U.S. House Passes 90 Percent Tax on Employee Bonuses

[karim0028]

http://www.bloomberg.com/apps/news?p...WKw&refer=home

March 19 (Bloomberg) -- The U.S. House, moving swiftly in response to public outrage, voted to impose a 90 percent tax on employee bonuses at American International Group Inc. and other companies getting at least $5 billion in taxpayer bailout funds.

[FRED]

Re: U.S. House Passes 90 Percent Tax on Employee Bonuses

http://www.bloomberg.com/apps/news?p...WKw&refer=home

March 19 (Bloomberg) -- The U.S. House, moving swiftly in response to public outrage, voted to impose a 90 percent tax on employee bonuses at American International Group Inc. and other companies getting at least $5 billion in taxpayer bailout funds.

This is the reason we are not "all in" in gold. If it becomes unpopular with the people as a symbol of "hoarding" versus "putting money into the economy," for example, politicians will respond. A 90% sales tax will do it. This is that principle at work.

[LargoWinch]

Re: U.S. House Passes 90 Percent Tax on Employee Bonuses

This is the reason we are not "all in" in gold. If it becomes unpopular with the people as a symbol of "hoarding" versus "putting money into the economy," for example, politicians will respond. A 90% sales tax will do it. This is that principle at work.

I could not agree more Ed.

However: what about Silver, Platinum, Palladium, Natural Gas, Grains and especially Crude Oil?

Surely, the government cannot tax all these inflation edges at 90% or at least, do so at the same time?

[opticsguy]

Re: U.S. House Passes 90 Percent Tax on Employee Bonuses

If I buy gold, does my money exit the economy any more than if I had bought a dozen plasmas? Kitco, Ampex, etc., don't take my cash and stick it under their mattress, they put it in a bank somewhere, and the money I spent on gold is still "in" the economy.

[aaron]

Re: U.S. House Passes 90 Percent Tax on Employee Bonuses

If you do that, how are you going to buy treasuries?


They have taken my savings, my house, 60% of my salary...
I will leave this country before they take my gold. It is all I have left.

[deflateIT]

Re: U.S. House Passes 90 Percent Tax on Employee Bonuses

FRED: Do you think If they will impose a 90% tax on Gold it will move to black market exchange?

[Spartacus]

FINALLY they bit the hand that feeds them - NOW

I hope your politicians

wake up,
grow up,
get a spine and a pair (or 2 - the more the better for testosterone production)

and tax the hedgies and PE guys

[CanuckinTX]

Re: U.S. House Passes 90 Percent Tax on Employee Bonuses

I could not agree more Ed.

However: what about Silver, Platinum, Palladium, Natural Gas, Grains and especially Crude Oil?

Surely, the government cannot tax all these inflation edges at 90% or at least, do so at the same time?

The case of whiskey - don't forget about that too! It's looking like the best option more and more. Can't wait until iTulip says 5% allocation to whiskey of your choice.

[tastymannatees]

Re: U.S. House Passes 90 Percent Tax on Employee Bonuses

When government tax receipts drop 75% don't worry they will be taxing wherever they can find the money. Will not matter where you have it.

Hell, Rangel today was talking about taxing last years bonuses on money that was received before the whole mess came to a head.... Chile or NZ is starting to look good to me.


It's one thing to lose money in the market or from a Maddoff another to have the government come in and say what you own or have left is mine.... things deteriorate and 2010 will look bad for any incumbent congressman. Revolution at the ballot box? Necessity will dictate future events just like you can not stop a credit bubble from collapsing, you can not tax yourself into paralysis for long.

I expect some back and forth on the taxes but I will just sit tight and wait for an opportune time to sell.

[hayekvindicated]

Re: U.S. House Passes 90 Percent Tax on Employee Bonuses

Not buying gold for that reason makes no sense to me. There is nothing to stop the politicians from imposing a 90 percent tax on a whole range of natural resources - if anything, there is a higher risk of being taxed if you own an essential commodity like oil. I mean let's face it, gold isn't really necessary for survival is it? But oil and food both are.

With gold, the best solution remains to hold it physically off shore. Hoarding on-shore is not a good idea in my view (especially given the nature of the political problems confronting America) - not because of the risk of confiscation but because one won't be able to liquidate in a country where other valuable assets can be bought by liquidating gold.

The "solutions" for Americans looking to preserve their wealth have to be: (1) hold gold offshore; (2) open a foreign currency bank account (any of the solid Asian currencies will do); (3) keep yourself ready to emigrate when things get bad - I mean why stay in the middle of it when the country turns into a banana republic?

What are the alternatives for emigration? My favourite is Singapore but its too small. Australia and Canada are both resource rich nations that may continue to do deals with China and will, therefore, have some money at their disposal. They are also English speaking and one is right across the border!

[opticsguy]

Re: U.S. House Passes 90 Percent Tax on Employee Bonuses

I would think having the citizens buy gold would be better for TPTB, that way, when you confiscate it, it has some value, rather than an old TV, a house with plumbing ripped out, used cars, etc.

Remember, gold is not money (at this time). For "them" to come to your house and take it would be the same as them coming to take your jewelry, your car, your food, or any other possession. It would require the shredding of what's left of the constitution, but not impossible.

[opticsguy]

Re: U.S. House Passes 90 Percent Tax on Employee Bonuses

The window is closing quickly for getting serious wealth out of the US. If peak oil is real, North America will be one of the better places to be in the long term.

I'm going to take one oz. worth of gold and buy vodka and whisky with it. Maybe some cigars. Watch Dr. Zhivago if you haven't already.

[Spartacus]

Re: U.S. House Passes 90 Percent Tax on Employee Bonuses

I don't know about Australia but if I were a US citizen I would NOT put any faith in the current administration protecting from the IRS any privacy on your assets in Canada.

[BiscayneSunrise]

Re: U.S. House Passes 90 Percent Tax on Employee Bonuses

I could not agree more Ed.

However: what about Silver, Platinum, Palladium, Natural Gas, Grains and especially Crude Oil?

Surely, the government cannot tax all these inflation edges at 90% or at least, do so at the same time?

"First, they came for the corporate executives....."

[cjppjc]

Re: FINALLY they bit the hand that feeds them - NOW

I hope your politicians

wake up,
grow up,
get a spine and a pair (or 2 - the more the better for testosterone production)

and tax the hedgies and PE guys

I beg to differ. This was one of the legislative branchs greatest piece of work. They should all be proud of themselves. I know it took a lot of courage to vote this through. I hope they rest well tonight. With leadership the likes of Dodd, Rangle, Schumer, and Frank. I feel confindent that the country is now moving in the right direction. Tomorrow I plan to finally throw out my Ron Paul yard sign.