
by James A. Bacon
Two items in the news today serve as a reminder of how the rules enacted by the American governing class benefit the rich, aid the poor, and tighten the screw on the middle class.
The new tax dodge. First, The Wall Street Journal describes the increasingly widespread tactic in which the super-wealthy borrow money at extremely low interest rates created by Federal Reserve Board monetary policy in order to avoid triggering the taxable event of cashing in capital gains. “You could buy a boat, you could go to Disney World, you could buy a company,” said one tax adviser. “The tax benefits are stunning.” The Journal describes the strategy as “Buy, Borrow, Die” — borrow money against stock holdings to pay for everything, and never pay income or capital-gains taxes. Ever.
The impact of super-low interest rates on the middle class is very different. The suckers and schmucks who pay taxes on their paychecks and manage to build a nest egg over a lifetime find themselves collecting near-zero interest on their bank CDs, money market funds, and treasury bills. While the super-wealthy borrow at near-zero rates to avoid taxes, middle-class Americans generate near-zero incomes on their savings — and get taxed on that miniscule income in the process! (more…)








by James C. Sherlock
by James C. Sherlock
While an EO does not have the force of law, the president as chief executive can set priorities. The executive departments will honor the EO where not barred by law. 



