It is said that nothing is ever really free. This is more than true, for there is always a price. As the saying goes, there are two constants in life- death and taxes.
The same can be said about these “money printings” as a part of the COVID-19 payments, for while they are in a sense “free money” (i.e. printed money), they are also a perfect excuse for the government to raise taxes, and MSN Money reports that taxes are likely to rise for both companies and individuals in the years to come.
Mass bankruptcies, empty planes, cautious consumers and an increase in the corporate tax rate to as high as 29% were part of a vision Fink sketched out on a call this week. The message from the leader of the world’s biggest asset manager contrasts with the ebullient tones of a stock market that has snapped back from recent lows.
Even among Wall Street luminaries, Fink speaks with particular clout. He has been advising President Donald Trump on how to navigate the effects of the coronavirus pandemic. And BlackRock is playing a key role in the Federal Reserve’s efforts to stabilize markets, helping the central bank buy billions of dollars in assets.
Fink said on the call with clients of a wealth advisory firm that bankers have told him they expect a cascade of bankruptcies to hit the American economy, and he wondered if the Fed needed to do more to provide support, according to a person with knowledge of the remarks.
A BlackRock spokesman declined to comment.
Even as the U.S. is plunged into deepening economic gloom, it will have to raise taxes to pay for emergency efforts to rescue sectors grappling with a difficult recovery, he warned on the call.
Among his predictions: lifting the 21% corporate rate signed into law as part of 2017’s tax overhaul to about 28% or 29% next year, according to the person. Fink also said he sees tax rates for individuals going up. (source)
It is not possible to pay rising taxes with no or significantly reduced income. It is a great way to impoverish people further and to push them into worsening forms of misery.
What we are seeing now is not a “Great Depression”, but rather a “Greater Depression”, with the one of the 1930s being the “Lesser Depression” as if trends continue this will certainly be the case.
America seems to be going through a fundamental transformation right now, where in the future, it is likely that she may look like Russia, with a minority ultra-wealthy class, and then a majority of people who are essentially destitute.