Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Online Elliott Wave Markets Trading Course Worth $129 for FREE! - 22nd Sep 20
Gold Price Overboughtness Risk - 22nd Sep 20
Central Banking Cartel Promises ZIRP Until at Least 2023 - 22nd Sep 20
Stock Market Correction Approaching Initial Objective - 22nd Sep 20
Silver Bulls Will Be Handsomely Rewarded - 21st Sep 20
Fed Will Not Hike Rates For Years. Gold Should Like It - 21st Sep 20
US Financial Market Forecasts and Elliott Wave Analysis Resources - 21st Sep 20
How to Avoid Currency Exchange Risk during COVID - 21st Sep 20
Crude Oil – A Slight Move Higher Has Not Reversed The Bearish Trend - 20th Sep 20
Do This Instead Of Trying To Find The “Next Amazon” - 20th Sep 20
5 Significant Benefits of the MT4 Trading Platform for Forex Traders - 20th Sep 20
A Warning of Economic Collapse - 20th Sep 20
The Connection Between Stocks and the Economy is not What Most Investors Think - 19th Sep 20
A Virus So Deadly, The Government Has to Test You to See If You Have It - 19th Sep 20
Will Lagarde and Mnuchin Push Gold Higher? - 19th Sep 20
RTX 3080 Mania, Ebay Scalpers Crazy Prices £62,000 Trollers Insane Bids for a £649 GPU! - 19th Sep 20
A Greater Economic Depression For The 21st Century - 19th Sep 20
The United Floor in Stocks - 19th Sep 20
Mobile Gaming Market Trends And The Expected Future Developments - 19th Sep 20
The S&P 500 appears ready to correct, and that is a good thing - 18th Sep 20
It’s Go Time for Gold Price! Next Stop $2,250 - 18th Sep 20
Forget AMD RDNA2 and Buy Nvidia RTX 3080 FE GPU's NOW Before Price - 18th Sep 20
Best Back to School / University Black Face Masks Quick and Easy from Amazon - 18th Sep 20
3 Types of Loans to Buy an Existing Business - 18th Sep 20
How to tell Budgie Gender, Male or Female Sex for Young and Mature Parakeets - 18th Sep 20
Fasten Your Seatbelts Stock Market Make Or Break – Big Trends Ahead - 17th Sep 20
Peak Financialism And Post-Capitalist Economics - 17th Sep 20
Challenges of Working from Home - 17th Sep 20
Sheffield Heading for Coronavirus Lockdown as Covid Deaths Pass 432 - 17th Sep 20
What Does this Valuable Gold Miners Indicator Say Now? - 16th Sep 20
President Trump and Crimes Against Humanity - 16th Sep 20
Slow Economic Recovery from CoronaVirus Unlikely to Impede Strong Demand for Metals - 16th Sep 20
Why the Knives Are Out for Trump’s Fed Critic Judy Shelton - 16th Sep 20
Operation Moonshot: Get Ready for Millions of New COVAIDS Positives in the UK! - 16th Sep 20
Stock Market Approaching Correction Objective - 15th Sep 20
Look at This Big Reminder of Dot.com Stock Market Mania - 15th Sep 20
Three Key Principles for Successful Disruption Investors - 15th Sep 20
Billionaire Hedge Fund Manager Warns of 10% Inflation - 15th Sep 20
Gold Price Reaches $2,000 Amid Dollar Depreciation - 15th Sep 20
GLD, IAU Big Gold ETF Buying MIA - 14th Sep 20
Why Bill Gates Is Betting Millions on Synthetic Biology - 14th Sep 20
Stock Market SPY Expectations For The Rest Of September - 14th Sep 20
Gold Price Gann Angle Update - 14th Sep 20
Stock Market Recovery from the Sharp Correction Goes On - 14th Sep 20
Is this the End of Capitalism? - 13th Sep 20
The Silver Big Prize - 13th Sep 20
U.S. Shares Plunged. Is Gold Next? - 13th Sep 20
Why Are 7,500 Oil Barrels Floating on this London Lake? - 13th Sep 20
Sheffield 432 Covid-19 Deaths, Last City Centre Shop Before Next Lockdown - 13th Sep 20
Biden or Trump Will Keep The Money Spigots Open - 13th Sep 20
Gold And Silver Up, Down, Sideways, Up - 13th Sep 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Why The Fiscal Cliff "Deal" is Spelled P-O-R-K

Politics / Government Spending Jan 07, 2013 - 05:42 AM GMT

By: Money_Morning

Politics

Keith Fitz-Gerald writes: After narrowly missing the fiscal cliff, the President went out of his way to thank the Senate and Congress for getting things done.

