December 4, 2017 • Paul Craig Roberts
I deplore the tax cut that has passed Congress. It is not an economic policy tax cut, and it has nothing whatsoever to do with supply-side economics. The entire purpose is to raise equity prices by providing equity owners with more capital gains and dividends. In other words, it is legislation that makes equity owners richer, thus further polarizing society into a vast arena of poverty and near-poverty and the One Percent, or more precisely a fraction of the One Percent wallowing in billions of dollars. Unless our rulers can continue to control the explanations, the tax cut edges us closer to revolution resulting from complete distrust of government.
The current tax legislation drops the corporate tax rate to 20%. This means that global corporations registered in the US will be taxed at a lower income tax rate than a licensed practical nurse making $50,000 per year. The nurse, if single, faces in 2017 a 25% marginal tax rate on all income over $37,950.
A single person is taxed at a rate of 33% on all income above $191,651. 33% was the top tax rate extracted from medieval serfs, and approaches the tax rate on US 19th century slaves. Such an upper middle class income as $191,651 sounds extraordinary to most Americans, but it is so far from the multi-million dollar annual incomes of the rich as to be invisible. In America, it is the shrinking middle and upper middle class incomes that bear the burden of income taxation. The rich with their capital gains from their equity holdings are taxed at 15%.
Even single individuals who earn between $1 and $9,325 are taxed at 10% on their pittance.
The neoliberal economists who are the shills for the rich, Wall Street, and the Banks-Too-Big-Too-Fail claim, erroneously, that by cutting the corporate income tax rate to 20% all sorts of offshored profits will be brought back to the US and lead to a booming economy and higher wages. This is absolute total nonsense. The money won’t come back, because it is invested abroad where labor costs are lower, if invested at all instead of buying back the corporation’s stock or buying other existing companies. After 20 years of offshoring US manufacturing and professional tradable skills and the incomes associated with the jobs, who is going to invest in America? The American population has no income with which to purchase the goods and services from new investment, and the American population’s credit cards are maxed out.
All that is going to happen is that Wall Street will calculate the lower tax rate into a higher equity price. Wall Street can do this without any of the offshored earnings coming home. Suddenly, everyone who owns equities will experience a boost in wealth, or the boost has already occurred in anticipation of the handout.
The deficit-conscious Republicans have put into the Bill for Enhancement of the Rich’s Wealth, cuts in social services in order to “save workers from higher interest rates from budget deficits.” This is more dishonesty. If the Fed lets real interest rates rise to any meaningful amount, derivatives will unwind, and the Fed will have to create trillions more in new dollars to keep its ponzi scheme in place. The deficit that results from the tax cut will be covered by the Fed purchasing the Treasuries, not by a rise in interest rates.
What we are witnessing in the US and indeed throughout the western world is the total failure of capitalism. Capitalism is now merely a looting machine. The financial sector no longer supplies capital for production. What the financial sector does is to turn discretionary consumer income into interest and fee payments to banks. Aggregate demand can only grow through debt expansion, and the consumers reach a point where they cannot expand their debt.
Capitalism, hiding behind “globalism,” which is misrepresented as a good thing when it is death itself, locates production where labor is cheapest, thus depriving First World labor of good wages and work opportunities and putting First World countries on the path to becoming Third World countries. Short-term profits and executive and board bonuses and stock options are maximized at the cost of the destruction of the domestic consumer market.
Plunder Capitalism also privatizes as much of the public sector, such as the military, as possible, thus driving up the cost of the Pentagon’s budget. Jobs that the soldiers themselves formerly did are given to politically-connected firms. What was once KP (kitchen patrol) is now provided by an outside private service. Private mercenaries hired by the Pentagon collect as much in a month as troops in the line of fire earn in a year. I don’t know that the army any longer has a supply organization other than the private business that has the contract.
Medicare and Medicaid are the next to be privatized, along with Social Security. The tax cut will result in deficit and high interest rate hype, and these lies will be used to save the workers from high interest rates on their mortgage, credit card, and student loan debt by scaling back or privatizing Medicare, Medicaid, and Social Security.
The environment and public lands will be sacrificed to the private profits of timber, mining, and energy companies. Grizzly bears and wolves are losing their protection under the endangered species act so that states can sell trophy hunting licenses to men who have to prove their manhood by killing an animal with a high-powerful rifle at a safe distance.
What we are witnessing is the complete looting of America and the entirety of the West. While the Western World collapses, the insouciant, submissive people sit there sucking their thumbs while they are being ruined.
