Bankrupting America with the Corrupt Employee Retention Credit

The scamdemic opened the way for bankrupting fiscal policies dubbed as “Bidenomics”.  There has been little if any attempt to counter this by the corrupt Republicans. The Beltway brethren racked up a deficit of $1.62 trillion for the 1st 10 months of the current fiscal year, according to the Congressional Budget Office’s monthly review for July. That’s up from $726 billion a year earlier.

As we have noted interest payments alone are approaching $1 trillion a year.

See: Debt Trap and Beyond

An aspect of kakistocratic Bidenomics and their fellow travelers the corrupto Republicans is lining the pockets of the wealthy in an attempt to “keep the economy afloat”.

QI Research CEO and Chief Strategist Danielle DiMartino Booth explains how a scam called the Employee Retention Credit is fueling luxury spending and travel. DiMartino Booth argues that the credit is being used by America’s top earners, who are “largely” taking the funds and “splurging on fancy international travel.” We would add that this is keeping capital into bubble stocks which maintains the inflated stock markets as well.

DANIELLE DIMARTINO BOOTH (DDB): So I think the background here is understanding what the employee retention credit is. It was created as part of the CARES Act. And it was designed for smaller businesses, who kept their employees on the payroll, who had their business interrupted in 2020, such that they could claw back up to $21,000 per employee when filing their 2020 tax return.

That was extended and expanded greatly by the Biden administration with the first stimulus check that they signed in. It extended out to the first three quarters of 2021 and also applied up to $26,000 per payroll taxes, including startups– startups that rose like a phoenix out of the ashes of the pandemic. And that is where I think the IRS is really started to combat a lot of the fraud that it’s facing with this program to give you a feel for the scope.

About– last year at about this time, we were talking about $15, maybe to $20 billion a month. But by the time December rolled around, claims were getting paid out to the effect of almost $26 billion a month. In July, we had $30– more than $30 billion paid out in these income tax credits. They’re mostly going to the top 20% of earners in America, who are largely taking these proceeds, these taxpayer dollars, and splurging on fancy international travel.

DDB points out that little is being done to counter the fraud, so we could potentially see $400 billion a year go towards consumer spending directly deposited into the accounts of higher income-earning Americans. And this is why we have not seen a recession in 2023 in good part in addition to other fiscal stimulus that’s happening.

33:45 this interview mentions huge downward payroll revision of dicey numbers on August 23rd.

Meanwhile the Have Nots are staring down the barrel of $1.6 trillion in student loan payments resuming on October the 1st.

We have noted on these pages that it doesn’t take a deep thinker to predict what would happen once the draining of oil from the Strategic Petroleum Reserve abates.

It appears we have reached that point. On Monday, the Department of Energy (DoE) reported no change for the third week in a row to the inventory held in the Strategic Petroleum Reserve (SPR) in the week ending July 28, with the SPR inventory still sitting at a 40-year low of 346.8 million barrels. Surprise, surprise oil prices are running.

It also appears that the kakistocracy’s “corrupt “Energy Secretary” was colluding with the CCP on delivering this oil.

Energy Secretary Granholm secretly consulted with a top Chinese Communist energy official before the release of 50 million barrels of oil from the SPR, the largest release of its kind in US history at the time.
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— Citizen Free Press (@CitizenFreePres) August 4, 2023

To top it off apparently the European gas market is sniffing out that the continent will not benefit from a warm winter and more sub-zero kakistocratic expediencies.