As far as the “fiscal cliff’s” concerned, the beat goes on. And in another glaring example of the inanity of the incumbent’s position on taxes, according to the Associated Press via Drudge: “The Washington Post Co. will pay its 2013 dividends before the end of this year to try to spare investors from anticipated tax increases.”
So here we have the age old bastion of liberalism in the press not only reconfirming the total hypocrisy of what they preach by taking steps to reduce their investor's tax liability, but also abetting another two-faced conman, Warren Buffet. It just happens his firm, Berkshire Hathaway, is the Post’s “largest shareholder with an estimated 1.7 million shares, which means it could get a roughly $17 million dividend payment.”
As for me, this is simply one more example of the gross fiscal incompetence of Democrats in general, and the POTUS in particular whereas they have no idea of how money works, never did and never will. But their inability to comprehend even the simplest of monetary concepts reminds me again of when I joined a very fast growing financial organization many years ago.
When on board, I asked my manager what he thought I should do to start producing sales quickly and what kind of transactions the organization preferred, to focus my efforts on those areas of business. He told me the best way with this employer, or anywhere else I might arrive down the line, was to analyze the compensation plan. Quite simply, highest returns would be gained by closing business the company paid the highest commission for.
Now, if you apply that simple concept to national fiscal policy, and taxes in particular, it's exactly the same. Because right now, and certainly in the future, businesses are diligently determining the breakpoints where revenue increases result in higher tax bills versus lost revenue should volume sink. Their optimum goal being to derive the point where additional volume generates less net return than incurring the additional overhead and costs to produce it, especially in valueless expenses like taxes.
And that’s why it’s likely that businesses will hire more part-time help in the future than full-time. New plant expansion, additional lines of business, research and development and typical speculative investment in growth will likely decline. Because it makes no economic sense to expand or invest when the benefits of all your effort not only go elsewhere, but those taking your hard-earned cash won’t even consider producing a budget themselves.
But instead, the Dem’s act just like spoiled children who throw money away without an intelligent or responsible thought, just whining and crying until they get an increased allowance.
However, I believe the light for Republicans at the end of this deep dark tunnel of fiscal moronics is going to be another, deeper recession. But this one can’t and won’t be hung on “W.” Bush whereas it’s crystal clear as to who caused it. And if nothing else, it doesn’t matter how much taxes are raised in theory. If there’s nothing to tax, there’s no income at all. Which is precisely where the clueless Dem’s are taking us once more.
That’s it for today folks.
Adios
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