Unleash Prosperity Hotline – Weekend Edition Issue #972
03/08/2024, 03/09/2024, 03/10/2024
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1) Well, There He Goes Again! Three Biden State of the Union Whoppers
A lot of tall tales and a few outright fabrications in the Biden speech last night - and far too many to enumerate here. But we will revisit three here.
“My administration cut the deficit by $1.7 trillion.”
This isn’t just a little bit false, it’s an extraordinary and audacious misstatement of fact. The baseline deficit over 10 years, as measured when Biden came into office versus the latest forecast, shows nearly $6 trillion added to the debt since Biden arrived on the scene.
So how does a $6 trillion addition of red ink possibly equate to a $1.7 trillion reduction in the deficit. Someone didn’t pass his basic math exam in high school.
“We will make the rich pay their fair share.”
The top 1% of American tax filers now pay an all-time record high 46% of taxes. This is according to Biden’s own IRS. Does he think the rich should pay ALL the taxes?
“I inherited an economy [from Trump] that was on the brink…”
Actually, the economy grew by – ready for this? 33% in the third quarter of 2020 and 4.1% in the 4th quarter of 2020. The economy was in a full-scale COVID recovery when Biden came into office.
2) Biden Promises To Grow the Economy With a Soak the Rich Tax Plan
There’s an old saying that Democrats love jobs but hate employers. That theme came shining through last night with Biden’s new tax assault against employers and “big business.”
The Biden plan is to:
Raise the corporate tax rate to 28%, higher than Communist China.
Impose a global corporate minimum tax of 21%.
Nearly double the capital gains tax
Quadruple the stock buyback tax (we told you it wouldn't stay at 1%) which will undermine returns for all investors.
Impose a new 25 percent tax on unrealized capital gains on "billionaires," defined as anyone with a wealth of $100 million, which by our math is less than a billion.
Biden's Budget Would Raise Income Tax Rates
These tax hikes would pay for a massive expansion of welfare spending in the tax code with advanceable "child credit" monthly checks for non-taxpayers, increase the earned income credit, and give a permanent extension of supersized Obamacare subsidies.
3) If the Economy Is So Good, Why Are Americans Underwater in Debt?
Here's a dubious Bidenomics milestone:
US households are now paying roughly as much interest on other kinds of debt, from credit cards to student loans, as they are on their mortgages, according to the latest numbers from the Bureau of Economic Analysis.
Non-mortgage interest payments climbed to an annual rate of $573.4 billion in January. That’s the highest on record even after adjusting for inflation — and within a hair’s breadth of the $578.3 billion in annual mortgage interest that households were shelling out as of the last quarter of 2023.
