The Democrats’ War on Economics: Tax Explosions and Spending Sprees

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Show Summary: A radical shift is underway as democrats shove America away from reality-based economics towards an economy where normal monetary policy is abandoned, taxes are imposed on the “undesirables”, and public monies are used to reward themselves and their allies. Think it’s not possible? It’s already underway. Find out what’s coming.

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Original Air Dates: Apr 10th & 11th, 2021 | Carl Wilson & Jonathan Williams

This Week: When we were kids it was exciting to be handed a quarter thinking about how and where to spend it. And we learned that a quarter was wonderful, but a dollar was even better. Except maybe those lessons of having and handling money are being lost in the age of debit cards, or electronic purchases.  Because the tangible feel of money and its worth is somehow getting lost. A coin or a dollar in the hand reminds a child of its temporary nature, and once spent it’s gone—versus money “out there” in the cloud somewhere, where there’s always more of it.

Basic economics are under attack.

Non-Reality-Based Economics

As politicians supposedly grapple with debt, it is somehow made mystical in the world of zeros and ones with digital accounts. Not surprising when computer modeling and predictions take over reality. But is there a point of reckoning that will be no longer be possible to bury or ignore?  Basic economic principles would say yes.

This week, we work to uncover those economic principles that so many Left-leaning politicians wish us not to examine.  (Especially in an AOC world where if the computer doesn’t say it, then it’s not so.) It is becoming painfully obvious that those in charge of America’s economics, and raising and spending the public’s money have no grounding in basic economics or business.

Central Assessment

We start off with Carl Wilson, former Oregon state representative, and owner of KAJO, out of Grants Pass, that airs I Spy.  We discuss the new threat to local radio stations as Oregon decided to shift them into a new taxing scheme called “central assessment.”

To date, Oregon is the only state imposing this new taxing methodology on local radio stations. Instead of local counties determining their taxes, now a state central system will determine what their assessed value is.  This potentially opens the door to a punitive system that large communications operations might be able to absorb, while hurting the mom’s and pop’s segments.  Something far left democrats seem to do all too often while making policy decisions.

And don’t miss who is getting special carve-outs. Is this a backdoor way to collapse conservatives’ dominance in talk radio?

Economics 101? Or No Room for Reality?

Then we talk to Jonathan Williams, Chief Economist for American Legislative Exchange Council, or ALEC.  He brings us up to date on the spending that Biden’s administration is zeroed in on.  We discuss what is happening with the dollar and a possible move by China to do more harm to America’s economy.

We’re only a few months into the Biden administration. But there is already a worrisome economic forecast on the horizon possibly coming our way in the next few years. We are spending trillions upon trillions, with more than $6 trillion planned just in the first 4 months. Which doesn’t even cover the “normal” government spending of $4.5 trillion per year.

Where is this coming from?

It can only come from wishful, magic money. Where it never has to be paid back.

Economics + Monetary Policy = Coming Crash?

In economics, just like in life, you ignore reality at your peril. See the links section below for some concerning videos that are warning about a potential and massive crash. Which, they claim, is all but certain. One of the most concerning is from Harry Dent. Harry Dent warns that globally, financial assets (stocks, bonds, etc.) are massively over-valued: $520 trillion which is 6.2 times global GDP of ~84 trillion. He says it normally is only about 2 times.

With so many warnings from well-respected economists and analyses, maybe it’s time to protect yourself.

The I Spy Radio Show Podcast Version

Trapped under a heavy object? Missed the show? Don’t worry—catch the podcast version. I Spy Radio is now available on your favorite platform, or you can grab it right here. See the full list of podcast options.

