The Biden Tax Plan

Progressive-Democratic Party Presidential candidate Joe Biden thinks American businesses don’t pay enough taxes into Government’s coffers.

“Vice President Biden has been clear that it’s absolutely unacceptable for some of the biggest companies in America, like Amazon, to pay next to nothing in taxes,” Michael Gwin, a campaign spokesman, said.

This is a carefully misleading claim that Biden is making through his spokesman. Some of the biggest companies in America actually pay billions of dollars in taxes for all that each of those companies pay a net amount of close to zero. That, though, is an outcome of our byzantine tax code that lets companies—big and small; although it’s the biggest that are able to make the most of it—balance a tax bite here with a subsidy, write-off, credit, or what-have-you there in order to achieve low/zero overall liability while paying those individual billions.

Progressive-Democrats and Economic Recovery

Progressive-Democrats don’t seem to care about economic recovery, only about using the current Wuhan Virus situation and the economic dislocation the virus has spurred for their own political power gain.

This is made plain by House Speaker Nancy Pelosi (D, CA) in an interview she gave to CBS NewsFace the Nation Sunday.

…what we will not support is the following. What they’re saying to essential workers, you have to go to work because you’re essential. We’ve place no responsibility on your employer to make that workplace safe and if you get sick, you have no recourse because we’ve given your employer protection.

Government and Student Debt

In an article on the possibility of the Federal government extending its current moratorium on student debt repayment, The Wall Street Journal posed a question to its readers.

How should Congress address the backlog of student-loan payments borrowers will owe after Sept 30?

I say, mostly by leaving it alone. The loans are strictly business arrangements between the borrower and the lender.

In a free market economy, government has no role here, other than to allow student debt to be discharged through bankruptcy like most other debt. Such bankruptcies then must flow with all the ramifications they entail for both the lenders and the borrowers.

Internet Security

There is a move afoot—and it’s making significant progress—to develop and deploy a quantum computing Internet.

A group led by the US Department of Energy and the University of Chicago plans to develop a nationwide quantum internet that could be functional in about a decade and with the potential to securely transmit sensitive information related to national security and financial services.
“What we’re moving forward on is building out quantum networks [to] someday…turn into a full second internet, a parallel internet to the digital internet,” said Paul Dabbar, the Energy Department’s Under Secretary for Science.

The Biden Fed

Progressive-Democratic Party Presidential candidate Joe Biden has a plan for the Federal Reserve system of banks. This bit jumped out at me in the article at the link that describes his plan.

[T]he policy blueprint Team Biden cooked up with Bernie Sanders’s economic advisers argues, “the Black unemployment rate is persistently higher than the national average, which is why Democrats support making racial equity part of the mandate of the Federal Reserve.”

Because blacks are fundamentally incapable of competing in America without special treatment. This is the soft bigotry of low expectations.

Opening Schools—Two Schools of Thought

California Governor Gavin Newsom (D) has ordered all schools—private and public—not to open until his Omnipotent State declares it safe to do so. This seems at the behest of California’s teachers unions, which fear competition from private schools—and which are losing that competition, as they’ve been doing for some years.

Catholic school tuition, for instance, costs $1,000-$4,000 per student less than the union public schools, and they provide better education—academic, discipline, moral values. And they’re ready, willing, and anxious to open on schedule.

Tax Misallocation

The misallocation, this time, is not in the way our tax monies are being spent.

It’s in what our money is not being spent on in lieu of paying those taxes in the first place.

According to a 2018 Bureau of Labor Statistics survey—before the 2017 tax reform bill had been able to percolate into our economy in any serious way—we Americans spent more on the taxes Government exacts from us than we did on food, clothing, and health care combined.

Byzantine Taxing

Many companies, sitting on billions of dollars of tax credits, want to be able to cash them in promptly.

For example:

Duke has been unable to use all the corporate-research and renewable-energy credits it accumulated because it has been using accelerated tax deductions for capital investments to lower its taxable income, said Dwight Jacobs, the company’s chief accounting officer. That bumped it up against tax-code rules that limit tax credits, leaving $1.8 billion in unused credits on Duke’s books. Under the proposal, the company could get that within months instead of years.
The proposal “would give us more cash today and that would cause us to avoid borrowing money that we would otherwise have to borrow,” said Mr Jacobs.

A Taxing Case

Apple won its appeal of a European Commission ruling that it owed €13 billion ($15 billion) in back taxes because Ireland had illegally subsidized the company.

The General Court agreed with Ireland’s argument that the matter wasn’t an illegal subsidy because the nation cut similar tax deals with all comers.

The EU, of course, is not happy. It’s Tax Justice Coordinator (no irony in that title), Tove Maria Ryding, said,

If we had a proper corporate tax system, we wouldn’t need long court cases to find out whether it is legal for multinational corporations to pay less than 1% in taxes.

Market Performance

Great Britain has decided to bar the People’s Republic of China’s telecom company, Huawei, from participating in the British build-out of their 5G network.

The PRC isn’t happy. Foreign Ministry Spokesperson Zhao Lijian:

Whether the UK will provide an open, fair and non-discriminatory environment for Chinese businesses offers a telling clue to how the post-Brexit British market will perform and how secure China’s investment will be in that country. So, we will be closely following the situation.

I certainly hope it’s a telling clue, given that PRC companies are extensions of that government’s intelligence gathering facility.