NYP Report Outlines Massive Legislative Gimmicks Being Deployed Within $7.5 Trillion Legislative Package in Biden’s Build Back Better Program


Posted originally on the conservative tree house on October 27, 2021 | Sundance | 103 Comments

The New York Post has an excellent expose’ [See Here] showcasing just how manipulative the legislative tricks are within the mega-trillion dollar human infrastructure and Build Back Better bill.

As anticipated by most political observers, the Democrats are using budgetary tricks to avoid the Congressional Budget Office putting a real price tag on their legislation.  The article is easy to understand even though the legislative tricks are far beyond anything any congress has ever attempted.

(New York Post) – After months of criticizing Sens. Joe Manchin and Kyrsten Sinema for balking at the original $3.5 trillion price tag, congressional Democrats are finally accepting reality and paring President Biden’s social welfare package to between $1.5 trillion and $2 trillion over the decade.

Does this mean they are responsibly removing the bill’s worst provisions and crafting fiscally sustainable legislation? Of course not!

Instead, welcome to the gimmick Olympics, where progressives are using classic accounting tricks to hide the true cost of the bill.

Instead of producing legislation that truly costs $2 trillion over the decade, lawmakers are crafting as much as $4 trillion worth of new initiatives, but simply using fake expiration dates to score only a few years of each proposal. The idea is to create new federal programs, hook the constituencies on new federal benefits, and then assume that future Congresses and presidents will not dare to allow them to expire. Those assumed extensions will then blow up the cost far above today’s $2 trillion sticker price.

For example, the March stimulus law temporarily expanded the child tax credit from $2,000 to $3,000 per child (and $3,600 for children under the age of 6), and expanded eligibility to higher incomes. Democrats have made clear that they want this policy made permanent at a cost of $1.3 trillion over the decade. Yet the initial reconciliation proposal expanded the policy for just four years, and now the White House is calling for just a one-year extension — effectively hiding nearly $1.2 trillion in upcoming costs. Congress already renews a small number of tax cuts each December, and the child credit will simply become another annual extender.

But the gimmick Olympics do not stop at the child credit. The White House has reportedly proposed three- to four-year expiration dates for other initiatives such as paid family leave, Medicaid expansion and new ObamaCare subsidies. A proposed new child care program — which a study by the left-wing People’s Policy Project shows could raise child care prices by $13,000 per year — would reportedly phase in slowly and expire after a few years. On the other side of the gimmick window, a new Medicare dental benefit would be delayed until 2028, and then have its costs jump once outside the 10-year scoring period.

Most cynical of all is the Democrats’ maneuver on the $10,000 cap on the state and local tax (SALT) deduction. The $10,000 cap is set to expire at the end of 2025, but House Democrats want to eliminate it immediately. So to “pay for” that immediate $90 billion-per-year tax cut, Democrats would actually impose a new SALT cap beginning in 2026 — count that future revenue as an offset — and then quickly cancel the tax before it ever goes into effect. In other words, they are creating entirely fake future policies in order to count the fake savings today. (read more)

Beware The Government That Wants to Tax “Unrealized Capital Gains”


Posted originally on the conservative tree house on October 27, 2021 | Sundance | 201 Comments

Taxing “unrealized capital gains” sounds like a catchy and obscure way to make wealthy people pay more in taxes, but it doesn’t work.  A government that moves in this direction ignores the reality that people are not static.  The process also involves “taxing wealth” which then becomes an arbitrary definition.

Unrealized capital gains are not income, they are simply increases in value.

If your home was worth $200,000 last year and $300,000 this year, you have an unrealized capital gain of $100k.   A 15% tax bill on that value increase means the homeowner would have to pay $15,000 to the IRS.

Joe Biden is proposing to pay for his multi-trillion expansion in debt through this type of tax upon billionaires.   Treasury Secretary Janet Yellen admitted this was part of their thinking to help pay for the Biden budget last Sunday.  WATCH:

Proposing a tax on money that does not exist is the peak of government.   Sure the proposal applies only to billionaires who have massive gains in their stock portfolios, but billionaires are not esoteric titles.  Billionaires are people who can, if needed, move their physical location and avoid any U.S. tax on their wealth.

