Federal Borrowing Crosses The Rubicon

By Clint Siegner – Re-Blogged From Gold Eagle

A year ago, Republicans in control of Congress suspended the cap on federal borrowing. The limit was automatically re-imposed on March 1st. Politicians now have a few months to hammer out legislation to raise the cap as the Treasury employs “extraordinary measures” to fend off default.

The federal deficit is mushrooming once again. The 2017 tax cuts have taken a bite out of receipts at the IRS and economic growth has not met expectations.

This year’s borrowing to fill the gap between government tax revenue and expenditures may reach a trillion dollars for the first time since 2012.

If Washington politicians follow the usual script, we can expect Republicans to posture as fiscal conservatives and then relent either just before or just after a federal shutdown.

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Maine Becomes The Most Recent Blue State To Reject A Carbon Tax

By Patrick Gleason – Re-Blogged From Forbes

AUGUSTA, Maine — The beginning of March brings bad news for carbon tax supporters, who have been successful in getting legislation to impose the regressive tax introduced at the federal and state levels, but not in getting it enacted, not even in left-leaning, Democratic-run states that should be most inclined to welcome this policy.

A February 28 Maine House Committee on Energy Utilities and Technology hearing on legislation that would impose the nation’s first statewide carbon tax ended with Representative Deane Rykerson (D-Kittery), the legislator sponsoring the bill, announcing that he will pull his proposal and will instead push for a “Carbon Pricing Study Group” that will explore the topic and issue recommendations at a later date. The committee subsequently voted on March 7 against reporting Rykerson’s carbon tax bill out of committee.

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US Budget Deficit And Interest

By David Haggith – Re-Blogged From Gold Eagle

How to Calculate Pi by Throwing Frozen Hot Dogs

Re-Blogged From Wiki-How

Happy ‘PI’ Day, which is march 14th. (That’s 3/14 or 3.14)

Throwing a pie in someone’s face is good. Throwing food to discover pi is better. Believe it or not, of all the countless ways to approximate the most prolific irrational number in the universe, there are none quite as interesting or as surprisingly satisfying as throwing perfectly good food around your kitchen. In fewer steps than it takes to circumscribe your house in a circle of baguettes, you, too, can easily add a slice of pi into your dinner menu tonight. The best part is… it really works!

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High-Tax States Make It Hard for Rich to Leave

By Bloomberg – Re-Blogged From Newsmax

This tax season, many wealthy Americans are getting an expensive jolt.

The Republican tax overhaul signed by President Donald Trump more than a year ago provides plenty of perks for the rich. But not all well-off folks are treated alike under the new law. A controversial provision that helps pay for huge corporate tax cuts punishes residents of states with higher income taxes—most of which, but not all, lean Democratic.

By setting a $10,000 cap on how much Americans can deduct in state and local taxes, or SALT for short, Washington created a pricey problem for the privileged in some parts of the country. Now that the first tax season under the overhaul is here, that reality is hitting home—and the thought of moving to a low-tax state may suddenly look more attractive.

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This Is New: Governments Ramp Up Borrowing IN ANTICIPATION Of A Slowdown

By John Rubino – Re-Blogged From Dollar Collapse

The business cycle has its stages, and they’re usually both predictable and logical. For example, governments tend to generate a lot of tax revenue late in an expansion as more people get jobs and start paying income taxes and rising stock prices generate big capital gains. Meanwhile, less has to be spent on social safety net programs because everyone is working. Combine higher tax revenues and lower spending and you get shrinking deficits.

But not this time. Government borrowing soared around the world in 2018, even as economic growth, employment and stock prices peaked. Why the change? Well, apparently governments have decided – for the first time since the inception of the business cycle – to preemptively attack the next recession.

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Elizabeth Warren Mulling Tax on Wealthy Americans

By Jason Devaney – Re-Blogged From Newsmax

Sen. Elizabeth Warren, D-Mass., appears to be borrowing an idea from a new member of the opposite chamber by considering a wealth tax on the richest Americans.

According to The Washington Post, economists working with Warren — who recently formed an exploratory committee to look into running for president in next year’s election — are working on the plan with her.

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