The Labor Department posted the weekly jobless claims on the 19th: and U.S. officially recorded yet another 348,000 individuals filing for unemployment.
The media says this is a “new pandemic low.”
Nevertheless, this still translates to a tad bit over 3 fully-packed University of Michigan football stadiums.
Meanwhile businesses continue to report massive labor shortages all around the nation.
As of August 6th ShadowStats, an alternative economic analysis group, maintains that the U.S. has closer to 25.4% true unemployment.
Not Paying Uncle Sam
Due to all the government decisions enacted last year due to the shutdowns and restrictions levied against small businesses and households, a huge number of Americans did not pay federal income taxes for 2020.
According to estimates from the Tax Policy Center, that 61% (roughly 107 million households) owed no income tax or received tax credits from the government.
They believe this spike is only temporary, forecasting a 57% decline for 2021.
TPC further comments: ‘Last year, the share of non-payers increased by roughly 40 percent from the pre-pandemic year of 2019, due to a combination of a poor economy and multiple rounds of tax-based assistance to hard-pressed households.’
Roughly 20 million people lost their jobs – most of which were low-paying – therefore translated to paying very little income tax. Because of the several rounds of government stimulus (designed as refundable tax credits), they effectively reduced tax liability for 2020 and 2021. This caused some households to not have to pay their income tax.
Furthermore, the Child Tax Credit (CTC), Earned Income Tax Credit (EITC), and the Child and Dependent Care Tax Credit (CDCTC); all played a major role in wiping out federal income tax liability for millions, or receive credits that exceed their tax credibility.
Effectively no households making less than about $28,000 will pay federal income tax this year, nor will three-quarters of those making between $28,000 and $55,000. Among middle-income households, about 43% will pay no federal income tax.
Howard Gleckman, author of the report for the TPC
Read more about it here:
AUTHOR COMMENTARY
The rich ruleth over the poor, and the borrower is servant to the lender.
Proverbs 22:7
And yet we are habitually told that the economy is doing great, consumer confidence continues to rise, and blah blah blah. Even though a little more than 2 out of every 5 people will not pay income tax for this year, the ripple effect will continue to haunt and destroy millions more down the line.
I cannot keep up with the economic insane asylum we live in, but it’s nuts. Do not believe in the media hype one bit. Be wise and frugal with your money. Pay off debts and spend money on practical things. Don’t waste it on cryptos, or gold and silver.
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[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
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So considering they love to pilfer our money if we file late, does that mean they are going to pay us late fees for holding on to our money and returning it very late this time? I know I’m still waiting… I wonder if they are doing it on purpose?