Larry Fink Terrified That Corporations May Be Asked To Pay Higher Taxes After Virus
Larry Fink is terrified - that corporate tax rates will go up.
According to one person's account of a recent call "with clients of a wealth advisory", the BlackRock boss described a grim future for America, as the country attempts to navigate an arduous path back from economic oblivion.
Among the poltergeist haunting Fink's nightmares: Corporate tax rates as high as 29% or, put differently, corporate tax rates that are still less than they were prior to the Trump tax cuts.
(Goldman)
"Even
Taxes need to go up- the beneficiaries of the recent generosity are the ones that need to pay up for sure- upper income and corporations. But that won’t raise all that much money. The middle class used to be the cash cow, because of numbers. These days that cohort has shrunk greatly. A VAT which would be structured to be at least mildly progressive would be a very good way to go. It could help partially fund social security, medicare and go towards universal health care (notice not medicare for all) based on ability to pay. Universal care could be structured so that the bottom 3/4 of population gets taken care of at no or very little out of pocket. The upper 1/4 could pay based on ability to pay. Medicare could be left intact, but we could roll this out for everyone else. If we were able to bend back the cost curve on medical care it would help pay the freight. Remember most people pay for health care anyway- the VAT would just be a shift in the method of payment for many. It is abundantly clear that the safety net for a large part of America has been destroyed since 1980 and needs to get rebuilt. A VAT could also be refundable at the border, so that it could help US exports and still comply with WTO rules.
‘It is abundantly clear that the safety net for a large part of America has been destroyed since 1980″ — a/k/a the Reagan Revolution.
Enough already. It’s time to bring the profligate corporations back to being a responsible part of our economy. They don’t make all that money without the people you propose screwing. I’m already going up two brackets because my wife died and the damn feds take 30% of my SS, which was my money, for taxes and Medicare, I’ve had it.
I patiently wait in cash to see what the post-apocalypse world looks like
I have given that posture serious thought lately. Any second thoughts?
Mr. Lucky – No second thoughts. I have been in the stock market for 35 years and have had no problem staying in the market when the economy and the equity markets were still tethered, even though the PE ratios were stretched for various reasons – such as during 2018 and 2019 (QE). However, because the economy and the stock markets are completely disconnected, as I think they are now – I will wait for more clarity on the economy.
Most of the money I have made in the stock market over the years is from buying great companies that got “beat up” for invalid (IMHO) or short term reasons and these types of situations will still be available going forward – so if I miss this entire run up, I will find another way to invest. The downside risk is way too much right now.
You and me samo-o.
You’re darned if you do and darned if you don’t.
Oh the humanity! Thousands dead and millions unemployed but Fink is haunted by the long shot possibility of a minor increase in corporate taxes. If the US decides it needs to tax to fund further stimulus, which it does not, tax the bastards, most of the wealth sits in corporate balance sheets and the brokerage accounts of the top1%, it is the logical place to tax and raise revenues. Fink, take your taxes like a man you douchbag!