Tag: taxes

Tax Cuts Without Spending Cuts Won’t Reduce the Taxpayers’ Burden

As this election cycle has demonstrated yet again, Democrats are not shy about calling for tax increases. In every election cycle they call for more taxes, whether through corporate taxes or through taxes on unrealized capital gains.

Donald Trump, meanwhile, has pledged to cut some taxes. I say “some” because Trump has also pledged to raise taxes on imports.

Nonetheless, Trump ran on the idea that he would reduce the tax burden on Americans if elected.

Unfortunately, Trump has no plans to cut government spending, and this means there is little chance that ordinary taxpayers are going to experience any real tax relief.

This is because tax cuts without spending cuts don’t actually lessen the cost of government. A tax cut without a spending cut simply moves around the tax burden, and often replaces explicit taxation with the stealth tax of price inflation.

Unless accompanied by spending cuts, a tax cut simply increases deficit spending, and taxpayers will pay for deficits one way or another. Typically deficits are paid for using one or more of the following: future taxes, present interest payments, and monetary inflation. Unfortunately for the taxpayers, when it comes to paying off deficit spending, “the future” is already here. In the 2024 fiscal year, the taxpayers had to pay nearly $900 billion in interest on the debt. That huge tax bill exists because federal politicians in the past spent more than they had in revenues.

Forcing the taxpayers to pay off old debts isn’t exactly popular, however. So, federal technocrats have found a way to push down interest rates on government debt. This reduces the amount of interest owed and nominally reduces the cost of government debt.

But this also ends up costing the taxpayers bigtime because the way that technocrats suppress the cost of interest is by having the central bank buy up more federal debt. (By buying government debt, the central bank artificially drives up demand, so the Treasury doesn’t have to pay as much in interest to attract buyers.) And where does the central bank get the money to buy up government debt? It prints the money. That then leads to both monetary inflation and (eventually) price inflation.

So, tax cuts that increase deficits only end up placing new and different burdens on the taxpayers. They’re not a real tax cut at all.

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NYC Ends Controversial Taxpayers-Funded Prepaid Debit Card Program for Illegal Immigrants

Mayor Eric Adams has announced the end of a controversial taxpayer-funded initiative distributing pre-paid debit cards to illegal immigrants.

The program, which was initially launched as a pilot earlier this year with a $53 million budget aimed to assist around 3,000 illegal immigrants and was set to expand its reach to over 7,300 individuals within the next half-year, will not see its contract renewed after January 2025.

The debit card initiative was designed to enable illegal immigrant families, temporarily housed in upscale hotels like the Roosevelt Hotel, to buy their “groceries and baby supplies” instead of receiving predetermined food services.

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Trump Has Sweeping Plans For His 2nd Administration: Here’s What He Has Proposed

Projected President-elect Donald Trump has made a number of sweeping proposals for a second term in office, outlining a wide-ranging agenda that targets federal regulations, taxes, immigration, and social issues.

As of Wednesday morning, The Associated Press projected that Trump is the winner of the election after securing enough electoral votes over his opponent Vice President Kamala Harris.

Early Wednesday, the former president and president-elect claimed victory in the 2024 presidential contest, telling supporters that voters had given him an “unprecedented and powerful mandate.” Early projections show that Trump may win not only the Electoral College but also the popular vote, something he’s never done in his previous two campaigns.

Immigration

Since 2015, Trump has made curbing illegal immigration a cornerstone of his campaigns. As president, he built or reconstructed about 400 miles of border barrier along the U.S.–Mexico border and implemented a number of rules curbing illegal migration into the country.

During the campaign, Trump often said that he would initiate the largest “mass deportation” effort in U.S. history if elected. Recently, he also warned Mexico that he would impose a 25 percent tariff targeting the country if it fails to curb illegal immigration and that he would raise that tariff if Mexico doesn’t comply.

Also, he’s suggested more enhanced screenings for immigrants, ending birthright citizenship—which may require a constitutional amendment—and reimposing certain policies enacted during his first term such as the “remain in Mexico” protocol.

Tom Homan, a former acting director of U.S. Immigration and Customs Enforcement (ICE) who is expected to join the new administration, told media outlets last year that the scale of deportations depends on what resources are available.

During a “60 Minutes” interview in October, Homan was asked about whether families would be separated. Homan responded, “Families can be deported together.”

Vice President-elect JD Vance said in his debate with Minnesota Gov. Tim Walz on Oct. 1 that deporting criminals would be a second Trump administration’s initial focus.

“You’ve got to reimplement Donald Trump’s border policies, build the wall, reimplement deportations,” Vance said, adding that the United States has 20 to 25 million illegal immigrants in the country.

“What do we do with them? I think the first thing that we do is we start with the criminal migrants.”

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The Menace of the State

The election is upon us. We wonder whether we have to have war, tariffs, and deficit spending, regardless of whom we support. What are we to do? Faced with the intractable problems of misgovernment, we need to look deeper. Following the great Murray Rothbard, we should ask, do we need a State at all? Rothbard’s answer was a clear “No.” And not only do we not need a State; the State is a menace.

