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Build Back Better May Not Be Dead Just Yet
Equities ^
| 12/28/2021
Posted on 12/28/2021 8:41:07 PM PST by SeekAndFind
Build Back Better May Not Be Dead Just Yet
On Sunday, December 19, West Virginia Senator Joe Manchin dropped a bomb on the Biden administration when he said he would not support the $1.9 trillion Build Back Better legislation. With a 50-50 split in the Senate, a no vote from a Democrat was a death knell for the pending program. The senator cited rising inflation as a reason why the US cannot afford to spend another almost $2 trillion after the cost of the legislation would not be covered by tax hikes.
While Republicans cheered, the move angered many Democrats as the legislation is the cornerstone of the President’s campaign pledges. As we move forward into 2022, the Build Back Better legislation has suffered a blow, but it could yet make a comeback.
Politics is the art of negotiation
- No does not necessarily mean no in politics.
- Henry Clay, the great compromiser and US Senator from the 1800s, said that the perfect compromise is when both sides of a negotiation walk away from the table with a deal that makes each unhappy.
President Biden and Senator Manchin continue to look for a common path: They agree on tax hikes
- Many Democrats are furious with Senator Manchin.
- As a former Senator, President Biden has continued to talk with Senator Manchin to find a path for agreement.
- The President and the West Virginia Democrat agree that taxes need to increase on the wealthiest Americans.
- Spending is the issue - The President and Senator have not closed the door on negotiations as we head into 2022.
Another Senator from the President’s party objects to tax hikes
- The administration needs all fifty votes from Democrats in the Senate to pass the BBB legislation.
- An agreement with Senator Manchin may not be enough.
- Arizona Senator Kyrsten Sinema objects to increasing taxes.
Raising taxes in an election year could be an issue for the majority party
- With the mid-term elections in 2022, increasing taxes could be a difficult pill for voters to swallow.
- Moreover, any attempt at a retroactive tax hike could cause carnage for the majority party in the elections, handing control to the opposition party for the second half of the administration’s first term.
Markets have already digested higher tax rates. Any changes could cause a lot of volatility
- Markets have already prepared for higher interest and tax rates in 2022.
- A situation where BBB fails and taxes remain unchanged could lift the stock market despite interest rate hikes.
- A smaller BBB legislation requiring fewer tax hikes could have a similar impact on stocks.
- Stocks are going into 2022 in a bullish trend, with the leading indices at or near record highs. The trend is always your best friend in markets across all asset classes.
TOPICS: Business/Economy; Society
KEYWORDS: buildbackbetter; infrastructure; joemanchin; spending
To: SeekAndFind
Let’s be realistic about our chances of BBB disappearing completely. There’s trouble afoot.
But let us also count our blessings. We have made it through tax year 2021 with the current laws in place. I am sure BBB would have changed that RETROACTIVELY (remember Clinton) if passed.
The election season is now upon us. Any dramatic changes will have to be fully hidden (not likely). The proverbial crap sandwich we may be forced to eat will have a better “bread to spread” ratio.
God bless Manchin for what he has done to date, but I do not have any great hopes about his intestinal fortitude next year.
2
posted on
12/28/2021 8:48:23 PM PST
by
jdsteel
("A Republic, Madam, if you can keep it." Sorry Ben, looks like we blew it.)
To: SeekAndFind
3
posted on
12/28/2021 8:48:43 PM PST
by
Bubba_Leroy
(Dementia Joe is Not My President!)
To: SeekAndFind
I never thought they would give up that quickly.
The progressives are very close to achieving what they have wanted in this country since before 1918. They know it’s now with (Rotten-Straw 4 Brains) Biden, or probably never within their lifetimes. Even a ‘President’ Kamala or Pelosi would feel pressured to tap the brakes on this rapid pace of dismantling and/or distorting the constitution.
To: SeekAndFind
My bet is that this is their October Surprise. They will resurrect it from the dead.
5
posted on
12/28/2021 9:52:30 PM PST
by
Paradox
(Don't call them mainstream, there is nothing mainstream about the MSM.)
To: All
Not dead, but on life support. My suspicion is that Joe Manchin is simply taking the heat as a few other ‘rat senators are seeing this as political suicide. It would be easy enough to get one or two assistant ‘rat senators to “cross the aisle.” That gets exponentially more difficult as the number of votes they need to make up increases.They simply don’t have the votes.
6
posted on
12/28/2021 11:52:50 PM PST
by
RKBA Democrat
(Cultural separation and divorce. Not partisan politics.)
To: SeekAndFind
Tax hikes and Interest Rate hikes. Yeah, I am preparing to do some Gigantic ROTH IRA Conversions. Why, I expect the market not to take it very well.
Inflation is rampant and so is spending in congress. Get ready folks, this is not going to be pretty.
To: SeekAndFind
...Markets have already digested higher tax rates. Any changes could cause a lot of volatility...Uh huh.
8
posted on
12/29/2021 5:51:11 AM PST
by
sauropod
(Resident Bidet. A confused old man at the wrong bus stop.)
To: SeekAndFind
9
posted on
12/29/2021 6:03:15 AM PST
by
Pollard
(PureBlood -- youtube.com/watch?v=VXm0fkDituE)
To: SeekAndFind
May not be dead yet but it’s bleeding like hell all over the place.
Clean up in main isle
10
posted on
12/29/2021 8:23:10 AM PST
by
Vaduz
(women and children to be impacIQ of chimpsted the most.)
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