The status-quo block of Republicans and Democrats in Congress passed the Budget Control Act of 2015, otherwise known as Budget Scam 2015.
This latest update of their Annual Fraud on the Taxpayers Program again puts the screws on the investors while maintaining soaring governmental spending level fraud.
They tell us that raising the debt ceiling to over $20 trillion is necessary so there is no disruption of government operations which might imperil the United States' credit rating and reliability to service its astronomical level of debt.
In 2008, the debt of the United States was $10 trillion. It was made necessary by the needs of Congress and the administration to reward each political party's campaign contributors and special interest voting groups, to extend governmental power and control and to get more campaign contributions.
The consequences of this exercise to keep government largesse flowing without hindrance for the past 7 years, the United States find itself liable for $20 trillion.
What a hoax.
Out of control spending on governmental programs nearly all of which have failed, are failing, or when a new program is established, then it will fail.
An important ingredient in this scheme is the pretense that government will make sure those people not paying their fair share of taxes will be terrorized into paying up.
Congress and the administration justify sky-rocketing spending with the allusion that certain taxpayers will pay more tax. The estimated future increase in projected tax revenues validates borrowing more money and spending it right now.
There seems two questions that must be answered.
Just who will be paying more taxes? How are they going to be coerced into paying?
The only ones with any income that doesn't come from the government are investors, business owners, and workers.
Workers have been screwed over already and the politicos in Washington, D.C., fear that any further screwing over of labor may cause a ballot box revolution.
Business owners are not expanding and not hiring. There is no more blood to squeeze out of that stone.
That leaves all those unorganized individual investors who really have little political clout.
The bi-partisan budget uses the old slight-of-hand trick of diverting attention from the fact that taxes are going up on investors by focusing on the facade of merely increasing tax compliance by auditing investment partnerships and hedge funds.
The government takes the view that enhanced compliance on investors is unconnected to their prior announcements calling for tax simplification and ending taxpayer abuse.
This budget act has a new twist. This time the status-quo establishment politicians made this budget good for two years.
I'm not sure yet which way I take this. It could be just troublesome or otherwise it is downright malevolent.
Given this is an action by Congress and the administration, the later is likely most appropriate.
Budget Scam 2015 has little to do with any actual budgeting. But it has onerous tax provisions which will hit investors hard.
Investors should remember this when they get into the voting booth.
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