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  • Yes, Republican Leaders Are Pushing For New Tax Increases

    Whether you are a Republican or a Democrat, conservative or liberal, you will want to be aware of what I write about below. The “Establishment” Republican leaders are quietly pushing for a huge tax increase that has yet to get much attention in the mainstream media.

    This new tax increase is called the “Border Adjustment Tax” (BAT). In essence, the BAT would impose a 20% tariff on all imports to the US.  If enacted, it will mean significantly higher prices for imports and anything made in America that includes imported goods.

    You probably haven’t heard about this trade-killing tax since its main proponents, House Speaker Paul Ryan and House Ways and Means Committee Chairman Kevin Brady (both Republicans), have done their best to keep this effort quiet.

    The good news is that if enough Republicans oppose Ryan, Brady and their backers, this anti-trade tax will not see the light of day. Like I said, whether you are a liberal or conservative, you need to know about this since it could mean a big cost-of-living price increase for all of us.

    Sadly, the BAT is not the only bad tax being promoted by Republicans. Another group of Republicans is lobbying President Trump for a new “carbon tax” in exchange for a “significant” rollback in EPA regulations. The GOP promoters of this new tax claim it will help the economy and benefit working-class Americans. A closer look finds it will do neither and is another very bad idea. I’ll fill you in below.

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  • Debt Ceiling Battle’s Predictable Outcome

    A political battle is looming over raising the federal debt ceiling limit which we will hit over the coming weeks. The media warns that we could face a massive government shutdown if an agreement is not reached to raise the debt ceiling. This is nothing new, and the truth is that the debt ceiling will be increased, as always, but probably not until the last minute.

    The Republicans are hoping to extract more federal spending cuts in order to agree to raising the debt ceiling, and I predict that they will get very little in the way of meaningful cuts. Some Democrats are calling for new tax increases before increasing the debt ceiling, but this is just a bargaining ploy. Truth is, it's all politics as usual on both sides and in the end, the debt ceiling will be increased - bank on it. I suggest not paying much attention as this plays out.

    The debt ceiling political fight that will play out over the coming weeks will once again miss the point. Our national debt is spiraling out of control, and raising the debt ceiling limit does nothing to correct this problem. It just kicks the can further down the road. Frankly, I wonder if it is possible to construct a viable plan to reverse our out-of-control spending at this point. Most of our leaders in Washington are drunk on increasing federal spending.

    At some point, unfortunately, the bond market will put a violent end to this. I have written about this before, but this week, I put this discussion into a more detailed perspective. The bond market may well send interest rates soaring once again when it become clear that our politicians refuse to cut the exploding size of government spending and deficits. Not a pleasant topic to consider, but we must keep focused on it.

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