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Biden's new tax proposal (really any new tax proposal), as well as calls for Wealth Tax by the IMF and one global corporate tax rate, highlights the trend toward increasing taxation as a solution to save society and restore equality. This is an old argument that's failed before, but we appear willing to repeat it because nobody studies the movement of money and capital. This is not a presentation of right versus wrong, but rather a study of history.
Those interested in arguing should head to social media, because they're plenty of opinioned 'experts' that haven't reviewed historical data, and despite this limitation, know everything.
Rising taxation at the expense of citizen's standard of livings has always been the trigger for social unrest. The hollowed out middle class will bear the burden of taxation, since money is mobile.
This mobility places constrains the total revenue collected regardless of taxation rates. History clearly illustrates this trend. Total revenues as percent of national income (GDP) is bound between 13% and 20% (see chart). Total revenue relative GDP is 16.2%, so there's some room to the upside. This assumption, however, implies a normal economic backdrop. Today's economy is highly dependent on debt stimulus to survive, so 20% might be an exceptionally lofty expectation.
S&P 500 (LCSCAI ), Gold (Gold) & Annual Total Revenus As % GDP (TRGDPR)
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