Following Franz Oppenheimer and Albert Jay Nock, Rothbard identified the State as a predatory organism. It is the “organization of the political means.” The State produces nothing by itself but takes what other people have produced. Froom this we can deduce a vital fact. Society must have existed before the State. Otherwise, there would be nothing for the State to take.

But you may wonder, how is this possible? Whatever its defects, don’t we need a State to ensure that we have law and order? If we have property rights, don’t we need a legal order defining these rights? The answer is that we do need law and order, and we do need a legal system. But people can establish law and order without the State.

We know this because in any society that consists of a small group of people, certain conventions will naturally tend to arise. People will agree that they shouldn’t kill or assault each other. Otherwise, they couldn’t survive. They will also agree that they need private property, and a simple rule will naturally suggest itself: The first user of unowned land becomes the owner.

What happens, though, if there are disputes over who the first user was or about the boundaries of the land that has been acquired by the first user? The disputants will seek an impartial arbitrator, whose decisions will be respected. After a while, certain natural leaders will emerge from among these judges. But they won’t constitute a State, because they lack the power to extract resources through taxation.

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UK government’s tax plans will destroy family farming; farmers to gather in London to protest

A rally is being held in London to protest against the UK government’s agricultural policies.  Organised by the National Farmers’ Union (“NFU”), which represents more than 46,000 farming and growing businesses, the rally is taking place on 19 November.

In a vlog published on Friday, NFU President Tom Bradshaw outlined the plans and urged NFU members to send in their videos to demonstrate the impact that the Budget announcement will have on their business.

Bradshaw began, “Members, farmers, I know that today many of you are feeling angry and betrayed. And we absolutely share that frustration. We understand what the impact of the removal of APR [agricultural property relief], or this family farm tax, which has been implemented could have on you, your farm and your family. We want you, our members, to be involved in the next steps.”

Farmers have also been posting videos on social media, see HERE and HERE.

Agricultural Property Relief (“APR”) is a relief from inheritance tax on the transfer of agricultural property.  In her budget,  Rachel Reeves announced significant changes to the UK Inheritance Tax regime. Business Property Relief (“BPR”) and APR claims will be capped at £1m per taxpayer with inheritance tax of 20% applying on the full value of farms and rural estates above £1m.  The tax is effective from April 2026.

The cuts to APR potentially jeopardise thousands of family farms by increasing the Inheritance Tax burden. APR provides critical relief on the transfer of agricultural property, allowing farming families to pass their established food-producing business down to future generations.

This change could force family farms to sell off land to pay inheritance tax, potentially breaking up family businesses and destabilising food security. Why should non-farmers care? “Preventing farms from being sold or broken up is a public interest issue, too. Food security in the UK is declining in several sectors, making the country more dependent on imports,” The Guardian reported.

The Country Land and Business Association will be making urgent representations to the Treasury on how this will affect 70,000 farms.

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Trump Pledges to Grant Homeschoolers a $10,000 Per-Child Tax Write-Off

Donald Trump has pledged to expand his former Trump tax cut education savings account plan (which allowed up to $10,000 dollars a year tax-free on tuition for grades K-12) to the homeschooling community.

Trump first outlined his previous tax incentives for school choice.

“When I am reelected I will do everything I can to support parents who make the courageous choice of homeschool. Under the Trump tax cuts, we allowed families to use 529 education savings accounts to spend up to $10,000 a year tax-free on tuition for grades K-12. This was a tremendous win for school choice, very important, school choice. Remember that term? And yet that benefit did not apply to homeschoolers,” Trump said in a recent video.

The GOP candidate then outlined his new initiative, bringing the school choice tax incentives to homeschooling.

“So to support the growing homeschool movement, in my next term I will immediately fight to allow homeschool parents the same incredible benefit, $10,000 dollars a year per child, completely tax-free to spend on costs associated with homeschool education. I will also work to ensure that every homeschool family is entitled to full access to the benefits avaliable to non-homeschool students, including participating in athletic programs, clubs, after-school activities, education trips and more,” Trump said in a recent video.

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House Judiciary GOP Exposes Kamala Harris’s Open-Borders Alliance with United Nations Bureaucrats: $81.7 Million in U.S. Taxpayer Funds Spent to Facilitate Direct Flights for Illegal Aliens into America

The House Judiciary GOP has exposed what they call an “open-borders alliance” between the Biden-Harris Administration and United Nations bureaucrats that uses U.S. taxpayer dollars to enable illegal immigration.

The findings reveal that at least $81.7 million in taxpayer funds have been allocated to foreign nationals employed by the U.N., who advise migrants on ways to enter the United States.

This funding has established “migration centers” across Central and South America, facilitating nearly 70,000 aliens with potential resettlement options in the U.S.

According to the report, since 2021, the Biden-Harris Administration has overseen the release of nearly 5.8 million illegal immigrants into the U.S., with an additional 1.9 million entering as “gotaways” who evaded apprehension entirely.