Granted, it wasn't an Academy Award speech, but it could have been given the performance he delivered as he congratulated everybody from his "extraordinary" Vice President Joe Biden to Harry Reid, Nancy Pelosi and even Speaker Boehner.


It was quite a spectacle really, but puuuulleeeassssse...now for the back- room details.

Behind the scenes, there was plenty of f-bombing, poison pilling and grandstanding leading up to the deal - and that was before the members of Congress and the Senate actually got serious with their usual ultimatums followed by earnest- looking sound bites and posturing.

And for what?...

According to Washington, they not only prevented the nation from going off the fiscal cliff, but also did lots of good things for America. Whether that's true or not depends on your perspective.

Given the fact taxes have increased for 77% of Americans thanks to payroll tax changes, and another $4 trillion stands to be added to the deficit, that's debatable.

But what gets me really riled up is the amount of pork contained in the bill.

For a bunch of lawmakers who were supposedly so busy and so involved in "negotiations," they were remarkably productive when it came to special interests.

Take a look at what else was packed into this sausage according to various sources including Fox News, ABC, the Washington Post and, of course, the US government itself:

•$46 million for motor speedways that allows NASCAR track owners to deduct everything from the bleachers to concession stands and track maintenance, too - zoom, zoom;
•$199 million worth of tax breaks for rum makers and rum production - big liquor must be sponsoring the post- deal parties or cocktail hours on the Hill considering that's a $13 per gallon kickback;
•A 10% tax break for everybody who buys an electric scooter or car up to $2,500 max - evidently Oregon, Washington and Nevada didn't get the memo. All three states are looking to add additional per- mile taxes for anybody who doesn't stop at a gas station. So much for fuel efficiency incentives;
•$15 million in tax breaks for movies filmed in America and $20 million if they're filmed in low- income regions. According to US News, that's a "Hollywood incentive that costs the country about $430 million to maintain." Remember to say "cheese" when you send in your taxes;
•$59 million in tax breaks for algae growers who are trying to turn green slime into bio-fuel. Seems to me that if it were viable technology, the government wouldn't need to "invest" but would be content to spend hopelessly large sums of money via contracts instead - remember $400 hammers? Or Solyndra?
•And finally, my personal favorite, a $9 billion tax break for big banks and manufacturers related to "active financing."

Never heard of it? Don't feel bad. Active financing is a special transaction tax break that specifically allows multinational companies to avoid paying U.S. taxes on foreign earnings if those profits resulted from "actively" financing a deal or activity on foreign soil. Not surprisingly, big businesses claim it helps them be more competitive abroad which is why - ta da - it's been extended for another year, even though the special provision which was enacted in 1997 was never supposed to be made permanent. - Guess it's good to capitalize on a loophole you helped create, eh fellas?

More Fiscal Cliff Madness
And it doesn't stop there.

The bill contains all sorts of other things, like a provision to subsidize coal on Indian lands in the interest of alternative energy, and an extension that enables tax-free financing for the redevelopment of lower Manhattan, now euphemistically called the "Liberty Zone." Originally intended to be a 9/11 reconstruction tool, it's resulted in high- rise luxury apartments and even, according to the Washington Post, Goldman Sach s' new headquarters.

Cracking down on tax cheats who are already in prison, tax breaks for taking mass transit...they're all in there.

All of this is patently absurd. No, scratch that...it's an unmitigated disaster and no wonder. According to Utah Senator Mike Lee, they only received the bill six minutes before voting on it. "Not one single senator who voted for this bill had read it," he observed.

Perhaps they're taking a cue from the Nancy Pelosi school of management when she quipped that we needed to pass Obamacare to "find out what's in it."

It's disgusting.

Sadly, if you think this is entertaining, stay tuned. I can hardly wait to see what our leaders will cram into the debt ceiling debate 60 days from now.

By the way, you want to read the 153 Page American Taxpayer Relief Act of 2012 as it's formally known for yourself, click here

Source :http://moneymorning.com/2013/01/07/why-the-fiscal-cliff-deal-is-spelled-p-o-r-k/

Money Morning/The Money Map Report

©2012 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules