The Deep Woods: Toxic Tariff and Tax Talk

You are receiving this email because you signed up to receive our free e-letter The Deep Woods, or you purchased a product or service from its publisher, Eagle Financial Publications. [The Deep Woods] [Successful Investing]( [Bullseye Stock Trader]( [About Jim]( In This Issue: - Toxic Tariff and Tax Talk - ETF Talk: Digging Up a Silver ETF - The Cat and the Horror - Crypto: Currency or Commodity? - Be Yourself Toxic Tariff and Tax Talk by Jim Woods Editor, [Successful Investing]( and [Bullseye Stock Trader]( 09/11/2024 Sponsored Content [Former Chicago Pit Trader Exposes Shocking Trading Advantage:]( "Every Time The Government Releases Economic Reports... Make This ONE Trade" [See How to Target Up to 383% OVERNIGHT]( Toxic Tariff and Tax Talk  Hey America, did you hear that sound? You know, the all-too-familiar sound of politicians planning to pick your pockets while telling you that they’re doing it all for you. Last night, the country was “treated” to some very toxic tariff and tax talk by the two candidates vying for the position of most-powerful human on the planet. I say toxic, because both promulgate falsehoods when it comes to economics, and both want you to believe that what they want to do isn’t what they are actually going to do. Let’s start with Vice President Kamala Harris, as her position on taxes is a bit more straightforward to understand in terms of its tried-and-true toxicity. Harris says she wants to raise the corporate income tax rate from the current 21 percent to a more perniciously high 28 percent. Her justification for this is to “ensure the wealthiest Americans and the largest corporations pay their fair share.” Aside from the cliché abuse she’s guilty of via the bromide “pay their fair share,” Harris’s proposed increase of the corporate tax would represent a big hit to non-wealthy Americans, who also happen to be corporate employees, consumers and investors. Here’s how the non-partisan think tank the [Tax Foundation assess the Harris proposed corporate tax hike consequences](: “A higher corporate tax rate would raise revenue; however, any revenue would come at a high price of lost economic output, investment and wage growth. For example, under a 28 percent corporate rate… we estimate that for every $1 of higher revenue on a conventional basis, GDP would fall by $1.84.” Here is a news flash for Harris and anyone who thinks higher taxes are good for America: They result in a net-negative for the economy. Now, as for former President Donald Trump, he is also proposing higher taxes, he’s just shrouding them in the deceptive cloak he calls tariffs. During the debate, Trump doubled down on the tariff pledge, threatening “substantial” new tariffs on other countries and claiming, “I took in billions and billions of dollars, as you know, from China.” No, Mr. Trump, I don’t know that. Yes, you “took in” billions of dollars from the tariffs, but it wasn’t from China -- it was from American companies, the actual entities that pay the tariffs. Here, once and for all, I want to make clear how tariffs work, because there is a grotesque misunderstanding about this issue that keeps being falsely promulgated by the Trump camp. And apparently, many people either do not know the truth, or they’ve just chosen to go along with the Trump spin on this issue. Tariffs are paid by U.S. companies. Full stop. In fact, there has never been a single penny sent from China to the U.S. Treasury as a result of a tariff on U.S. imports. When a tariff is placed on imported goods from China (or anywhere else) into the U.S., that tariff is paid by U.S.-registered firms directly to the U.S. Customs agency. Perhaps a better term to use, which is much more clarifying and much-less subject to Orwellian language manipulation, is to call a tariff what it actually is -- an import tax on U.S. companies. Of course, U.S. companies don’t just treat import taxes as a static cost of doing business. Instead, like all forms of tax increases, these companies usually pass the costs on to their customers by raising their prices. Higher prices mean higher inflation, and higher inflation means more constrained and more restricted economic activity. And then there is the damage to investors, as these higher import taxes pressure corporate profits, and that throttles earnings-per-share growth, which hamstrings share prices. Finally, I must relate to you a personal anecdote regarding this subject, one that captured a lot of kudos from fellow members of the investment community. A few months ago, I attended an investor event at Mr. Trump’s Mar-a-Lago resort in Palm Beach, Florida. I wrote about this event in The Deep Woods, which you can [read more about here](. At dinner that night, our group heard a speech from one of the architects of the Trump import tax, U.S. Trade Representative Robert Lighthizer. Lighthizer spoke for about 30 minutes, and most of his talk was aimed at dispelling what he called the “free-market myth” that tariffs hurt the economy. After citing some rather unconvincing examples, I became disenchanted, which impelled me to act during the Q&A period. It was then that I was handed the microphone, and asked Mr. Lighthizer the following question, which, of course, I already knew the answer