This post EXPOSED: the “Green” New Deal appeared first on Daily Reckoning.
We took command of The Daily Reckoning fully aware of the bodily risk, reduced here to words by our co-founder Bill Bonner:
In our trade as newsletter publishers, hardly a day passes without a good laugh. Our only occupational hazard is a rupture of the midriff.
Each day tosses up a fresh roster of fools, scoundrels, frauds, knaves, rogues, ne’er-do-wells, world improvers, lunatics and pitchmen.
Sometimes — though rarely — they combine in the form of a single person.
The trouble with them all is that they are vastly amusing. Hence the constant threat of an abdominal tear.
Sunday night the odds caught up with us… our belly was ripped from its moorings…
For there she was on 60 Minutes, the latest political sensation, Alexandria Ocasio-Cortez — AOC from here forward.
A former waitress, AOC was serving food 1.5 years ago. As the newly installed representative of New York’s 14th Congressional District, today she is serving notice…
Notice that a New Deal is in prospect — a “Green” New Deal…
That every American is to be guaranteed productive employment…
That Medicare for all will cure the nation’s ailments…
That free college is as elemental a right as life itself…
And that the ultra-rich will pay all the freight.
AOC’s solution is a 70% tax on all income exceeding $10 million per year.
“There’s an element where, yeah, people are going to have to start paying their fair share in taxes,” said she in the Queen’s English.
We have no objection to a man paying his fair share.
But what is fair? And who decides?
“Render unto Caesar what is Caesar’s,” said Jesus our Lord.
But He never specified precisely what was Caesar’s.
Was it 5%… 20%… 60%… 99%?
For the United States government, the answer was 7% when the income tax went upon the law books in 1913.
This was the top combined tax rate for those earning $500,000 or more.
Incidentally… $500,000 in 1913 dollars equals $12,729,191.92 in 2019 dollars.
But America is a much fairer society today.
It is such a shame the AOC plan will never make it ashore.
It is fatally holed below the waterline… like the Titanic by its iceberg.
Any third-rater can see there aren’t enough super-rich to fleece.
Our agents inform us some 16,000 Americans earn over $10 million per annum — at least as of 2016.
What is the tax haul once the 70% rate kicks in?
According to Mark Mazur, former Treasury Department official now laboring for the Tax Policy Center — some $72 billion annually when all factors are considered.
But how will a slight $72 billion bump substantially fund a Green New Deal… jobs for all… universal Medicare… free college tuition?
And that is assuming the rich sit still, waiting for the tax man to seize them by the collar.
But the rich are moving targets
They tuck into loopholes within the tax code. They dodge into overseas tax shelters. They hide under shell companies.
Who knows how much money the tax would haul aboard once the accountants are done with it?
And as anyone who has looked …read more
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