Biderman: Expect Massive Immediate Negative Impact From Higher Taxes

Trim Tabs’ Charles Biderman states that the US economy will be immediately negatively impacted by higher taxes- with or without a fiscal cliff deal.   He states the best deal we can expect will raise taxes by around $200 billion, which would result in an annualized 3% drop in after tax take-home pay!   If no deal is reached, taxes will increase by $500 billion, which would result in a whopping and incredible 7.5% drop in after tax take-home pay for Americans!  Biderman states this massive cut in American’s take-home pay will DEVASTATE both the US and global stock markets!

Biderman’s full update below:

 

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Comments

  1. These government bastards are playing Russian Roulette with a Glock 19, a full magazine and aimed at our heads.  Does anyone this these rat bastards care one fig about what happens to us when they pull the trigger.  Will their salaries and perks go down a nickel?  Not likely.

    • The claim it will hurt the stock markets is BS it is going to hurt the working person who is struggling to get by, they may have a 401k that is doing badly but the majority don’t.  How many more Americans are going to land on food stamps after this? How many will lose a job or get hours cut because their bosses taxes went up? This tax increase will eat as much or more in federal welfare benefits as it raises.

    • Does anyone this these rat bastards care one fig about what happens to us when they pull the trigger.”

      Only as much as a rancher cares about any one of his milk or meat cows.  Mildly interested but definitely not concerned.

      The claim it will hurt the stock markets is BS it is going to hurt the working person who is struggling to get by…”

      Actually, Mary, a significant reduction in take-home pay WILL harm the US stock market because a lot of people invest any extra money they have in it.  With less extra money, there will be less investing and prices will slump.  Yes, this hurts those in the investor class directly but it also hurts a lot of working class people too as companies batten down the hatches and prepare to get leaner in order to survive.  These companies will not be buying new equipment, so those employed in the manufacture of such equipment will be either laid off or their hours will be cut.  They will also not be hiring any new employees and they very well might be cutting the hours of their employees.  There are immediate ramifications to raising taxes.  Companies are not cash cows that produce unlimited revenue that the government can siphon off at will via ever-higher taxes without serious repercussions.  People and companies always react in any way that they can to reduce their tax obligation.  Chief among them is to move their revenue generation off-shore and beyond the reach of the US IRS.  There are many other ways to achieve tax reduction and ALL of them are likely to be employed in response to the coming higher taxes.

      In theory, at least, it is possible to closely estimate an optimal revenue generation for any federal income / corporate tax rate.  Raising taxes can raise government revenue but only to a point.  If that point is passed, revenue begins to decline and raising the tax rates further will not bring it back up.  I do not know where that point is but there are people out there who do.  I can honestly say that there is no one in the Obama regime with any power of persuasion who understands this effect, so to them, higher rates ALWAYS equates to MORE revenue.  This is well known by some not in the Obama regime to be the case but it looks as if we  have to repeat this experiment once again in an effort for some to regain that knowledge.   

    • If these rat bastards cared about us, then they would have shut down their banks, stop the frauds, let gold and silver’s prices move without getting manipulated and they would seriously fix all the problems around the world. But, that’s not the case. :(

  2. Yea AGXIIK We are in for rough times ahead along with Millions of others and the only solution is; Is To Throw The Bastards Out!!!!

  3. I work with a lot of companies and already seeing a massive drop in people interested in purchasing production equipment.  Things have gotten uncomfortably quiet since the election and they are not picking up.
     

    • Before I retired in 2004, I worked in the chemical industry.  That is a very competitive business where sales are often won or lost based upon fractions of a cent per pound of product.  Watching this industry as well as the transportation industry can give us a pretty good preview of what is soon to come.  Take a look at a 5 year chart of the Dry Ships stock (DRYS) sometime. It VERY clearly shows massive transportation use in early 2008, a huge loss in materials shipping in late 2008, and virtually no recovery since then.  Recovery?  What recovery?
       

    • A lot of businesses are being shut down due to the lower demands of their products. The smaller businesses die first and then the big corporations such as Walmart would then also die at their turn. All the major businesses have moved to Asia and others have hired illegal Mexicans to work instead of the Americans. 

  4. How about we let the banksters collapse by not bailing them out so that we can use that amount of dollars for other better uses? They are the ones who caused the problems at first so by getting rid of them, the problems will be gone and the economy will recover.

  5. this tax wont kill the american economy … you cant kill a cadavre … at worst this warrants a charge of necrophillia

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