This is the same reason why corporations move the location of their home offices to countries with lower tax rates, a process called corporate inversion.

If Elon Musk, Warren Buffet or any other multi-billionaire wanted to avoid U.S. taxes on their personal wealth they can (relatively easily) change their official residence to Mexico or any other nation where the value of their yet unrealized wealth would not be taxed.  That individual inversion process is an easily predictable unintended consequence.

As noted in The Hill:

[…]  Biden is suggesting that he will pay for the new spending by taxing people not on what they have earned but what they could earn from selling assets. Most people have assets that increase in value over time. Consider a family home. Over the course of many years, it can easily double in value, but you do not “realize” that money unless you sell it. Biden is suggesting that the government should start taxing you based on any increased value of the things you own, even though you have not actually made that money. It doesn’t matter that the home or stock or art could ultimately go down in value after you are taxed on the higher value. Indeed, if you tax some unrealized gains, you could in extreme cases force people to sell assets like a home to pay the tax on income that they did not make.

The administration has started where few would object: billionaires.  (read more)

Additionally, another issue arises if the previously taxed asset goes down in value; an issue where the depreciation or loss becomes a negative tax liability.  Meaning if you already paid taxes on an increase in value for an asset, and the following year that asset drops in value, the federal government would then owe you money to recompensate you for a realized loss.  If you paid $15k on a $100k increase in the value of an asset, and the following year that asset drops in value by $100k, the $15k you paid would be deducted from the current year tax liability.

There are constitutional issues with the federal government taxing wealth or assets; however, the overarching premise behind every proposal is that all wealth belongs to the government.  You hear this ideological perspective when people say “tax expenditures” or spending in the tax code.  The idea is that your income is what the government permits you to keep, NOT what your labor has achieved.

The ideology behind taxing “unrealized capital gains” is the same ideology in the premise of “sharing the wealth.”    It is an ideology that stems from a belief that your dollar earned comes at the cost of my dollar not achieved.

Beware the voices who would advocate for taxing unrealized gains in wealth as a source of government revenue.  Once you start down the path of taxing wealth you set up a process where the U.S. government controls the limits of where that wealth is defined.   It will never stop at billionaires….

Recap of Attorney General Questions During Senate Hearing From Senators Cruz, Grassley, Hawley, Lee, Cornyn


Posted originally on the conservative tree house on October 27, 2021 | Sundance | 320 Comments

Attorney General Merrick Garland appears before the Senate Judiciary Committee to answer questions about his involvement in the drafting of a DOJ memo to the FBI requesting support for investigations of parents who attend school board meetings across the country.

While the topic is downplayed by U.S. corporate media, the specifics of the issue are pertinent in that they highlight the politicization of the Justice Department by DOJ officials throughout main justice and the various offices of U.S. attorneys.

Garland was prompted to write his instructions as an outcome of the White House coordinating with leftist political operatives within the education system, specifically the National School Board Association.

It seems apparent, from the questioning and responses today, that Deputy Attorney General Lisa Monaco was the central DOJ official who coordinated the political intent of the memo.  Monaco was previously President Obama’s homeland security advisor and lawyer in the White House.  Within the main justice structure, Lisa Monaco is now the head of the DOJ National Security Division, the agency given the prosecutorial power within the Garland memo.

The background of the memo involved parents becoming aware of Critical Race Theory (CRT), essentially Marxist lesson plans within various regional school boards.  The parents responded to the information by confronting school boards across the nation.  The left-wing political operatives were caught off guard by the massive assembly and grassroots organization of parents in almost all states.

The CRT and education issue galvanized across party boundaries as Republican, Independent and Democrat voters -who are also parents- united in a common cause against the Marxist indoctrination material that is akin to the same playbook that triggered the Chinese Cultural Revolution.

