Biden’s Tax Plan is Already in Trouble; Canada’s Export Boom
Author: Greg Valliere
March 30, 2022
JUST ONE “NO” DEMOCRATIC VOTE from either Manchin or Sen. Kyrsten Sinema (Ariz.) — both maverick centrists — would kill the Biden tax plan. Manchin has indicated he could support for some type of tax hike on very wealthy individuals and highly profitable companies, but passing any tax bill this year will be a long slog.
A MAJOR OBJECTION by all Republicans and a few Democrats is that this Biden proposal would tax unrealized gains — which looks like a “wealth tax” that Elizabeth Warren and other Progressives have attempted (unsuccessfully) to enact. A wealth tax would raise Constitutional issues — “You can’t tax something that’s not earned,” Manchin told The Hill.com yesterday.
[IN A RELATED DEVELOPMENT, Manchin’s detractors got quite a gift on Monday, when the Washington Post ran an exhaustive report on his coal business in West Virginia. There’s no question that Manchin used his position for personal enrichment — which happens frequently, but rarely as blatantly as Manchin’s graft.]
* * * * *
THE UKRAINIAN WAR HAS A CLEAR BENEFICIARY — CANADA: Check out the article in this morning’s Wall Street Journal, which focuses on resource-rich Canada, which is enjoying unprecedented global demand as supplies tighten in Russia and Ukraine for potash, crude oil, uranium, nickel, wheat, etc.
AS THE WORLD FACES growing food and fuel shortages, trade with Canada is likely to rise further, according to the Journal article, even though there are infrastructure challenges in getting many of these goods — especially fossil fuels — out of Canada.
MEANHILE, PEACE TALKS are inching toward a resolution; the biggest roadblock, in our opinion, will be the sanctions, which cannot be turned on and off like a light switch. Vladimir Putin is responsible for killing thousands of people, and he won’t get sanctions lifted quickly even if there’s a truce.
WE CONTINUE TO BELIEVE that the most important developments are on the battlefield, where Russian troops are being routed. Even as Russians continue shelling cities, their ground troops are in disarray and on the defensive; the war criminal Putin will have to sue for peace later in April.
The views expressed in this blog are provided as a general source of information based on information available as of the date of publication and should not be considered as personal investment advice or an offer or solicitation to buy and/or sell securities. Speculation or stated believes about future events, such as market or economic conditions, company or security performance, or other projections represent the beliefs of the author and do not necessarily represent the view of AGF, its subsidiaries or any of its affiliated companies, funds or investment strategies. Every effort has been made to ensure accuracy in these commentaries at the time of publication; however, accuracy cannot be guaranteed. Market conditions may change and AGF accepts no responsibility for individual investment decisions arising from the use of or reliance on the information contained herein. Any financial projections are based on the opinions of the author and should not be considered as a forecast. The forward looking statements and opinions may be affected by changing economic circumstances and are subject to a number of uncertainties that may cause actual results to differ materially from those contemplated in the forward looking statements. The information contained in this commentary is designed to provide you with general information related to the political and economic environment in the United States. It is not intended to be comprehensive investment advice applicable to the circumstances of the individual.
AGF Investments is a group of wholly owned subsidiaries of AGF Management Limited, a Canadian reporting issuer. The subsidiaries included in AGF Investments are AGF Investments Inc. (AGFI), AGF Investments America Inc. (AGFA), AGF Investments LLC (AGFUS) and AGF International Advisors Company Limited (AGFIA). AGFA and AGFUS are registered advisors in the U.S. AGFI is a registered as a portfolio manager across Canadian securities commissions. AGFIA is regulated by the Central Bank of Ireland and registered with the Australian Securities & Investments Commission. The subsidiaries that form AGF Investments manage a variety of mandates comprised of equity, fixed income and balanced assets.
About AGF Management Limited
Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. AGF brings a disciplined approach to delivering excellence in investment management through its fundamental, quantitative, alternative and high-net-worth businesses focused on providing an exceptional client experience. AGF’s suite of investment solutions extends globally to a wide range of clients, from financial advisors and individual investors to institutional investors including pension plans, corporate plans, sovereign wealth funds and endowments and foundations.
For further information, please visit AGF.com.
©2022 AGF Management Limited. All rights reserved.