More On: Biden
The president's tax records show that Joe and Jill Biden made more than $500,000 last year and gave money to a pro-police charity
Through the U.S. Ambassador, Hunter Biden and his associates tried to get money from the Irish in 2011
Incompetence in Washington is directly responsible for high inflation.
Inflation figures released this week were the highest in nearly four decades. Inflation was not caused by "greedy" oilmen who put their money on the line and worked tirelessly to generate more energy at cheaper rates for everyone. Farmers, like oilmen, risk their wealth, confront unpredictable weather, pests, and environmental nags in order to create the greatest and most plentiful crops on the planet. Incompetent and politically motivated government officials and bureaucrats who, by overregulation and taxes, push up the cost of almost everything, then try to conceal their misdeeds by printing more money than the rise in goods and services would justify are the root of inflation.
Looking at what the Federal Reserve, Congress, and the Biden Administration are doing, a commercial builder may expect inflation to continue. With the prospect of higher inflation and banks' historically low borrowing rates, it may be prudent to stock up on building supplies such as marble floor tiles, rare woods, aluminum sheet, tubes, rods, and other such items to fill up spare warehouse space. For financial reasons, the builder may choose to pay cash for all supplies, which would be perfectly lawful.
Others who are not in the construction industry or who do not have warehouse space may anticipate an increase in the price of building supplies and wish to acquire goods (real assets) as a hedge against inflation. "I will buy aluminum and marble flooring for you and others, then digitize it so it can be sold in small affordable pieces to make it more liquid, store it for you at a very low rate, and charge you low transaction fees for my services," an entrepreneur might say to people trying to protect themselves from inflation. "Sign me up," said those who believe the overall expenses of these services will be less than predicted inflation.
But not so fast, I'm afraid. According to government officials, the planned business might make it simpler for people who want to "launder money" or avoid capital gains taxes. As a result, they will expect a great deal more information from both buyers and sellers. The information disclosure requirements might be time-consuming, expensive, and invading of privacy. Even yet, few government officials conduct thorough cost-benefit evaluations of their restrictions, and they frequently overlook the reality that the regulations may be liberty-defying, as if the Constitution does not exist.
There is a lot of financial and commercial innovation going on right now that improves services, allows for better resource allocation, and lowers prices. Nonetheless, despite significant public advantages, government regulators sometimes inhibit or even restrict innovation for fear of losing their influence. The House Ways and Means Committee's Oversight Subcommittee convened a hearing last week titled "The Pandora Papers and Hidden Wealth."
The Pandora Papers are a collection of 12 million leaked papers that reveal how the global elite avoid taxes and other issues. To address the issue, Congress is exploring new rules and regulations. The US government and other countries have had codified rules and regulations against money laundering and tax evasion for at least half a century. When periodic scandals emerge, however, they inevitably include the names of several politicians from throughout the world who have railed and raged against the very tax fraud they are involved in.
David Burton of the Heritage Foundation, a highly brilliant, capable, and rational lawyer and economist, was one of those who testified. "In a free society, people and companies enjoy a large private realm devoid of government participation, monitoring, and control," Mr. Burton opened his evidence. The financial regulatory structure in the United States is becoming more incompatible with these objectives. The existing regulatory framework is excessively complicated and onerous, and its haphazard character has hampered attempts to prevent terrorism, enforce laws, and collect taxes. Furthermore, the current framework appears to be extremely inefficient."
The need for increased openness regarding "beneficial ownership," or who truly owns what, is a current focus of global financial regulators, notwithstanding the term's ambiguity. Despite the fact that the major burden falls on businesses with less than 20 workers or gross sales of less than $5 million, authorities have increased their demands for beneficial owner reporting. "These are the enterprises most suffering from the disastrous, destructive impacts of lockdowns and other government initiatives directed straight at small businesses," Mr. Burton says again. These are the businesses that support our community."
The rising complexity of the tax system, as well as the reporting obligations that come with it, undermines the rule of law and civil society. According to the Tax Foundation, the cost of tax compliance exceeds $400 billion. Even though there is little proof that they have decreased the nebulous crime of money laundering, the never-ending anti-money laundering rules are likely to cost another $8-10 billion. Overregulation, on the other hand, is destroying or suffocating small enterprises at an alarming rate. An economy withering away, along with employment and wealth, without a developing and active new small company sector.