You've by now surely heard the news this morning that Elizabeth Truss has canceled the key part of her tax cut, which would have chopped the UK's top tax rate from 45 to 40%. A small income tax cut for the middle class and some business tax relief remain. All of the crazy spending in the plan - such as energy subsidies also remain. The tax rate cut would have increased growth, investment, and production. It would have likely LOWERED inflation. The Reagan and Trump tax cuts reduced inflation. The IMF trashed the tax cut as did the Bank of England and the media as “tax cuts for the rich.”
But here is what is Mad Cow Disease crazy about these developments. The tax cut that was scuttled was expected to "cost" about $2 billion. This evidently caused the bond market to go into cardiac arrest and it’s cancellation caused joy in financial markets around the world.
But why?
Contrast this tiny tax cut with the $21 trillion spending spree across the globe since COVID. Or contrast that with the $4 trillion Biden has spent in 20 months.
The bond market is afraid of the mouse, not the elephant. Amazing. Madness. For more on this, we recommend a great column from Holman Jenkins of WSJ this weekend.
Trump did his best to “drain the swamp” in Washington - just as voters hoped for. Alas, he failed. Now the federal government is on an unprecedented hiring spree.
Somehow hiring thousands upon thousands of new federal employees are going to change the temperature of the planet, end racism, and make us all equal. This from E&E News:
“Federal agencies are posting “helped wanted” signs as the Biden administration tries to quickly hire thousands of people to implement the new climate law.”
“The Department of Energy will need hundreds of new employees, many in its loan office. Treasury Secretary Janet Yellen, meanwhile, says the IRS plans to hire 5,000 people. And EPA has to staff up the new national green bank….”
Don’t you just love the fact that bureaucrats at the EPA and the Department of Energy - most of whom have never worked for a private business - are going to run a multi-billion dollar bank, gambling with your money? This is like asking a 9-year to race in the Indy 500.
Oh and if you look closely at the photo above-showing workers entering the EPA - notice that this is from 2019. That’s because nobody’s been working at the EPA or Department of Energy since Covid hit. In most federal agencies they are still phoning it in while collecting full-time salaries.
When Republicans take back the House in January, job one is to take a chainsaw to programs like these.
Speaking of Bidenflation, thanks to mortgage rates soaring from 2.8% when Trump left office to 6.7% today purchasing a new home is a lot more expensive:
5) Biden White House Creates Advocate for Plants and Animals
Last week, just days after President Biden blamed Seven 11 owners and energy producers for high gas prices, the administration created a new top job at the State Department.
The technical title is Special Diplomat To Advocate For Global Biodiversity. The government is already chock full of agencies dealing with saving endangered species and the Amazon rainforest. Meanwhile, there is still no U.S. Ambassador to Brazil and Italy.
The new post will be filled by Monica Medina, who told the Washington Post that this job is “not just about nature for nature’s sake….the loss of biodiversity …is one of the biggest threats facing humanity.” Her goal is to conserve 30 percent of their land and water area. Down with development.
So how was Monica selected for this job? Guess what? She is the wife of White House Chief of Staff Ron Klain. It’s a family affair. Wouldn’t you just love to be a fly in the wall at the Klain dinner table? "How many jobs did you destroy today, honey?”
