Jim Garrity, House Ways Means Committee, China discussed on The Editors
Please consider giving us a glowing review on itunes. If you don't like what you ear here please forget. I said anything. So jim garrity. The house ways means committee released their version of the tax increases. That are supposed to pay for or at least partially offset. Joe biden's massive spending plans. We got an increase the individual tax rate. Backup the thirty nine point six percent. They wanna take the corporate rate to twenty six point. Five from i think twenty one and increase the cap gains rate and then a bunch of other dogs breakfast. Various other revenue raisers. Would he make a bit rich. I have a challenge for our listeners. On this week's podcast. I think i'd like everyone to go to the local supermarket. And after you'd under grocery shopping a separate trip just go and see people is coming out and ask them. Hey groceries there. do you pay more for that. Gross those groceries this week and you did say six months ago or year ago or two years ago and my guest is a whole bunch of people will say yes and make cases. They'll say paying a lot more. I'm paying one hundred bucks more a week or something. People really feel this and say. Don't worry the government's gonna raise taxes. See how they react. See if that makes them feel better see if it makes them feel reassured. See if that makes them feel good about this. I think someone could argue. This is the very predictable consequence of electing a democratic president and a marginally democratic senate and a democratic house of representatives. Think one the other things that is striking you the most at this moment. And you can see this in the or you can hear this tone of voice week by week of this. Podcast about are terrible situation in afghanistan. Talk about more about that later. We have Mentioned the you know. A lot of people feeling inflation. I know which folks say. no no. it's not really long term inflation. It's not a real worry This is mostly supply chain issues. They keep having ports in china that is totally controlling corona virus that the keeps shutting down the ports. Everybody keeps trying to parallel park. Oil tankers in the suez canal for some reason. Don't worry this is all supply chain issue. It'll work itself out. It's not really bad inflation. But i could feel it. Ask people people talking about it and casual conversations and not necessarily bringing it up because they want to talk about politics. We still have the situation on the border. That hasn't been fixed. We have roughly a million people come across the border. You caught attempting to come across the border in. We have real problems as a country. We have real pressing. Oh by the way the virus that president biden said he was gonna shut. Down has not been shut down. What is the what is it. What are democrats in congress want to do. What does this mystery show. They really wanna spend a lot of money. That is their purpose in life. That is their their. Mo this highest priority. This is the holy grail. This is what they want to do with their lives. Get the federal government that or he spends an enormous amount of money to spend even more money. This is this old. They yearn for out of life and in the end. We are terribly terribly misserved by our leaders who basically spending more as the measurement of their success in government suggests you mentioned mentioned china supposedly having the virus under control. So do you assume they're totally lying. Because it's just. It's just bizarre that you know here. We are eighteen months into this thing still struggling with it. We're highly advanced society with the an incredible credible medical system. We got the effective vaccines earlier than anyone else. And we're still struggling with it. Once supposedly china basically has no cases at all. Yeah i can tell you with one. Hundred percents certainty. The official statistics are wrong. I can't tell you with any certainty. How wrong they are. But if you look at their official numbers for the first couple of months. Basically kirk goes up like occurred. Kinda like you'd expect levels off a little bit than someone pointed out that they The numbers just seem unbelievably an implausibly. Low then rich one day. The number of cases jumped by fifty percent exactly fifty percent. It's kind of amazing. Just yards a phenomenal coincidence. That the and then since then it has been an exactly horizontal very few cases. Very few deaths. I think they've they claim they've had four cove. Nineteen deaths in the last eight or nine months or something like that. So i think it's extremely likely they have cases and the international media's ability to cover what is going on in china has gotten tougher over the past year as china has expelled use journalists. I don't think they are in a situation. Like india was or like brazil a couple months ago but yet they've got more cases and deaths in there and just not saying because it's too important to their self image To be honest about this they have to weather. Because in there to believe that you'd have to believe that delta was just cutting through india like it's the rebirth and yet did not touch china in any way shape or form. Yeah suzanne back on the taxes so the overall price tag for the house. Version of tax increases is two point two trillion which is a huge over ten years which is a huge tax increase. But it's a step down from what biden wanted. The biden wants a corporate tax at a twenty eight percent. As i mentioned. This is twenty six point. Five biden wants the capital gains rate at thirty nine percent the six significantly lower than that he wanted to hit people passing on their wealth to their errors and a and a huge way that that house declined to do. But it just shows that biden campaigned is on this old school pragmatist and moderate. And here he is. He's more radical than the house of representatives. Nancy plc's tax writing committee. I think for whatever reason we've really witnessed over the last couple years Joe biden's campaign and then his presidency. It's become evidence that he's a lot more afraid of the left. The far left side of his party than he is of moderate. And maybe that's the right tactic if you're him there obviously a lot more vicious. Maybe there won't be any repercussions from moderate voters. Democrats who aren't quite as far left On taxes and spending as he is an sm of the progressive in his party are But to my mind. I don't think that biden has particularly strong priorities on anything. I think he's really just a vessel of whatever he thinks the loudest faction of his party is going to demand right now at night. I wouldn't be surprised if the plan they put out was a lot higher than anything they thought they could get solely because they wanted to be able to point to it and say look. We're progressive. I the president's in line the white house in line with everything that You know The left star left members party and we want to do all the spending knowing that they were never going to get it knowing that even the majority of democrats in the house never went to start out that high knowing that nothing like that most likely is going to get through the senate with a few moderates in the middle. They're saying they want lower spending than what the far left democrats want up abiding can point to it and say well we tried. Look this is what i wanted. And i'm compromising unity so we'll just go down to whatever whatever the most democrats agree to you and try to push that through But i think is just more evidence that he sees the party going too far left direction and he doesn't want to be left behind so try to make a big deal of supposedly holding people making under four hundred thousand dollars harmless but the corporate taxes and they love raising corporate taxes. Obviously i think the politics is good. And unfortunately they're right are passed along to consumers and employees and at the end of the day have a a reduce tamp down wages and they they would take if find got his number twenty eight percent and you add on the various state corporate taxes. We will be back where we were. Prior to the trump perform with the highest corporate tax rate in the world just which makes no sense at any level. Why would we want that. Why do we need that. While i will make our country less competitive and at least at the margins make it more alluring for companies to headquarters their operations overseas in a better tax environment. I find a whole thing. Baffling i have a philosophical objection to high taxes partly because i have an philosophical objection to high-spending and to.