US Economy thread

[MU82]

I'm pretty confident little or none of that will ever become reality.

But on the teeny tiny chance that it does ... some of the healthiest U.S. economies in the last 100 years have been during times of high tax rates, especially on the richest Americans.

[lawdog77]

This isn't the whole story. The plan is to raise the top cap gains ordinary rate to 39.6% (from 20%)

Then there's a proposed 44.6% rate that would apply to people that have income over $1,000,000/year. To earn over $1,000,000/year in capital gains, and to have a sustainable drawdown plan, you'd need to have ~$25,000,000 in investment holdings. Nobody on scoop has $25MM in assets or over $1,000,000 in income, so I think we're safe.

Source, if you'd like to read more - https://www.kiplinger.com/taxes/biden-calls-for-doubling-capital-gains-tax-rate

I have 50,000,000 shares of muscoop stock. How much do I have to pay if I sell?

[Hards Alumni]

I have 50,000,000 shares of muscoop stock. How much do I have to pay if I sell?

Well, it's worthless, so nothing.

[The Hippie Satan of Hyperbole]

I have 50,000,000 shares of muscoop stock. How much do I have to pay if I sell?

($5,000)

[Uncle Rico]

I have 50,000,000 shares of muscoop stock. How much do I have to pay if I sell?

Please pass along your SSN, mother’s maiden name and address and I’ll see you get paid.

[tower912]

I was unaware you were a Nigerian prince.

[rocket surgeon]

This isn't the whole story. The plan is to raise the top cap gains ordinary rate to 39.6% (from 20%)

Then there's a proposed 44.6% rate that would apply to people that have income over $1,000,000/year. To earn over $1,000,000/year in capital gains, and to have a sustainable drawdown plan, you'd need to have ~$25,000,000 in investment holdings. Nobody on scoop has $25MM in assets or over $1,000,000 in income, so I think we're safe.

Source, if you'd like to read more - https://www.kiplinger.com/taxes/biden-calls-for-doubling-capital-gains-tax-rate

All good info skat but just because it doesn’t affect you or I directly, it does indirectly whether you want to believe or not. You know, the knee bone is connected to the….

[Uncle Rico]

I was unaware you were a Nigerian prince.

If you pass that information along, I will send you an autographed Bible

[tower912]

I only want the one with the bonus features.

[Uncle Rico]

I only want the one with the bonus features.

In my Bible, Jesus shoots up the Romans and nails some pornstars.  It’s pretty awesome

[Hards Alumni]

All good info skat but just because it doesn’t affect you or I directly, it does indirectly whether you want to believe or not. You know, the knee bone is connected to the….

He said between slurps of the ultra rich, something he will never be

[tower912]

In my Bible, Jesus shoots up the Romans and nails some pornstars.  It’s pretty awesome

Apparently, I, too, need to get out more.   

[TSmith34, Inc.]

I have 50,000,000 shares of muscoop stock. How much do I have to pay if I sell?

I'll trade you for my Trump Bucks

[MU82]

In my Bible, Jesus shoots up the Romans and nails some pornstars.  It’s pretty awesome

In Kristi Noem’s version, Jesus shoots his 14-month-old puppy and brags about it.

[Skatastrophy]

All good info skat but just because it doesn’t affect you or I directly, it does indirectly whether you want to believe or not. You know, the knee bone is connected to the….

Ok

[rocket surgeon]

In Kristi Noem’s version, Jesus shoots his 14-month-old puppy and brags about it.

  corn pops version says he utilizes his water walking skills to save lives as as a pool lifeguard, finishes first in his law school class, beds numerous women not including all those he's pre-sniffed and showers with his daughter seemingly ok back in "the day"

  oh, and drove an 18-wheeler all the way to India for their world renowned ice cream

[Uncle Rico]

  corn pops version says he utilizes his water walking skills to save lives as as a pool lifeguard, finishes first in his law school class, beds numerous women not including all those he's pre-sniffed and showers with his daughter seemingly ok back in "the day"

  oh, and drove an 18-wheeler all the way to India for their world renowned ice cream

7 out of 10

[MU82]

From the Wall Street Journal:

Donald Trump’s allies are drawing up plans that would attempt to erode the Fed’s independence, if the former president wins a second term.

Some advisers argue that he should be consulted on interest-rate decisions, and a secret draft document recommends subjecting Fed regulations to White House review and more forcefully using the Treasury Department as a check on the central bank, according to people familiar with the matter. They also say some contend that Trump would have the authority to oust Jerome Powell as Fed chair before his four-year term ends in 2026, though Powell would likely remain on the central bank’s board of governors. It couldn’t be determined whether Trump is aware of or signed off on the effort, but some people close to the discussions believe he gave it his blessing. The Fed has enjoyed considerable operational autonomy in setting interest rates since the Truman administration.

[dgies9156]

From the Wall Street Journal:

Donald Trump’s allies are drawing up plans that would attempt to erode the Fed’s independence, if the former president wins a second term.

Some advisers argue that he should be consulted on interest-rate decisions, and a secret draft document recommends subjecting Fed regulations to White House review and more forcefully using the Treasury Department as a check on the central bank, according to people familiar with the matter. They also say some contend that Trump would have the authority to oust Jerome Powell as Fed chair before his four-year term ends in 2026, though Powell would likely remain on the central bank’s board of governors. It couldn’t be determined whether Trump is aware of or signed off on the effort, but some people close to the discussions believe he gave it his blessing. The Fed has enjoyed considerable operational autonomy in setting interest rates since the Truman administration.

Without a doubt, one of the dumbest things a politician could try to do. Very Jacksonian in his views, much like views on the Second National Bank of the United States.

I get that Presidents need to curry favor with the Chairman of the Fed. Bill Clinton was a master at smoozing Alan Greenspan. That was a major part of President Clinton's economic success. But there's a huge difference between who you appoint to the Fed, how you manage the Fed and effectively taking control of the U.S. Monetary supply to accomplish partisan aims. The latter would be a killer.

If President Biden had control of the money supply, interest rates between now and November would drop 500 basis points. The housing market would explode and MMT would be the order of the day. It would also scare the hell out of more than a few economists.

I get the overall concern. The Depression of the late 1920s and early 1930s was exacerbated and extended by the Federal Reserve's extraordinarily tight monetary policy. The New Deal was a direct response by President Roosevelt of the Fed's inability to act. We've learned a lot since then about how the economy works and giving politicians direct control of the Fed and the money supply, we've learned, is an incredibly BAD idea!!

[MU82]

From Seeking Alpha:

U.S. Private Sector Employment rose 192K in April, exceeding the +175K expected and easing from the +208K jobs added in March (revised from 184K), according to the ADP National Employment Report.

Annual pay increased 5.0% Y/Y, roughly stable with March's 5.1% pace. For job changers, annual pay rose 9.3% Y/Y vs. 10.1% in March.

"Hiring was broad-based in April," said Nela Richardson, chief economist, ADP. "Only the information sector — telecommunications, media, and information technology — showed weakness, posting job losses and the smallest pace of pay gains since August 2021."