Raise the Price

…of a product, and with that, lower demand for it.  This is the sort of thing taught in high school introductory economics courses.  One way to raise the price is to raise taxes related to it, and to reduce tax deductions related to it.

The Manhattan real estate market [a generally hgh-end market] stumbled in the third quarter of 2019, new reports show, as prices plunged and fewer buyers were willing to purchase higher-priced properties in the wake of two recent tax increases.
The median sales price for properties fell 17% from the same quarter last year…. The average sales price dropped 12%….
Condo sales fell 8%….

Wealth Taxes

Progressive-Democratic Party Presidential candidates and Senators Elizabeth Warren (D, MA) and Bernie Sanders (I, VT) have proposed taxes on the wealth of Americans—2% on individuals worth more than $50 million and 3% on billionaires in Warren’s case, and from 1% on married couples worth $32 million, rising to 8% on those with wealth over $10 billion in Sanders’.

These are direct taxes, which would make them unconstitutional.  Their unconstitutionality does not arise from their directness but from their lack of State proportionality.  Proportionality—apportionment in the Constitution’s terms—means that such taxes can only be assessed in accordance with a State’s population relative to the other States’ populations, just as Representation in the Federal government House of Representatives is.

A Price for Stability

Global tax reform is a path to a stable international economic regime??

[T]he potential global tax overhaul would force many companies to pay more to governments, not less. But this may be a small price to pay for a stable international framework.

After all,

Existing global tax rules allow companies to transfer those profits, often to a low-tax jurisdiction.

Never mind that an even smaller price—indeed, a net positive gain in prosperity—would be lowering national taxes to the level of the lowest rates imposed by any nation. This would eliminate tax competition, reduce compliance costs as multinational companies no longer had to maneuver the way they realize their incomes and taxes owed, lead to lower end-user prices by reducing taxes as a multinational’s cost center to be covered by the price of its goods.

One-Upping Elizabeth

Who can be more socialist than the other?  Progressive-Democratic Party Presidential candidate and Senator Bernie Sanders (I, VT) now has proposed

an annual wealth tax topping out at 8% for the richest Americans, offering the farthest-reaching Democratic plan to pay for expanded government programs and break up concentrated fortunes.

That’s much more than fellow Progressive-Democratic Party Presidential candidate and Senator Elizabeth Warren’s (D, MA) now paltry 2% wealth tax.

Medicare-for-All and Middle Class Taxes

Even Stephen Colbert wants to know: under Progressive-Democratic Party Presidential candidate and Senator Elizabeth Warren’s (D, MA) payment scheme for her Medicare-for-All scheme, will middle class Americans’ taxes go up? He put the question to her in so many words:

You keep being asked in the debates how are you going to pay for it, are you going to be raising the middle-class taxes…. How are you going to pay for it? Are you going to be raising the middle-class taxes?

Warren’s answer:

Another Reason

…not to live in New York.  Aside from there being no place for folks who disagree with the Progressive-Democrats in charge, there’s this travesty.

A New Jersey resident—resident in every sense of the term—owns a vacation home in New York where he spends a few days each year…vacationing.

A state administrative law judge ruled last month that [the resident] owed $527,000 in back New York state income tax because of his upstate home. With interest and penalties, that is more than twice the $290,000 he paid for the house in 2011.

That’s Not Your Money

Echoing Progressive-Democratic Party Presidential candidate and New York Mayor Bill de Blasio’s claim that there’s plenty of money, it’s just in the wrong hands, more Progressive-Democrat Presidential candidates are moving toward taxing the mere existence of that money.

For the richest Americans, Democrats want to shift toward taxing their wealth….

After all,

At the end of 2017, US households had $3.8 trillion in unrealized gains in stocks and investment funds, plus more in real estate, private businesses, and artwork[.]

Gimme that money, say the Progressive-Democrats. You didn’t earn that. And besides, whether you did or not is irrelevant. We have better uses because just shut up.

An Economic Misunderstanding

The Congressional Budget Office said Wednesday that the two-year budget deal will increase our annual deficits significantly over the next ten years.  That puts a premium on Republicans regaining the majority in the House, retaining/expanding its majority in the Senate, and retaining the White House, with an emphasis on Conservative Republicans in that mix.  That’s for another post, though.

What…triggered…me was this bit at the end of the article CBO Director Phillip Swagel:

The nation’s fiscal outlook is challenging. To put it on a sustainable course, lawmakers will have to make significant changes to tax and spending policies—making revenues larger than they would be under current law, reducing spending below projected accounts, or adopting some combination of those approaches.

A Brief Question

…briefly answered.  Greg Ip, in his column on a putative currency war inflicted on us by the EU asked it.  He opened his piece with this:

When Federal Reserve policy makers gather in Washington this week [a couple days ago] to weigh cutting interest rates, a big part of their decision will already have been made—in Frankfurt.

Then he asked

How should the US protect its economy against possible threats from European economies?

Tax and Spent Progressive-Democrats

In spades.  They’re in a race to bankrupt us.  Or, as The Wall Street Journal put it,

The Democratic presidential primary is turning into a bidding war.

Senator and Progressive-Democratic Party Presidential candidate Elizabeth Warren (D, MA) has broken out of the starting gate with an offer of forgiveness of $640 billion in student debt for our votes.

Senator and Progressive-Democratic Party Presidential candidate Bernie Sanders (I, VT), though, has caught her at the first turn: he’s offering $1.6 trillion (yes, that’s with a ‘t’) in canceled student debt plus tuition-free “public” colleges.