Happy New Cliff

Dear Contra_Folk,

Just days before midnight New Year’s Eve, we’ll likely “hear” of pending, soon to be introduced legislation to tax Millionaire’s – and raise the 1%’s faux marginal ordinary tax rates to 55%, but just not on Jan 1st!  Sure, go ahead, beat ’em and raise dividend tax rates from 15% to 25% as structured – just leave alone the next 5%, those are the working professional stiffs, with a family income in the $250,000-$499,999 bracket.

We see ahead a tax Bill HR-666, with the devil being in the details (eg. chained CPI and means testing) that will raise all effective income tax rates (not just on the REich as MSM once again has promised).

What will likely happen is the middle classes’ effective taxes (like ordinary income and payroll taxes) will jump immediately thanks to never-pending Congressional inaction.  A large percentage for dividend, estate, and/or capital gains rates will also go up temporarily, but as usual, it will be regressively more painful for you on Jan 1st than on Richie REich.

This fiscal cliff is the next 60-day “can-kicking” excuse for more “no real growth” after the election, but also will be used for the triggering excuse for the “next” North American Recession.  News Flash: We’re all just “muddling through” the same “ongoing” Deleveraging Depression (2007/8-2018/9).  Now that every inflation and growth metric is gamed, and rigged for central bank money printing QE 89.8 Lite camouflage, we’re fearing the escape of no change, no growth STAGNATION policies have now morphed into a new DEFLATIONARY spinning spiral. 

So to correct this (under this Command type economy), the Banksters and Corporate Elite must deploy loans and finance some much-needed growth; but they cannot, since they need the Fortress Balance sheets to survive when the Gubbermint soon goes broke printing “not paid for” money printing for Mad Money Corporations.  Bond yields as a result, can go much lower in this new deflationary environment; one where consumer and input prices fall due to low-end user/consumer demand all combined with a cocktail of demographics and deflation.

One should remember, that this amount of tax revenue is now required just to pay the expense of “principle plus the ZIRP no interest costs” regarding amounts absconded for the 2007/8 Bankster’s empty bank account problem (a “not-so-free-market” $16T+ taxpayer led IMF | no jobs| no lending| communist dictator bail-out response by the .01% Plutocrats for the .01% Plutocrats).

Two Certainties In Life (Death & Taxes)

Perhaps taxing the working stiff’s professional family income of just $250mm, all the way up… way past $250B+, or where the .01% of the 1% hail from, at the same pre-Bushy tax rates, is the real problem.  The real difference is 10,000 x fold increase in assets:income but with zero federal tax revenue receipt progression or increased contribution from the uber_wealthiest .01% of 1%.  But why?

Flat Tax vs. Fat Tax

For those 1% Saps are already paying over 50% of all income taxes, we hear again from MSM.  News Flash: The REich will estate plan to escape “pretend 55% tax traps”; and will adjust to simply “donate” it instead.   In the process, invalidating the Social Contract (via a non-democratic single or lump sum premium payment for life insurance tax-exempt contracts) and are now going to write up legislation that will give them even higher marginal tax credits, offering ever more (progressive) charitable donation tax credit relief… encouraging them into arranging their personal and family finances to offset (exactly) all remaining taxable income above the taxpayer’s pain threshold for federal taxes due at time of death.

“Government Revenues Vanished”, Treasury Declares in News Headline

To add insult to injury, the fact that the 1% are avoiding paying into the Government ponzi scheme completely during this amazing wealth accumulation period (for only the 1% mind you) over the last two decades as Boomers’ boomed is staggering.


Who is paying for ’em shiny turds for Bankster Bail-Outs, ZIRP, Greece, National Defense, Contractors, DOW Jones’, and/or their Boomer pensions and oh yeah, $16T+ in underfunded fiscal spending habits Y-T-D?  What does austerity look like and feel like? Watch as the next Generation gets sleepy, closes their eyes, and wakes up and sees New Years’ Day through “a wider or broader net” of middle and lower class taxation creep.  Now exactly who will be paying for your way? Only You.

A Generational Herd Mentality

The 1% are then asked, “Why should you allow ’em (Gubbermint) to waste 70% of your tax dollars servicing the entitlement programs of the State’s aged, sick, lazy and poor?  Especially, when it could be used exactly as you might want, or wish for, say for instance you, or your family and friends to later hopefully benefit from as new localized geographic infrastructure project… say for a new preventive health care building, or even a specialized hospital wing?”  End result is very little wealth re-distribution – exactly as planned.

Herman’s Left-Foot Dominant Putting School For the Giftedschoolforthegifted

They say through the grapevine of the 1%’s, that with a simple onshore charitable remainder trust, you and your zombie insurance company, with the new “suicide waiver” exempt collateralized death benefit insurance policy & back-to-bank annuity, everyone can eat cake (all but the Gubbermint) – allowing you to even manage your taxes from the grave, and possibly beyond … exactly as you wished or intended.

What is the solution to the !%’s Federal Tax-Avoidance scam via soon to be abused Charitable Donation Credits?  A Flat 19.9% Federal Tax Rate for Individuals – and Corporations!  Ouch…they’ll all certainly scream!  Now, go on and exempt, deduct, loophole, or donate any part of the remaining 80.1% if (and how) you wish, Plutocrats.

Your 19.9% Continuing Power of Attorney,


p.s. Listen to them heckle at Congressional Leaders,“…if I’m paying over half of your Federal tax bill then I’ll decide exactly how, when, where, and who gets paid from any of my money, or receives an increasing Federal Department Program Budget (Funding) level next year!” 


About ContraManFund

Fictional (maybe not if you are an accredited investor) trading of a long/short contrarian-driven investment model portfolio based upon current economic environments and counter-intuitive trends. Legal Disclaimer The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions. NO MATERIAL HERE CONSTITUTES "INVESTMENT ADVICE" NOR IS IT A RECOMMENDATION TO BUY OR SELL ANY FINANCIAL INSTRUMENT, INCLUDING BUT NOT LIMITED TO STOCKS, OPTIONS, BONDS OR FUTURES. The author may have a position in any company or security mentioned herein. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility. Please consult your own investment advisor before making any investments anywhere, and always do your own due diligence before undertaking any individual investment.
This entry was posted in Business, Debasement, debt ceiling, Economics, Investment, Investment Finance, Monetization, Quantitative Easing, Stock Market and tagged , , , , , , , , . Bookmark the permalink.

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