The BIF, Build Back Better, Continuing Resolution and Debt Ceiling omnibus

I'm seeing a lot of Twitter discourse about how we shouldn't blame Manchin and Sinema, we should blame all the Republican senators.

Seems a little weird if coming from the left, which has pretty much given up on expecting Republicans to vote with Democrats on anything.

So what is the source?

 

https://www.washingtonpost.com/us-policy/2021/10/22/sinema-warren-billionaire-tax/

Democrats are trying to tax unrealized capital gains, with deductions for unrealized capital losses, of billionaires and people making $100,000,000/year for 3 years.

The perverse incentives this creates, for billionaires, entrepreneurs, and public policy should be obvious, but apparently not.

The inevitable narrative after the next stock market correction: "Treasury writes billionaires checks for $50M". "Warren vows to stop giveaway to billionaires", just like the corporate loss carry-forwards that have had people up in arms for years.

Forcing founders to liquidate their ownership and control of their companies is bad for business. This might be mitigated with nontransferable super-voting shares, but as the economic and control incentives diverge, misalignment and moral hazard is all but guaranteed. See Tim Sweeney re: Epic.

For the rich-but-not-quite-billionaires, this encourages them to take out personal loans as long as interest rates are lower than the tax rate, rather than grow their holdings across the billionaire line, simultaneously increasing their own consumption with no commensurate tax increase.

For proper billionaires market manipulation on Dec. 31 to lower their assessed gains for the tax year as much as possible becomes a viable strategy, depending on the size of the tax.


A less distortionary alternative would be to tax equity-collateralized loans based on the loan amount.

 

this seems about right

 

I think the point is that the left shouldn't let the press and punditry get by with just assuming the Republicans are bad actors as "background noise" effectively letting them off the hook for explaining why they oppose the proposed policies.

 

No it doesn't. To continue the absurd consumerist analogy, if I ordered Domino's and they deliver the wrong thing I'm still justified in complaining. Regardless of whether Pizza Hut has been taken over by the Joker.

 

I'm glad you're only disappointed with the cheese pizza while I sit over here dying from the arsenic poisoning that the mushrooms were supposed to save me from.

 

Somehow I knew that something like this has been done already.

https://dc.fandom.com/wiki/The_Batman_(TV_Series)_Episode:_Strange_Minds

 

There's a difference between "why won't you vote for this" and "will you vote for this." Spending time asking the from of a group notorious for deciding not to play the game seems like a waste compared to getting people allegedly on your own team to at least make an effort.

Your point makes more sense to me in terms of getting out the vote than getting this bill passed.

 

Well yeah, obviously they are not going to give you any votes on the bill. They've gone to the mat (debt ceiling) to prove what their game is

 

Yeah, but how much do they get paid when they deliver the goods? Some of those Canteen drivers that fill up vending machines pull in six figures.

 

In 2006 (latest I found for PoS): White drivers averaged $40,661 a year (median 35k) and POC drivers averaged $27,379 a year (median 25k).

http://www.portjobs.org/storage/documents/bigrig_shorthaul_exec.pdf

 

Holy Shit!

 

Allegedly the original ebike tax credit is now in the bill?

 

I need details.

 

I heard years ago from a black acquaintance that he had driven a beer truck for one of the big distributors in the Tampa Bay area. He said they treated him well, but the problem was that black drivers got routes with mostly black customers. There was a big difference in income for drivers in black neighborhoods, versus drivers in white neighborhoods. He said it wasn't overt, it was just the way things were.

 

Every time the value of my property goes up I pay higher property tax.

If it's an issue. allow them to buy T-bills.

But the old conceit that investment in corporations is always good for America is beyond obtuse. Most large publicly traded corps are internationals. Making money for investing in ROI in China is NOT an advantage to the US national interest, the US federal government, or the average tax payer.

The only way it should be deferred is if it's local. And almost none of it is.

 

This is great news. This not only cuts seniors’ costs but saves the government money which can hopefully be used to mollify Manchin.

 

You don’t get money back on your property taxes if the housing market tanks, and 46 states + DC have at least some sort of constitutional brake on increases, either assessment (CA and 18 others), rate, or total levy. Apples and oranges.

 

Having caps on assessments only increases the problems.

Here’s the thing about taxes. Bills gotta get paid. Even bills owed by the government. Putting a cap on assessments only fixes one variable. If there’s no limit on government spending or tax rates, the cap on assessments doesn’t lower or even keep your taxes where they were the previous year.

And, putting a cap on government spending essentially means government employees don’t get paid. That includes teachers as well as the drones at the DMV.

Guess who does get paid - law enforcement. Cuz they’re the only group that idiot voters allow to keep their unions.

So, lowering or staying property taxes does absolutely nothing for creating jobs or helping the economy. In fact, it only makes things worse.

 

BIF passes, Progressives get a written commitment from moderates to vote for BBB by the week of the 15th.

Pretty good rundown:

https://www.cnn.com/2021/11/06/politics/president-joe-biden-infrastructure-bill/index.html