Yet another day to tax reduction and its due as usual to the obstructionist Democratic Party as they forced, at my count, 5 Motions to Recommit the Bill back to the Finance Committee. The Dems lost every vote as expected but if successful, the bill would’ve traveled back to the finance Committee for additional hearings and votes before the bill could again see a vote on the Senate Floor. At 5 Motions to Recommit is a long time in the life of a Slooow moving Senate. A viewer would become an expert in classical music before they see the resolution in 5 rounds of votes. So day 2 is here as again the Dems suffer the Yellen effects, they took the money and won’t give it back. How did we arrive at this day.
The Income Tax was temporarily imposed by Republican Lincoln to assist in Union, mostly the South, rebuild after the Civil War. After rebuild, the Income Tax was rescinded as promised by Lincoln yet it was ruled by the Supreme Court as Unconstitutional in 1894 and long after Lincoln’s death. Republican McKinley was assassinated in the 1890’s at a time to not only American prosperity but the anti American Progressive movement was in full swing. Enter the next enemy of America , Republican Teddy Roosevelt.
Roosevelt was busy during his term to create Government agencies, finance the Spanish American War and stop Capitalism’s progression. He endorsed and faught hard for an estate tax, inheritance and Income Tax. Republican Taft’s succession of Roosevelt passed the 1% Corporate Tax and Taft Endorsed the 16 Amendment to impose an income Tax as a means to beat the Supreme Court’s purview.
As Roosevelt and Taft split conservative and progressive Republicans, Democrat Wilson sealed the Income tax fate by passage of the 16th Amendment. The key was Wilson’s lowering of Import Duties from 40% to 29%. Sounds familiar ? as the question to make up for lost revenue to Import Duties, 1% was imposed as the first Income tax, More familiar sounding debates today is 1% was imposed on incomes over $3,000 and $4,000 for married couples. The Bureau of Internal Revenue, now the IRS was created to collect the tax on who would’ve guessed the famous 1040 form. Then, the 1040 and other Tax forms were considered complicated.
As Wilson lost Tax revenue to Duty Imposition, then began the massive rise over years in income and other taxes. Government grew exponentially as a result but the rise never stopped and continues to this day.
The conservative Republicans under Harding, Coolidge and Hoover lowered income taxes in the 1920’s, Add Reagan and Trump, only 5 presidents since Lincoln lowered taxes. Trump is fighting against not only a 100 year tax rise tradition but Dems as well as the Teddy Roosevelt Republicans are against his lower tax proposals.
Debates as in tax the wealthy and government deficits remains a 100 year tradition.
How many government agencies exist in the Federal government to finance tax increases? Well 200 to 400 depending on who is believed .How many outside government groups are funded by government revenue. Good question.
EUR/USD. Overall break points now 1.1803, 1.1737 and 1.2023. Lower for EUR means break at 1.1915 to target 1.1893, 1.1876 and 1.1861. Higher must break 1.1928 to target 1.1954 and 1.1981. EUR leans to overbought but seen only in longer term averages.
GBP/USD. Must break 1.3542 to target 1.3497, 1.3482 and 1.3461. Above must break 1.3538 to target 1.3450’s. GBP is severely overbought and 2 day recommendation remains sell rallies and not take 1 pip long.
USD/JPY overall break points are located at 111.95 and 111.70. Lowe means breaks at 112.47 to target 112.31, 112.16 and 112.09. Higher must break 112.70. Today’s JPY brick wall is located at 113.17 and `113.20.