Monday, March 30, 2020

When ignorance reigns, life is lost...

I've always loved that quote from Zach de la Rocha and it has never resonated with me more than it does today.

via @cryptokakuji
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Despite my rantings, the lure of free money will once again buy Congress all of the goodwill they want. 

I'm going to try to break this down in way that might make a bit more sense.  Imagine that you are a married couple with joint checking, etc.  Imagine that your spouse took $6,000 out of your joint checking, flew to Las Vegas and spent $4,800 on the some of the activities in available in Las Vegas.  When she returns home (aha plot twist, huh?), she gives you the remaining $1,200 that came from your joint checking would you be happy?  Of course not.  Well, this is the $2 trillion bailout in in a nutshell.

$2.0 trillion works out to $6,000 per man, woman, child in the US.  Including all of the retirees, the 8 month old babies, and everyone in between, the government is borrowing $6,000/person or $24,000 in the case of my household, so that they can send everyone a check for $1,200.  Huh? I'm only okay at math, but borrowing $6,000 to give me $1,200 doesn't seem like a good model.

So where is the other $4,800 going that the government has borrowed on your behalf going?  Oh, I'm glad you asked....

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* $44 billion for student loans???
* $100 billion for hospitals
* A huge $4.3 billion for the Center for Disease Control (a bit late, no?)
* $260 billion in extra unemployment benefits
* $425 billion in the slush fund for corporations (seriously?)
* $350 billion for small business loans to tiny companies like Marriott.
* $274 billion to states

Drill down a little further and we find that there are tons of targeted breaks for the little guy in this bill like:

1) Tax breaks for private jets and their users.  I don't know about you but this was a huge one for me and reminded me that Washington really does care about the little people. My private jet has been sitting idle since the Superbowl, but since I no longer have to pay a 7.5% excise tax and my jet company is now exempt from fuel taxes I'm ready to fire it up and escape to St. Barts.  It is funny, though, I think I still have to pay tax on the gas that I put in my car, how about you?

2) Well, okay, maybe you aren't in the real money, private jet class, quite yet.  Maybe you are just your regular couple making a few million dollars with some huge real estate holdings, there should be a way to ease your pain in this time of uncertainty, right?  If you manage to have $500,000 loss or greater on your real estate property business this year, I mean who doesn't, then you can offset an unlimited amount of income from other sources.  So let's say, for example, your last name was Kushner and you married someone named Ivanka, and you managed to have $30-$135 million of income in 2019, if you manage to take a huge loss from real estate in 2020 it is possible that you could avoid paying taxes on your regular income ---- hypothetically.

3) Well, if you don't qualify for a corporate jet tax break or real estate mogul tax break maybe you can benefit from this perk in Nevada....

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via@manda_like_wine

The state has kindly created a grid pattern on a concrete parking lot for the homeless so that they can socially distance. 

Painted boxes on pavement for the homeless and tax cuts for private jet users. 

As a Childish Gambino sang..."This is America".

We are fighting three pandemics - COVID19, Ignorance and Greed.


Daily dose of humor: 

* Eating pizza rolls in a bowl with a spoon? This is considered proper etiquette in quarantine.

* For those of you keep track at home, today was March 83rd.

* Thought of the day: How are people with secret families handling this pandemic?

Cheers!

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