Quickly awakened parents and concerned citizens were confronting the issue, and their commonality became a political risk to Democrats.  This triggered contacts from various left-wing organizations to the White House.

The Joe Biden White House -filled with Obama ideologues- responded to the threat of intense political damage, by organizing pushback against parent groups through the various educational organizations, teachers unions and community activists.  Their assembled strategy resulted in the letter from the National School Board Association, to the DOJ into the awaiting hands of DAG Lisa Monaco.

Monaco, having previously seeded the discussion within Main Justice about the political threat, then organized and helped draft the memo quickly signed by AG Merrick Garland.  The NSBA letter arrived on Friday, and the AG memo instructing the FBI to target parents was signed the following Monday.  Everything in the background of the issue highlights how the political needs of the White House become the focus of activity by the U.S. Justice Department.

In essence, the Merrick Garland memo highlights how the DOJ is weaponized against the political opposition of the White House; this is the larger issue.

Given the recent examples of the DOJ being weaponized against their political opposition, the Garland memo is seemingly just another data point in an endless assembly of data-points that prove just how corrupt the U.S. system of justice has become.  However, just because corruption is rampant and transparently obvious does not mean we should allow ourselves to become numb with anticipation of that corruption.

Action to address that corruption starts at the local level with a committed and engaged citizenry who actively address and hold accountable their local school board members and educational officials.

The intent of the Garland memo was to frighten parents away from the corruptions within the education system with the threat of the FBI investigating them.   If you allow your behavior and expectations to change based on fear, those who count on fear to manipulate the outcome will win.

Many people view these confrontations by Senators as nothing more than public displays that amount to no accountability.  In part, that is correct; however, it is not the responsibility of a senator, any senator, to confront the school board member where the origin of accountability needs to reside.

The role of a U.S. Senator is to hold the federal arm of the DOJ accountable and put them on notice.  This is what they are doing.  The role of the engaged citizen is to address the educational manipulation on a local level.  You cannot abdicate your responsibility to confront corrupt activity in your neighborhood to Washington DC.  It is the role and responsibility of the parent/citizen to deal with that corruption.

Snarking at Senators for confrontational hearings might feel like a good way to deflect our responsibility.  However, all it does is erode the foundational principle behind our constitutional republic which is built upon individual rights and responsibilities that start at the local level.   Those who believe the federal government should address local school board issues, are, by nature of their argument, asking for a larger system of centralized government.

Ted Cruz:

Josh Hawley:

Mike Lee

John Cornyn:

Chuck Grassley:

Posted in 1st AmendmentBig GovernmentBig Stupid GovernmentCold AngerDeep StateDept Of Justice

Senator Tom Cotton Confronts Attorney General Merrick Garland Over Using The National Security Division of DOJ to Investigate Parents Attending School Board Meetings


Posted originally on the conservative tree house October 27, 2021 | Sundance | 288 Comments

One of the lesser highlighted aspects to Attorney General Merrick Garland using the FBI to investigate parents as domestic extremists when they attend school board meetings, is that Garland put the prosecutorial process in the DOJ- National Security Division (DOJ-NSD).

From the perspective of the general public, the DOJ-NSD has become a well known division within the DOJ in the past several years, because it was within this division where the lawfare alliance constructed their political targeting operations against candidate Donald Trump.  The DOJ-NSD is where the secretive title-1 FISA applications are created and submitted to the FISA court.

As established by AG Eric Holder and DAG Sally Yates, the DOJ office of inspector general, the internal self-checking mechanism to act an a watchdog, was also blocked from having oversight into the DOJ-NSD throughout the era of Barack Obama.  This lack of oversight was intentional to keep the DOJ-NSD political operations hidden from any review.

The DOJ-NSD was the home for John Carlin, Mary McCord, Andrew Weissmann and Bruce Ohr among others who conducted the investigation into Hillary Clinton’s classified email use and later into candidate Donald Trump via the FBI Crossfire Hurricane operation.  It is the DOJ National Security Division that selects targets for prosecution (ex. FARA) based on political affiliation.   In this round of questioning by Tom Cotton, the Arkansas senator focused on the use of the DOJ-NSD by Merrick Garland.  WATCH:

Tom MacDonald – “Brainwashed”


A Fauci Funded Experiment Tormented Dogs as Insects Ate Them Alive


Armstrong Economics Blog/Disease Re-Posted Oct 27, 2021 by Martin Armstrong

Whether you’re Republican, Democrat, Independent, Libertarian, or even an Anarchist there is a general consensus that taxpayer funds should not go toward TORMENTING ANIMALS. Under Dr. Anthony Fauci, the National Institutes of Health (NIH) funded “research” that involved caging innocent beagle puppies while sandflies ate them alive.

The White Coat Waste Project, a non-profit watchdog, has been examining Fauci’s funding of the Wuhan lab. The more they dig, the more dirt they find. “Our investigators show that Fauci’s NIH division shipped part of a $375,800 grant to a lab in Tunisia to drug beagles and lock their heads in mesh cages filled with hungry sandflies so that the insects could eat them alive,” White Coat Waste Project stated. “They also locked beagles alone in cages in the desert overnight for nine consecutive nights to use them as bait to attract infectious sand flies.” Around 44 dogs were subjected to this painful death under the pretense of it being an “experiment.” The cowardly “scientists” removed the dogs’ vocal cords to avoid hearing the pain they experienced while being tortured to death.

The Food and Drug Administration (FDA) does not require testing on dogs to approve a drug. There was no reason for this deplorable experiment or the lengths they took to ensure those dogs suffered. Rep. Nancy Mace (R-S.C.) called Fauci’s actions a “reprehensible misuse of taxpayer funds,” and is demanding answers. In fact, 24 bipartisan lawmakers are now actively pursuing a closer investigation to see why Fauci allowed such cruelty to occur on our dime.

No one seemed to care about Fauci funding Gain of Function research at the Wuhan lab (besides Rand Paul). This man is touted as our savior when he is potentially one of the masterminds behind the entire coronavirus crisis. The hashtag #FireFauci has been trending on Twitter and people are beginning to wake up to what’s going on behind the curtain as Fauci is only a piece of a larger puzzle. This will likely not be the last secret that is revealed from Fauci’s dark past. What other “experiments” does he have up his sleeve? This man is a complete menace to society and deserves to be fired and criminally prosecuted for each and every one of his crimes.

Political Cartoonist Fired in Australia For Showing Truth


Armstrong Blog/Tyranny Re-Posted Oct 27, 2021 by Martin Armstrong

Michael Leunig was sacked by the Australian newspaper “The Age.” Vaccines mandated by government have never taken place in history. How dare someone call into question such dictates of governments. Then to have the audacity to equate such tactics to the practices of Communist governments where liberty was never even a privilege, no less a right. In Australia, they are already hinting that you will need continued boosters to retain any rights whatsoever. The press has crossed over to the other side. They now stand against the people and are merely transforming into propaganda organizations as they were under communism.

Here we have Hillary telling BBC that Britain should fire anyone who refuses to take a vaccine, even for religious reasons, now that it has been leaked that these vaccines were made from aborted fetuses. Those in government are out to control people because socialism is collapsing. They are moving to a new authoritarian form of government where they intend to terminate democracy as they have done in Europe. The people never get to vote for the head of Europe nor for the European Commission that makes the laws. Nobody in real power in Europe ever stands for election. They are bringing this system worldwide. The NEW NORM is you have no rights anymore — everything is simply a privilege that they can withdraw as they please.

These same tactics in Russia led to civil war. Will that appear in the West 2022/2023?

