Posted on 09/29/2020 11:57:29 AM PDT by karpov
Liberals hope Joe Biden will be another FDR. But that’s something to fear, as Mr. Biden’s tax proposals threaten to repeat Franklin D. Roosevelt’s big mistake, which many historians blame for plunging a recovering economy back into depression.
Roosevelt proposed a wealth tax in 1935, expanded it in 1936, and gave it real teeth in 1937. The federal government needed to repel the attack on the foundations of society by “economic royalists,” he argued. John Nance Garner, his vice president, agreed. As a congressman Garner had been forthright. “We have got to confiscate wealth,” he declared in 1918.
By 1936 the top U.S. personal income-tax rate had been raised to 79%, with a 70% maximum estate tax. The top federal corporate tax rate, however, was only 15%. In response, wealthy Americans accumulated profits inside corporations that owned their residences and other assets. Hollywood actors had their compensation paid to corporations they owned and from which they borrowed heavily.
Suddenly, at Roosevelt’s urging, Congress tore up all this careful and legal tax-avoidance planning with the Revenue Act of 1937. Corporate money was subject to immediate distribution and taxed at high individual rates. In effect, these were accumulated-wealth taxes, imposed at precisely the wrong time. The year also saw the introduction of a 1% Social Security tax on the first $3,000 of wages.
The economic pain was swift and severe. The Dow Jones Industrial Average crashed to 114 on Nov. 24, 1937, from 190 on Aug. 14, a 40% decline. Gross domestic product fell by more than 5% between 1937 and 1938. Unemployment, roughly 12% in May 1937, climbed to 20.7% in April 1939. Industrial production tumbled 33% from the spring of 1937 to May 1938 and didn’t return to its 1937 peak until late 1939.
(Excerpt) Read more at wsj.com ...
Buying a slurpy machine. Cash only.
The people just have no idea about the nightmare awaits them if Biden gets in. The MSM has kept the manifesto completely hidden.
Thank You for posting.
PS. Mark Zanzibar, Moody’s, stated yesterday that a Dem House, Senate and Presidency will be a boom for the economy.
l8r
Zandy
The Dem 2020 slogan appears to be: Beatings will continue until morale improves.
Only if “the economy” consists of government employment.
Few people study history these days.
They are hell bent on fulfilling Barry the Muslim’s dream of Destroying this Country, just like 1861, only this time they want Everyone Enslaved
And they still managed to blame Herbert Hoover.
Why would we need a tax hike under MMT? Or any taxes at all?
Why does everyone keep talking about what biden will do? he won’t be there in less that 2 weeks after the election.
Everyone should read The Roosevelt Myth by John T Flynn.
It details how FDR twice plunged the country back into deep depression and how his socialist utopia oppressed the small businesses with unbelievable rules and regulations to make it “fair” to all and to control economic output.
The “soak the rich” promise, which is an example of class envy run amok, was and is another “freebie” dangled before the gullible public, but the only result is, the “rich” either go into headlong capital flight, or they “adjust” their cash flow so as to make themselves appear less “rich” than their neighbors believe them to be.
Overall tax revenue FALLS far below the renewed demands put upon government resources, and distribution of goods and services sinks to the poverty level for EVERYBODY, except, of course, a few on the margins who deal in a black market, off the books.
Read: FDR’s Folly - it will show you exactly what’s going to happen.
Yes this country would go into about a 2 year recession that is unavoidable with Biden have a strategy now just in case
If he wins and this happens, they will blame it on Trump and the press will run that story for the next 15 years.
I think I’m turning Japanese
I think I’m turning Japanese
I really think so.
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