Dow dropped 160, decliners over advancers 2-1 & NAZ pulled back 143. The MLP index inched up to 181 & the REIT index rose 1+ to the 179s. Junk bond funds crawled higher. & Treasuries were being purchased. Oil rose 1 to the 69s & gold declined 11 to 1787.
AMJ (Alerian MLP index tracking fund)
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Wealthy Americans are bracing for steeper taxes as soon as this year as Dems push forward with a massive, multitrillion-dollar spending bill. House committees are currently crafting a $3.5T budget plan that will serve as the blueprint for the Pres's economic agenda that seeks to dramatically boost federal investment in education, child care & paid family leave. Formal legislation could be released as soon as this week for the tax & spending plan, which has been billed by the White House as a "once-in-a-generation investment" in the nation's future. Dems plan to pass the measure using the procedural tool known as reconciliation, which allows them to bypass a Senate filibuster by GOP lawmakers. However, given their extremely slim margins in both the House & Senate, Dems will need to ensure virtually every caucus member votes in lockstep to ensure the bill's passage. A key part of Dems' tax & spending plan involves raising levies on the top sliver of US households, including restoring the top individual income rate to 39.6%. That new top rate – which reverses part of the Trump-era Tax Cuts & Jobs Act – would apply to single individuals with taxable income of more than $452K & married couples with joint taxable income of $509K, according to the $6T budget proposal released earlier this year. The current top marginal rate of 37% is currently paid by singles earning $523K or more & couples making $628K or more. Assuming the proposal becomes law – which hinges on a deeply divided Congress – the new tax rate would start to apply during the 2022 tax year. Under the American Families Plan – which would serve as the basis for Dems' $3.5T reconciliation bill – the top capital gains tax would climb to 39.6% from 20% for Americans earning more than $1M (about 500K households). The pres plans to keep an existing Medicare surcharge in place, bringing federal tax rates as high as 43.4% for some Americans. Taxes on long-term capital gains currently range from 0% to 20%, depending on a person's income. Taxes on long-term capital gains – generally classified as an asset that's held for more than one year – currently are 0%-20%, depending on a person's income. Wealthier investors are also subject to an additional 3.8% tax on long- & short-term capital gains that's used to fund ObamaCare. Short-term capital gains on assets sold within a year are typically taxed as ordinary income.
Democrats pushing slew of tax hikes to fund massive spending plan
The number of jobs openings in the US hit a record high for a 5th straight month in
Jul as employers continued to have difficulty finding workers. The
total number of job openings rose by 749K to a seasonally adjusted
10.9M at the end of Jul, according to the Labor Dept's
Job Opening & Labor Turnover Survey (JOLTS). The number of job
openings in Jun was revised higher by 112K to 10.2M. The forecast was expecting 10M available jobs.
Job openings hit 10.9M, fifth straight record high
Sen Joe Manchin has reportedly told the White House & colleagues that he plans on supporting as little as $1T of Pres Biden's $3.5T rebuilding plan, which could be a damaging blow to the ‘Build Back Better’ agenda. Manchin—who is a pivotal vote in the divided Senate—has spoken out before about the massive spending bill. Reps have called the package a progressive's dream & said the White House should be focused on the crisis in Afghanistan. "Hit the pause button," Manchin said last week at the West Virginia Chamber of Commerce. "Let’s sit back. Let’s see what happens. We have so much on our plate. We really have an awful lot. I think that would be the prudent, wise thing to do." The House voted last month 220-212 on the budget blueprint. Biden called the vote a "step closer to truly investing in the American people."
Manchin privately tells WH he’ll back $1T of Biden’s budget resolution: report
It's difficult to understand the rush to slop & spend some much money. The plans are only being written now. To rush this thru, those guys are having to do all nighters. Huh??? These are the same DC people who managed the US surrender in Afghanistan. Meanwhile the JOLTS report is an encouraging sign about the economic recovery, even if the growth will slow from levels that can not be replicated. It's sad that those same guys working on more spending don't know or care that the debt ceiling must be raised & done quickly!!
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