Links & Info

Carl Wilson (Segments 1–3)

• Basic definition of central assessment: “The state assesses the property value of a business, rather than a local county assessing the value. The difference is the central assessment uses the company’s entire, statewide worth (even if they’re not a statewide company), including all property, equipment, brand value, and more. Even equipment decades old is lumped in—at original retail costs—rather than its current depreciated value.
• Central assessment: A great writeup from Eric J. Kodesch: Oregon Supreme Court Finalizes DOR’s Complete Victory in Central Assessment Dispute (Journal of Multistate Taxation and Incentives, Volume 29, Number 3, June 2019)
  • This is the kicker: “the Oregon Supreme Court agreed with the Department’s position that property is new property if it is “newly added to an account on the assessment rolls.” In other words, in addition to property purchased or constructed by the taxpayer, new property includes the decision by the Department to centrally assess property.
  • Further, the new property consisted of all of the property moved to the new account, and not just the property not previously subject to tax, such as the intangible property.”
    • In other words, its new if we say it’s new
  • This is rather alarming. It’s taxable if the govt decides it’s taxable and no pesky law designed to protect from the government can protect you
• Oregon Supreme Court Provides Definition of “Data Transmission Services” for Central Assessment Purposes (Stoel Rives, LLP, Oct 2, 2014)
  • “As in most states, “central assessment” (or “state assessment”) generally means that the value of taxable property is determined “centrally” by the state’s Department of Revenue rather than by the local county assessor.
  • In Oregon, however, a major additional consequence of central assessment is that intangible property of a centrally assessed business is subject to tax, while the intangible property of a locally assessed business is not.
  • Furthermore, central assessment is based on the value of the taxable “unit” of property, as allocated and apportioned to Oregon taxing jurisdictions by formula. For these reasons, central assessment can, at least in theory, use the entire worldwide brand value of a business, including goodwill, as its starting point, as well as all of its real and tangible personal property.”

The bill to exempt radio stations from this onerous tax scheme is HB2331

Jonathan Williams (Segments 4–6)

• Jonathan Williams’ organization is American Legislative Exchange Council (ALEC). He is also the co-author of Rich States, Poor States and annual assessment of the states’ economic outlook and ranking of their competitiveness
• Radical New Rules for Post-America (Victor Davis Hanson in American Greatness, Mar 31, 2021)
• VIDEO: Is the Fed hiding something? Why weekly money supply data just got discontinued (Kitco News, via YouTube, Apr 6, 2021)
  • The Federal Reserve recently discontinued updating the M1 and M2 weekly money supply series and is instead updating the series monthly.
• How Stupid are American Voters — Very!? (Jewish World Review, Apr 1, 2021)
• Stephen Moore: Biden Spending on ‘Outrageous Boondoggles’ (NewsMax, Apr 4, 2021)
• Republicans slam ‘hypocritical’ Biden for funneling $13 million through tax loopholes (Freedom First Network, Apr 5, 2021)

Additional Economics and Financial Links

• Worrisome: Harry Dent: Stock Market 40% Crash in April, Nothing Can Save You (YouTube, Feb 8, 2021). “A 40% correction is coming for the stock market, this according to Harry Dent, New York Times best-selling author of Zero Hour. ‘The Fed is losing absolute control’.”
• Monetary Policy in Action — Prices of Everything Is Going UP – Value of Everything Is Going DOWN (Peter Schiff on Tucker Carlson, Apr 5, 2021)
• Retail Apocalypse: $100 Billion In Losses Trigger New Wave Of Bankruptcies & Mass Store Closures (Epic Economist, YouTube, Apr 7, 2021)
• About that “hot” housing market. It may no be what it appears… Krystal Ball: The Next Housing CRISIS Is Here And The Villains Are Exactly Who You’d Expect (The Hill, Apr 6, 2021)
• Peter Schiff: People Don’t Know What’s Coming (Mar 27th, 2021)
• Peter Schiff: Fed is trapped. It will either Bankrupt the Government or the American People (Link)
• Luxury Stores Default ($200M in Rent) Along Manhattan’s 5th Ave (John Williams, YouTube, Apr 7, 2021)
• Foreclosures BANNED until 2022?! (John Williams, YouTube, Apr 7, 2021)
• Bank Meltdown Is Here! Commercial & Household Debt Lead To Worst Bank Apocalypse In All U.S. History (Epic Economist, Apr 2, 2021)