“The economy is in a strong recovery from the VirusCasedemic shutdown, and now Mr. Biden plans to put a dampener on a Hot economy with huge tax hikes” — Paul Ebeling
“You have to go back to the ’70’s to remember when tax rates would be as high as they’d be under the Biden plan,” economist Steven Moore said in a recent interview.
“We’re talking about higher taxes on capital gains income. We’re talking about higher small business taxes. We’re talking about our corporate rate going up to one of the highest rates in the world. There is also an increase in the death tax. There is talk of a wealth tax.
This just as locked down blue states like New York and industries like movie theaters and cruise lines are get rolling again.
The Big Q: Why then if we want to get this economy booming again would he (Biden) be talking about $2-T in higher taxes?
The Big A: There is no answer to that Why question.
This is the worst time to be raising taxes or even talking about raising taxes on American businesses and investors and consumers; we need to let the economy grow.
The Democrats are taking about going after the rich, but supply-side economics of The Trump Administration helped the economy boom before the VirusCasedemic.
Historically, tax hikes ultimately come down on everyone.
“I think this is throwing a wet blanket on a Hot economy,” Mr. Moore concluded.
“Any prudent businessman will tell you, one does not raise taxes in a recovering economy unless you want to destroy it, for any tax increase is always pass through to increased consumer pricing and inflation. It is idiotic as most experts would state,” says LTN economist Bruce WD Barren, @Bruce_WD_Barren
Monday, the S&P 500 advanced 0.7%, as Quarter-end rebalancing efforts drove the mega-caps higher and suppressed Treasury yields, it closed +1.1%. The NAS Comp increased 1.2%, the DJIA increased 0.3% and the Russell 2000 -0.9%.
Volume: Trade on the NYSE came in at947-M/shares exchanged.
HeffX-LTN’s overall technical outlook for the major US stock market indexes is Bullish with a very Bullish bias in here.
- Russell 2000 +14.8% YTD
- DJIA +6.9% YTD
- S&P 500 +4.9% YTD
- NAS Comp +3.8% YTD
Looking Ahead: Investors will receive New Home Sales for February and the Current Account Balance for Q-4 Tuesday.
Have a healthy day, Keep the Faith!