Demonizing Your Opponent


Armstrong Economics Blog/Politically Correct Re-Posted Oct 27, 2021 by Martin Armstrong

COMMENT: Hi Mr. Armstrong,
Your ‘great divide’ post just reminded of a story from when Trump was running for office. I work in a hospital. I went to see a patient to give them a medication. I said, ‘I came to see if you wanted XYZ.’ The patient said, ‘Do I have a choice?’. I said, ‘Of course you have a choice, this is America.’ And the patient said, ‘Oh you must be a Trump supporter.’
That is the moment I knew Trump was going to win. I feel like your story has a similar feel to it.

JM

REPLY: Yes it does. Neither politics nor vaccines came into the discussion. It was a bizarre moment setting off alarm bells in my soul that this polarization is very serious. The country has become so split and just resisting tyranny is now somehow you are a problem. During the French Revolution, they confiscated not just the property of the king and the aristocrats, but also the church. Assignats were paper money issued by the Constituent Assembly in France from 1789 to 1796. They were backed by the value of properties seized from the crown taken over on October 7th, 1789, and those of the Catholic Church, which were also confiscated on November 2nd, 1789.

During the American Revolution, some places confiscated the property of those who opposed the Revolution. Georgia even bragged that their currency was backed by confiscating the assets of those who disagreed with the revolution. They are trying so hard to demonize all resistance and they are using the vaccines to do so while subjecting people to risks. Every vaccine poses risks to some people. It is against human rights to force any medical procedure on people. That was established following the Nazis. This tyranny which pretends to be concerned with people’s lives so it is proper to protect them by stripping them of all rights and independence will blow up in the face by 2026/2027.

Three in Ten Workers Would Quit Before Receiving the Jab


Armstrong Economics Blog/North America Re-Posted Oct 27, 2021 by Martin Armstrong

Denver International Airport, the fifth-busiest airport in the USA, held a job fair this past weekend with an expectation of 5,000 visitors. Only 100 people showed up. It is understandable why people are hesitant to work in a notoriously regulated environment where they will likely be forced to wear a mask all day in addition to the vaccine.

The latest poll from KFF COVID-19 Vaccine Monitor shows that 87% of unvaccinated workers oppose employer vaccine mandates. When asked if they would get the jab, 50% said that they were “not at all likely” to get vaccinated. If mandatory weekly testing was required as an alternative to the vaccine, which is an option under Biden’s regime, 30% said that they would simply quit their jobs.

The US Chamber of Commerce has even asked the Biden Administration to delay the vaccine mandate until after the holiday season to avoid losing workers. The National Retail Federation has asked the White House to delay the mandate by at least 90 days too. Analysts are already predicting that workers will leave in droves once the mandate goes into effect. Although weekly testing remains an option, that will take time and money. The Retail Industry Leaders Association believes that workers should pay for their own weekly tests, which should go over well with the estimated 4 million unvaccinated retail workers.

As Powell stated last week, inflation will not subside until we reach maximum employment. Restaurants, retailers, and other businesses are beginning to close or condense hours. Even with wage increases, people are not returning to work, and it is time for the current administration to understand why.

The Cycle of Everything


Armstrong Economics Blog/Understanding Cycles Re-Posted Oct 26, 2021 by Martin Armstrong

QUESTION: Do you think only the left is evil?

FG

ANSWER: Of course not. If you understand cycles, markets go up, and then they go down. It is NEVER a one-way street. Politics is the same. Sometimes the Democrats are in power, and then it flips to Republicans (Conservative v Labour). If you go to the extreme far-right, you end up at the same place as the extreme far left; the only difference is their reasoning. Both will oppose their opponents.

This is what cycles are about. I would no more support the extreme right as I would the extreme left. Civilization works ONLY when LIBERTY prevails. Once one side demands their opponent must conform to their ideas, the very purpose of civilization no longer exists. If we are not respectful of one another’s rights, then we must also surrender all our rights.

If you understand cycles, we buy in bull markets and sell in bear markets. You will lose everything if you take only one side and ignore the trends. Politics is the same. During the 19th century, the Democrats were the slave owners. Agendas and principles always change with the cycles.