Apparently, the whole reason that Arizona Democrat Senator, Kyrsten Sinema was against the proposed multi billion dollar climate change and liberal spending bill only because of the “carried interest tax loophole” closure.
Senate Majority Leader, Chuckles Schumer had no choice but to remove that provision from the bill in order to persuade Sinema to get on board. Once that was out of the bill, she was OK with the rest of it apparently.
The bill was designed to charge money managers with an additional tax because of a loophole Schumer wanted to close. Schumer claimed that because of that loophole, money advisors were able to pay less tax than most middle and lower income people. Personally, I don’t buy that since 48% of Americans don’t pay any income tax at all. That would include most middle and lower income people!
By taking the closure of the loophole out of the bill, it would cost about $14 billion in revenue. So, Schumer decided that he would hit corporations with a tax any time they instituted a stock “buy back” program. That typically is done when the stock is at a lower price than the company believes it should be. They then buy back as much stock as they can, which drives the share price north. The added tax to the corporations were estimated to add about $74 billion in revenue, a huge amount compared to what was pared out.
So, it looks like corporations won’t be as quick to re-purchase their own stock when the bill passes. Overall, the bill is seen as a tax and spend boost for Democrats that will allow them to get closer to Biden’s social spending targets to be ultimately wasted on climate change issues that haven’t been proven to do anything to actually reduce climate change. That’s because, as more and more scientists are starting to realize…it’s the earth’s cycle, not Jimmy’s mom’s SUV that is the cause of it.
Even if the Democrats are able to push this through, as it looks now, it’s going to be too late to actually accomplish anything come November, where the GOP is still poised to take over at least the House and quite possibly the Senate.
Carry on world…you’re dismissed!