bowel movements.

Our liberal friend here, however, is setting you up early in his article by saying that what he’s talking about is going to affect the market in a harrowing way. Tricky little bastard.

He then goes on to point out several statistics of what Biden would like to do in terms of changing tax rates in this country. Okay kids – Don’t Be a Biscuit – Why does he want to raise taxes? (Not a trick question).

Because he wants to raise revenues. He wants the government to bring in more than the $3,710000,000,000 (give or take a billion) the government brought in during 2020. Then he wants to buy votes with it, err, I mean “invest in America.”

And here is where our author steps in a pile of shit and hangs himself. He points out that the critics say that when combined with state tax rates people would be paying in excess of 50% on income in states like California and New York. Side note though – kudos to him he pulled out his thesaurus and called critics “fulminators” … lol what a tool.

And then he delivers the key sentence that negates the entire article and sinks the entire Biden “tax plan.” He says: “That’s on paper.”

So…. they really won’t be paying those taxes. He then admits it: “If anybody ever paid a combined capital gains tax rate above 50%, it would probably be due to incompetent tax advisors.”

So… you are going to raise tax rates, but the rich aren’t going to actually pay them?

Now, back to the economics degree I’m giving you for free (you’re welcome). We can get as complicated as you want, but in the end the stock market is no different than the toilet paper market – it is ruled by supply and demand.

If capital gains rates are raised, people will be less willing to SELL their stocks and pay the high tax rate. This limits the SUPPLY of stocks available for sale. The question becomes will there still be an equal amount of DEMAND for stocks? Alternative investments may become more popular. Real estate would almost certainly benefit as it’s a much more long term holding and has significant tax benefits against the cash flows it creates. My guess is that the stock market will stagnate and the real estate market will continue its climb. You know stagnate…. like move .001% in a week. Shudder!

So will raising these tax rates garner us more revenue? Maybe some, but not nearly what they will promise (of course). Many economists believe it may lower revenues, as the “fulminators” would point out saying higher taxes will reduce investments in business and the economy thus lowering growth (or worse putting us in recession).

This isn’t happening tomorrow. The buffoons in congress have pumped two YEARS worth of tax collections into the economy in the past 12 months and they want to do even more. THAT is not sustainable, and you’ll never be able to tax your way out of that. For now though, life goes on, people are stimmy rich and good luck finding employees to run your business. Six months from now…. that could get interesting in a hurry.

2 thoughts on “Spotting Incompetence”

  1. “Stimmy rich”? Now that’s rich. Keep it up.

    Also saw that the Democrats may propose permanent unemployment benefits. You know what that means don’t you?

    You guessed it — the new “permanently unemployed” class!

    Please make it (them) stop.

  2. Thomas “Pops” Petty

    What an absolute load of crap, tonterias, merde, you know, BS!

    “ Those tax evaders aren’t ordinary people who earn most or all of their income from labor. They’re wealthy Americans with multiple income streams and sophisticated strategies for concealing wealth and exploiting tax loopholes. If anybody ever paid a combined capital gains tax rate above 50%, it would probably be due to incompetent tax advisors.”

    This peach of a line is riddled with lies.

    First, if the rich socialists, Warren Buffet comes to mind, decry the “loop holes” (that HE’S USING), which require his secretary to pay more in taxes than he does, STOP USING THE LOOP HOKES & GIVE the GOVERNMENT 40% of your income. (On a side note, GOD only asks for 10%. Isn’t HE the better investment?)

    Second, the “Loop Holes” in the tax code were put there by CONGRESS. They can simply remove all loop holes & institute a flat tax. Even thus would create issues. The fairest tax is a sales tax. If you buy it? You pay a tsp on it. Mind you, We The People went to war with Mother England over a 2% tax. 2%!

    Finally, this little gem was in the article as well, “He’d boost the top individual income tax rate from 37% to 39.6% and raise the estate tax on holdings above $3.5 million.” This is also known as the “Death Tax.” You work your entire life, build a business, employ others, leave a legacy for your children & WHAM! The government swoops in before your body is cold & wants HALF of your estate! HALF!!! Why? You died & they can. This is theft & nothing more. You want to know why family farms are dying, the ESTATE TAX is the reason. The greed of Washington DC is killing Americans.

    Well written piece. You hit me more lit up than a lighter fluid bath with a Bic Lighter chaser.

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