Wednesday, August 1, 2012

You aren't supposed to notice

The Federal Reserve says no new stimulus after today's meeting. They could buy mortgage backed securities as well as reduce the amount they allow banks to deposit at the Fed with interest. Either of these things would boost the housing market. Home prices are already going up in all markets, but there still is a lot of inventory on the banks books, so that might improvement might evaporate if they decide to start dumping it. If the banks think the market will continue to improve they might not be in a rush to do that, but the Fed isn't going to help.

The corporate media is labeling Harry Reid's outing of Mitt's zero tax rate and vastly larger fortune as "wild speculation". Harry has a source from inside Bain that he knows personally, the news media would print material like this as fact. That is if they weren't on Romney's side, (not so much on Willard's side, as they are in the pockets of billionaires who think only peasants like you should pay taxes).

Mitt has been coy with reporters about the tax rate he pays and makes nervous assertions that he's been audited and complies with the law. Given his history, it's likely that Mitt's Swiss bank account was in fact a tax evasion scheme. If he had to take the IRS pardon they were giving Swiss bank account holders who came clean on dodging taxes it would explain everything. Just not paying any taxes probably wouldn't lose him any votes, his base is that stupid. Criminal behavior would go to another level, and this would be apparent if he showed his returns. The time period fits, otherwise you would think he would go back further with releasing his tax returns. One year is a joke and he knows it, but going back before that would get into the IRS amnesty period.

The NY Stock Exchange had to suspend trading after the robot traders ran amok and started killing all the humans. Okay, that was just wishful thinking, they merely revealed, with erratic trading, the fraud that's going on everyday. The machines are simply supposed to skim the market of trillions of dollars in a way that you won't notice.

August 1st is the deadline for insurance companies to refund excess premiums under Obamacare. This year it totals $1.1 billion that went out as checks to the policy holders, either individuals or company plans. If your employer got a refund, then you will get a letter informing you that the money must be distributed to you or applied to future premium reductions in some way. This is a result of insurance companies being required to pay 80% or 85% (depending on size of group) of the premiums providing actual healthcare. Instead of as little as half of it. Republicans really don't want you to notice this.

The big advantage isn't the refund but the increased healthcare provided. To cut costs the bureaucratic infrastructure designed to avoid providing coverage has to be eliminated. Unfortunately this probably won't be noticed. It will start to show up in improved outcomes and gradually move the US up from the bottom tier in world healthcare. Who knows, maybe it will be featured in the opening ceremony the next time the Olympic Games are held in the US. No, if it works nobody will ever notice, because the Republicans will continue to portray it as a dismal failure no matter what.


Anonymous said...

I don't even think criminal tax evasion would hurt Willard with his base. These are people who believe that paying any taxes is for suckers. A generation ago it was considered patriotic-even gangsters like Frank Costello made note of their patriotic duty to pay their fair share of taxes. That all ended with Ronald Reagan and the notion of anything associated with government is bad.

The very rich believe that like France under Louis XVI, only the lower and middle classes should be taxed. Don’t forget, the very rich are sacred (like the nobles and clergy during Louis’ time) because they are the “job creators.” Of course they really aren’t-small businesses are the greatest employers in the US and nearly 75 percent of them fall into the 0-15% marginal tax bracket. In fact, if Willard gets elected, his tax plan would raise taxes on 95 percent of Americans to pay for further tax cuts for those at the top. Who knows what else he would do-like make all IRA’s tax-free (versus tax deferred). This would be a windfall for Willard, who reportedly holds nearly $100M in his IRA and would be subject to Required Minimum Distribution (what accountants and financial planners dub a taxable event) in 2017.

Another would be to eliminate all estate taxes. This would put a lot of estate planning attorneys (i.e. Democratic voters) out of business. It would also allow Mitt to pass on countless of millions to his children. But more importantly, it would eliminate $1 Trillion in Federal revenue over the next 10 years. And to think that the estate tax was championed by one of the Republican Party’s most famous leaders-Theodore Roosevelt.

Fake_William_Shatner said...

I'd also heard it might be likely that some of Mitt's "religious donations" might have been part of a widespread Mormon scheme to bypass political influence laws.

The "good wealthy Mormons" who tithed, were asked instead to send the money to places like California's Prop 8 to push the anti-gay marriage agenda. Likely they've been doing more of this since it was successful.

So while it was a donation to Mormonism, it would be politically inconvenient to remind everyone that the Mormons might have an agenda. MOST all of these large corporate religions have some agenda they are scheming on, like the 700 Club investing in Conflict Diamonds -- but it's not cricket to remind each other.

The tax fraud angle might be the least of it politically.