|Unleash Prosperity Hotline|
|1) Americans Are High-Tailing it Out of Cities with Riots|
Let us hope and pray that after the verdict is announced in the George Floyd trial, that violence doesn’t erupt in cities around the country. Some new evidence shows that Americans are now fleeing cities that were hobbled by racial riots, arson, and looting this past summer and fall, thus hurting minorities the most.
The chart below presents the latest data on areas of the country where people are buying homes and where people are selling them.
The big red splotches show the areas with big property sell offs. Let’s see, we have New York, Chicago, Milwaukee, Minneapolis, Los Angeles, Washington DC, Portland, and Seattle – to name the biggest losers. What do they all have in common? Oh yes, riots, and an incapacity of the Democratic Mayors and governors to deter violence.
We have no beef with peaceful protests against abusive police conduct, but the victims of the Black Lives Matter violence and their idiotic calls for “defunding the police,” have been the immigrants, minorities, and poor with homes, apartments, or businesses in these inner-city neighborhoods.
The villains here are not just the thugs and criminals that ransacked minority neighborhoods, but the leftist political class who cheered on the “mostly peaceful” riots and failed to keep their citizens and their property safe. Special mention to Kamala Harris who still refers to the protesters as “social justice warriors.”
|2) Blue State Democrats Demand Tax Cuts for the Rich|
President Biden’s White House is preparing the mother of all tax increases, but it’s also coming under pressure to cut taxes on its rich liberal supporters in Blue states.
Four liberal Democratic House members say they won’t support any Biden tax proposal unless it repeals the cap on state and local taxes. Reps. Bill Pascrell, Josh Gottheimer, Mikie Sherrill, and Tom Suozzi say the caps reduced the amount taxpayers claimed for deductions for state and local taxes (SALT) by $240 billion in 2019.
They neglect to mention two things. First, a huge share of all of these deductions were on tax returns of residents in states like California, New Jersey, New York, and Massachusetts. Bringing that deduction back would simply shift the overall tax burden from residents of these blue states to residents of low tax red states like Florida and Texas.
Second, more than half of the benefits of this new tax loophole would go to the millionaires and billionaires who still live in states like New York and California. Gee, we thought Democrats wanted to soak the rich, now they want to pass the biggest tax cut for millionaires and billionaires in American history.
Biden supports restoring the SALT deduction because many liberal Senators – including Majority Leader Chuck Schumer – know it is prompting many of their well-off constituents to leave Blue states for more tax-friendly climes.
The solution to this problem is for Calif. And New York to cut their tax rates, but as we mentioned last week, both these states want to RAISE their income tax rates, then they pout that rich people are leaving.
By the way, here is what the liberal Brookings Institution thinks of this idea:
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