Monday, July 26, 2010
Treasury Secretary Geithner Says Let Bush Era Tax Cuts Expire: Exactly Who Buys Real Estate Anyway?
U.S. Treasury Secretary Timothy Geithner made the Obama Administration's case yesterday for letting the Bush-era tax cuts on the "rich" (actually those making over $200,000 per year) expire in the name of fiscal discipline.
Coming from a guy who has a history of not paying income taxes this argument was laughable, almost surreal.
Geithner, probably the most inept Treasury secretary in American history, is about as convincing on the subject of taxes as Tiger Woods preaching on the virtues of marital fidelity.
Forget about the macroeconomic implications of hitting people, LOTS OF THEM, with serious tax increases in the middle of a recession. Not exactly stimulative, is it?
Let's deal just with the implications for real estate. Who exactly buys rental properties and commercial real estate? With the industry battered, bleeding, and still suffering, does real estate truly need another serious financial hit?
So who exactly who can buy all those surplus rental properties flooding the real estate markets? Single mothers working at Wal-Mart? UPS truck drivers? What about baristas at Starbucks? The guy who makes sandwiches at Subways?
It's the upper middle class and the rich, silly. $200,000 a year isn't exactly rich but these people normally have surplus capital to invest, in of all things, real estate.
Instead of making a mortgage payment on a new rental property held for retirement, these people can now just send the same amount of money to Mr. Geithner so he can make interest payments to the Chinese government on all those bonds he sold them to finance the bloated and growing Federal deficit.
Geithner needs to be fired. NOW. This fool has never had a job in the private sector by his own admission and his bizarre ideas and incomprehensible answers to the most serious economic problems of the day prove this daily, unfortunately for us.
Robert J. Abalos, Esq.