Thursday, May 3, 2018

Rising Tides

No this is not about global warming but about economics and the myth that rising tides lifts all boats.  What that neglects is that some of them float away, some smash against a pier and some end up okay so much for that analogy but it does apply to the current tax "win" that has since been the sole success of the Trump Monarchy.

What has resulted so far is that Apple is busy buying back stocks and Ford has cut any car manufacturing other than profitable gas guzzlers which should make the EPA maligned Secretary happy.  What 11 investigations not enough?

Then I guess that enabled Trump to repay the beleagured Michael Cohen the 130K he owed him.  So tax cuts work!

But what they do is enable businesses to play games and checkers with cities and states as Amazon is continuing to do with H2 while raising the price of Prime membership so your tax cut can go there so it's a win win!  And since Seattle is demanding that Amazon pay taxes expect that they will move to a more "business friendly" environment, maybe Boston, that is the safe word for "tax breaks." And the fact that while Boston is the White Trash version of Nashville they are better educated and in turn sit in the yard of the Harvard.  Think of Nashville and I think of Boston, largely white, racist, segregated and obsessed with class and money.  The book ends of these cities are perfect fits.

Then on the day following the massive epic transit fail in Nashville, the Temp, aka Mayor Briley who faces "re-election" starting this week stood next to a Money Management firm, AllianceBernstein,  announcing the relocation of their headquarters to Nashville.  What was left out was that the handlers or rich whisperers are staying in New York City and this is strictly operational with of course the CEO buying a fake mansion in the wealthy area and living here part time to shift his tax advantages to a no income tax state with low investment taxes that benefit him.  And we also do not know what corporate tax breaks the firm was given as an enticement in which to do so. There are always two hands in a handshake.    I suspect that is why Nashville was chosen after Charlotte, North Carolina a well known banking hub is because of some backroom deal.  This is the way things work as they did back in the good ole days.  Expect this will factor in the Amazon decision. 

Tennessee Hall Tax is going away. Governor Bill Haslam signed into law a bill that reduces the income tax rate from 6% to 5% for the tax year 2016 on returns due April, 2017.  The bill says it is the “Legislative Intent” that the tax be reduced by 1 percent annually starting in 2017.  This law will require new legislation each year.  The law eliminates the tax entirely in 2022 regardless of whether the annual reductions occur. The Hall tax was enacted in 1929 on tax dividends and certain interest income.  The first $1,250 in taxable dividend and interest earnings and the first $2,500 for all joint filing is tax-exempt.  Taxpayers 65 and older are exempt from the Hall tax if their total income from all sources is $68,000 or less for joint filing and $37,000or less for single filing.

I love that if you are senior making 37K to 68K you are exempt from a wealth tax.  Okay, take a minute to think this one through.   This is another example of the contradiction in terms infamous in the South as you would not have said investments.  Well unless you include the trailer you live in.

As for the locals the firm intends to hire perhaps they can come from Gibson Guitar which filed for bankruptcy this week after mishandling it and overwhelming it with debt much like Sears/KMart which is attempting still to Phoenix itself.

The rust belt is another example is how they can resuscitate a dying industry by transitioning into new industries.  There is not been just a transition to Mexico  but here in the South and true that the low wages and lack of union protection enabled this sea change to the South but in reality the lack of an educated and well trained work force affects retention and growth overall.  Hence wages remain stagnant, turnover high and we have this bizarre new reconstruction of the South that is a hot mess as is the case of Durham, North Carolina.   I believe it explains why the rural areas are in fact red and elect idiots like Marsha Blackburn, Diane Black and Mae Beavers.  They also elect their fare share of white men while the black population elect largely religious faces as they are the only ones willing to come forward and have the foot soldiers they need in which to do so,  Segregation in the South is alive and well but it is all about the color green.

So the South is rising again and with it their Confederate Statues can as well.  As we now know that many active military are alive and well and are White Supremacists so that will make the military takeover so much easier.  Rise up! 

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