‘Damn it … I’m sick and tired of ordinary people being fleeced’: Biden defends corporate tax hike

Sure. You're raising disagreement where none exists.

HOWEVER, local infrastructure is highly important to our nation as a whole.

For just one example, ports such as LA, NYC, Seattle, NOLA, etc. need serious transportation infrastructure for the benefit of the USA. Having international trade stalled at our seaports is absolutely NOT acceptable.

Borrowing predates Reagan.

But, I did't say ANYTHING about that. What Reagan did is start the move to have us NOT PAY OUR BILLS - a pattern that has followed through today, leaving us with crumbled infrastructure.

 

They went many years tax free because they didn't have profit. They reinvested it.

That would be like you not having a job and somebody complaining you don't have income tax.

Corporations pay taxes on profit.

 

I understand how the current tax laws work and get that Amazon technically didn't break the law. My problem is when a big corporation pays lower taxes than the small businesses its killing because its investing in infrastructure thats killing them.

 

I hear the concern, but disagree.

I dont think the tax code should be used to pick winners and losers or manipulate the market.

If Amazon built a better mouse trap, it's a move towards efficiency and progress.

 

But when you tax the small businesses more than the big corporations, that is rigging the market against the small businesses. You are picking big corporations and shifting the market toward monopolization.

 

the dot com bubble never popped

 

I think we are all stuck here. We have the Fed saying "We've got it" but we've seen the Fed lose complete control twice in a decade between 1999 and 2009.

The Sept 2019/COVID/Crude went NEGATIVE was a damn interesting 8 months for sure, and they seemed to have kept the tires on the road. And look at the Fed's balance sheet.

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Now when they buy treasuries to fund the debt, they protect the government from market forces that would drive up the cost of borrowing. I believe it works out per the following:

1. Treasury wants to raise a $1,000 to fund the deficit.
2. Fed takes the $1,000 note at 1% and credits the Treasury $1,000
3. When the note comes due, the Treasury gives the Fed $1,010
4. The Fed uses the payment to repay the $1,000
5. The Fed turns over the $10 in profit, to the Treasury.

Now if inflation starts to set in, the Fed will slow or stop their Treasury purchases, which leaves them for the open market to buy. Everything remains the same except that the borrowing cost will likely be more than $10 and it remains in the hands of whoever purchased it in step 2.

Here is an interesting chart on Fed management of the balance sheet:

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• The last half of 2014 they stopped adding to the balance sheet. ​
• From 2015 to 3Q 17 they rolled expiring notes, keeping it almost flat with just a bit of the barest of downward slopes. ​
• Then they decided that Trump's trade policies were going to be inflationary, so they started letting the notes expire, rolling over fewer of them, draining liquidity ahead of what they thought would be inflationary forces​
• 2018 to 8/2019 they reduced their balance sheet by 15%, or $700B - they were wrong on their tariff inflation call and we had the liquidity lock up in Sept. that you mentioned.​

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It would be interesting to find out what their takeaway was from that.

I don't know. I see a couple of very convincing drops.

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does not include interest rates

 

If they are being taxed more, it means they had more profit.

I support flat taxes for this very reason on corporations based on their end of year profit.

 

Interest rates are in a long term 40 trend of overall decline. What does that have to do with the dot.com burst or lack?

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the bubble has brought interest rates down since the 80's in this chart

 

How does "the bubble" reduce interest rates?

 

it hides globalism and theft.

 

Got it. Liquidity posing as prosperity and solvency.

What do you think of this chart?

That's quarterly tariff income to the US Treasury (multiply by 4 to annualize). The jump on the right side was all Trump's work.​