The GOP committee argues that these numbers illustrate an administration bent on dismantling border security. Instead of fixing the problem, the administration has created a workaround through the Safe Mobility Initiative—a program designed to “avoid the optics of border crossings” by coordinating with U.N. agents in 13 Central and South American cities.

The program’s Safe Mobility Offices (SMOs), funded by U.S. taxpayer dollars, assist aliens in bypassing the southwest border altogether.

Foreign nationals from the International Organization for Migration (IOM) and the United Nations High Commissioner for Refugees (UNHCR) counsel migrants on various ways to enter the United States, including through family reunification and “labor pathways.”

Only 14% of SMO staff are American citizens, with the rest advising migrants at U.S. taxpayers’ expense. Since the initiative’s launch, 18,000 aliens have reportedly been resettled in the U.S., and thousands more are lined up for entry through alternative pathways.

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Intel might be too big to fail — Washington policymakers are already discussing potential solutions if the chipmaker cannot recover

American lawmakers have quietly been discussing options on how they could help Intel get back on its feet should its financial situation deteriorate. According to a Semafor report, sources say this possible rescue package will be above and beyond the scope of the CHIPS Act, which would award the company at least $8.5 billion before the end of 2024.

It should be noted, though, that these are just precautionary discussions of backup plans in case the company folds. After all, the company had reported a strong outlook on its third quarterly earnings call for 2024.

These discussions show how much Washington, D.C. values Intel, primarily as the U.S. competes with China for global dominance in advanced technologies. Although both AMD and Nvidia, semiconductor giants in their rights, are also American companies, Intel is the only one that both designs and manufactures chips. “Intel is the only American company that designs and manufactures leading-edge chips and is playing a critical role in enabling a globally competitive semiconductor ecosystem in the U.S.,” said an Intel spokesperson to Semafor.

If Intel were to fail, the U.S. would have to rely on TSMC and Samsung to make its most advanced chips. Even though both of these companies already have fabs in the U.S., they only provide a fraction of their total output. Furthermore, although both companies have headquarters based in allied countries, South Korea and Taiwan are at risk because of their proximity to China.

Another reason why the Capitol and the White House wouldn’t want to see Intel fail is because it’s one of America’s top exporters, with its export revenue in 2023 exceeding $40 billion. Aside from that, the company is also working with the Pentagon’s Secure Enclave program to build leading-edge chips for the military, making it crucial for the country’s economy and security. It’s also a major employer — even though it’s in the process of laying off over 16,000 people, it still has over 120,000 employees on its payroll.

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Report finds cash-strapped NASA still spending MILLIONS on grants to DEI and “environmental justice” initiatives

Despite being severely underfunded, the National Aeronautics and Space Administration (NASA) still spent millions of taxpayer dollars on grants to initiatives that focus on “environmental justice” and diversity, equity and inclusion.

Records indicate that much of NASA’s $10 million grant spending went to universities to help them study environmental justice in urban areas as well as other places with high concentrations of racial minorities.

For instance, the agency approved $150,000 in funding to Columbia University so it could pair “earth observations and socioeconomic data” and enable students to do environmental justice work in New York City.

Another grant, this time worth $250,000, was paid out to Los Angeles as part of NASA’s Predictive Environmental Analytics and Community Engagement for Equity and Environmental Justice (PEACE) program.

To remedy its observation that “people of color often face higher exposure to air pollutants,” NASA’s PEACE program paid the city to provide pollution data to its residents in “a way that works across communities and cultural differences and specifically analyzes, engages and responds to needs for environmental justice.”

NASA has provided over $5 million for “environmental justice” grants since 2022, according to federal records.

“The environmental justice movement focuses on ensuring communities receive equitable protection from natural and human-induced environmental hazards,” NASA’s webpage on equity and environmental justice reads. “It embodies the principle that all communities should be heard and represented in decision making.”

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The US Is Funding 70% of Israel’s Wars

A new report by the Israeli outlet Calcalist reviewed Israeli military spending on wars since October 7, finding that Washington is funding 70% of Tel Aviv’s military costs. In a little over a year, the US has provided Israel with more than $20 billion in military aid. 

“The scope of American aid since the beginning of the war is about 85 billion shekels… According to official estimates by the Bank of Israel, the total cost of the war is…approximately NIS 118 billion.” It continues, “Therefore, according to a simple calculation, The Americans financed about 70% of the war effort.”

According to the Cost of War Project, the US has given Israel $22.57 billion in military aid since the Hamas attack. Calcalist concludes without US support, Tel Aviv’s war would simply be unaffordable. 

“There is no doubt that without the American aid the government deficit for the years 2024-2025 (which is one of the highest in the country’s history), would have increased by about 4.3 % GDP, which would have made it unfinanceable,” it says. “Therefore, it is doubtful whether this war would have been conducted as it is – neither in intensity nor in scope – without the American assistance.”

The US has sent Israel tens of thousands of bombs, artillery rounds, and tank shells. Those weapons have been used to commit countless war crimes against the Palestinian people of Gaza. 

The official death toll in the besieged enclave now exceeds 43,000. However, a group of American healthcare workers who have spent time volunteering in Gaza estimate the actual death count to be over 118,000. 

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