Thankfully, the election is done and over – and in a second a few comments about it. But, there are bigger fish to fry. As we predicted Saturday, it looks like the first move post-election will be up (through Friday) as the market fires up this morning.
More important? We have been modeling drivers for the next economic downturn. And this morning we’ll give you a thumbnail of what’s coming. A huge effective tax increase for people in high tax burden states.
Even if you aren’t a subscriber, you need to know that under the same “tax cut bill” that brought a lot of offshored capital back home, there is also a nefarious limit on deduction of state and local taxes of $10,000 per year. After that, no further write-off for state and local taxes as we understand the law.
We ask wryly (or is that cynically?) note this is NOT something that anyone made a “big deal about” before the election. However, it sure explains to us why the national media haven’t hyped the story and why so many D.C. old-timers decided NOT to run this time around.
We figure they don’t want to be around come the end of this year when the “Tax Bomb” we’re talking about this morning goes off.
Some election results first and coffee to make the ride out to the coming site of the financial trainwreck a little more pleasant…