Nothing is left of the West except looters at work.
This tax bill is an abomination, an act of brutal plunder. Its sponsors should be tarred and feathered and ridden out of town on a rail, if not hung from a lamp post.
Source: Scott Anthony
GOP Tax Bill (Video of Vote) Text “Tax Cuts and Jobs Act” / H.R. 1 (Will Go Back To House For Final Vote December 4th)
Watch Live: Senate Votes and Passes GOP Tax Reform Bill (H.R. 1)
How is the above information on the GOP Tax reform Bill (H.R.1) reconciled with the following on this alleged “missing” $21 trillion?
Missing $21 Trillion Means Federal Government Is Lawless – Dr. Mark Skidmore
By Greg Hunter • December 3, 2017 • Political Analysis 125 Comments
Michigan State University economics professor Mark Skidmore made an astounding discovery about the finances and budgets of the U.S. federal government earlier this year. He and a team of graduate students discovered $21 trillion missing in the federal budget going back to 1998. Dr. Skidmore, who specializes in public finance, explains, “We know from official government sources that indicate $21 trillion is, in some way, unaccounted for. Furthermore, if we come back to the Constitution, all spending needs to be authorized by Congress. It looks to me, and I think I can conclude with a high degree of certainty, there is money flowing in, as well as out, that is unaccounted for. . . . That’s the one thing we know from these documents, that there is $21 trillion in unaccounted funds.”
In one example, Skidmore found a huge transfer from the Treasury Department to the Army that, again, was not authorized. Keep in mind, the Army has an approved budget of a little more than $120 billion a year. Skidmore says, “In this one report . . . there is an appendix table that indicates there was a transfer from Treasury to the Army of about $800 billion. That’s almost a trillion dollars flowing in. There is a note that says we had to do this in order to reconcile past years. That doesn’t make sense to me either because, these earlier years, you have a transfer from the Treasury of your $120 billion or $130 billion, and every year, the Army is granted the authority to spend this money in the ways they say they will. How can you get (an additional) $800 billion in and call that an ‘adjustment’? I tried to call and talk to the office of the Inspector General to talk to the people who helped generate these reports. I haven’t been successful, and I stopped trying when they disabled the links.”
You heard correctly. The government cut off inspection of their own financial accounting to the public. Skidmore says, “I have been able to talk to a few people. I tried calling the Congressional Budget Office. I talked with somebody at the GAO, and one or two people at the Office of the Inspector General, who were generating these reports. . . .It’s a big question in why don’t people want to look at this? I am just a blue collar economist at Michigan State University, and I am saying this does not make sense to me. Why don’t we look at this? . . . Some high ranking government official authorized the disabling of all the links to the key documents. We know that.”
Dr. Skidmore thinks the federal accounting of $21 trillion in missing money is crazy and far outside the realm of normal. So, is this a legitimate U.S. national security issue? Dr. Skidmore says, “Yeah, and that is one of the reasons I decided to look at this. How can this be, and what does this mean? If trillions of dollars are flowing in and flowing out, it appears to be outside of our Constitution and outside of the rule of law. If that is the case, that really is troubling because it suggests that there is a layer of things happening that are outside the rule of law. I know, for example, that some activities, just for the sake of protection of the people involved in national security, have to be black budget. There is always stuff like that. Usually, it’s authorized spending, and some percentage is this black budget where only a small percentage of people and some in Congress know about it, but this is way outside of that. So, I am worried about it.”
Join Greg Hunter as he goes One-on-One with Professor Mark Skidmore of Michigan State University, as he talks about $21 trillion in missing money from the U.S. federal budget.
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Dr. Mark Skidmore – $21 Trillion Missing from US Federal Budget
After the Interview:
Dr. Skidmore says, “cgIf the American people don’t stand up and say this is unacceptable, nothing is going to happen. This is just wrong.”
To find out more about Dr. Mark Skidmore, click here. To look at the documents he used to uncover $21 trillion in missing federal money, go to Solari.com and search the term “Missing Money” or simply click here. Dr. Skidmore copied all the documents he used for research and put them on Solari.com with the permission of its founder Catherine Austin Fitts.
CATHERINE AUSTIN FITTS – THE MISSING TRILLIONS: A CONSTITUTIONAL CRISIS! DARK JOURNALIST
Related to the above:
$9,000,000,000,000 MISSING From The Federal Reserve SHOCKING FOOTAGE
23 Trillion Dollars Missing from DOD Day before 911 2001 Rumsfeld LIES
Eisenhower warns us of the military industrial complex.