to: “Can you please clear something up for me: Who, exactly, pays these tariffs? Is it the Chinese government, or is it the American company who has to write a check to the U.S. Customs agency?” Like any nimble politician, Lighthizer saw the dangerous waters he was about to wade into with my direct inquiry. So, rather than give me a direct answer, he pivoted and started talking about how tariffs don’t cause inflation and that this was one of the myths floating around the free-market worldview. After dinner, and much to my delight, I was approached by multiple colleagues who congratulated me on my direct question. You see, these are sophisticated, and in many cases free-market, libertarian-leaning investors, writers and businessmen who also know that tariffs are a form of taxation, and that they are not good for America. If former President Trump wants to regain office, I think he should consider doubling down on taxes by offering more of what he did in his signature achievement, The Tax Cuts and Jobs Act, which was a significant overhaul of the tax code that he signed into law in 2018. That very good piece of legislation included some of the biggest changes to the tax code in some three decades. We need more policies like this, and fewer import taxes. Tax cuts versus tax hikes. That’s the binary choice we should be facing in this election. Instead, we face a [Hobson’s choice]( of Trump’s import tax hikes versus Harris’s corporate tax hikes. In either case, America loses. Now, because I’m all about America winning, I can’t just leave you on that downbeat note. That’s why, today, I am thrilled to be able to tell you about my newest project, one that is designed to make Americans prosperous regardless of who wins this presidential election, or any election, for that matter. So, today, I am pleased to announce the upcoming debut of my newest trading service…[Jim Woods’ Crypto & Commodities Trader](. As its name implies, this new trading service is all about how to profit from two of the most exciting, and potentially most profitable, segments of the global economy today -- both of which are not directly correlated with the broad stock market. This soon-to-launch service will go live very shortly, and in our first issue we will have several outstanding ways for you to profit from the rise in Bitcoin, precious metals, industrial and agricultural commodities, and even from companies whose existence represent great 'picks and shovels' plays on the crypto and commodities space. And, because it’s a trading service designed to achieve maximum alpha, we will also use instruments with leverage, including options and leveraged exchange-traded funds (ETFs) to supercharge our returns. If you would like to be among the first to find out more about this service, and get immediate access to my new special report: America’s Freedom Multiplier: How to Use Crypto & Commodities to Attain Financial Freedom, then all you have to do is [simply click here](. You will be sent to a no-obligation landing page so that you can download this report, compliments of your editor. Oh, and by the way, I am not shy about saying this is one of my favorite things I’ve ever written, as it lays out the importance of using all the beautiful tools at your disposal to help make you a freer, more prosperous American. Once again, to get your copy of my brand-new, free special report, America’s Freedom Multiplier: How to Use Crypto & Commodities to Attain Financial Freedom, and to put yourself on the “hotlist” to be among the first to know more about the new release of the Jim Woods’ Crypto & Commodities Trader, [simply click here](. Together, will make America, and your portfolio, flourish! [China’s Global Conspiracy to Destroy the American Dollar]( China is nearing the end of its 40-year plan to dominate the world’s economy. Only one obstacle remains: The U.S. dollar. But not for long... because China has enlisted many co-conspirators to sink the dollar: Russia, India, Brazil, Argentina, Germany, and even Canada. And – no surprise – the International Monetary Fund (IMF) wants to jump in to help China win. This means China now has the power to crush the dollar almost overnight... and bankrupt America. But there’s still time to protect the money and retirement of investors. [Click here now to find out how... before it’s too late.]( ETF Talk: Digging Up a Silver ETF “Gold and silver have always had value, never gone to zero. Can you say the same for stocks and bonds?” -- Mark Skousen       The above pearl of wisdom from my friend and [Fast Money Alert]( co-author Dr. Mark Skousen underscores the constant allure that precious metals have had to human beings throughout history. Precious metals, especially during inflationary times, have held their value, while the value of fiat money issued by central banks drops, often precipitously. That is why I always recommend to my [Successful Investing]( subscribers (and if you aren’t one, why aren’t you?) to have a bit of golden shine in their investment portfolios. It’s also why, every year when it comes time to register for my favorite event of the year -- FreedomFest -- Dr. Skousen will offer you an opportunity to obtain an American Eagle Silver Dollar for yourself. Stay tuned! Even in the most troubled and darkest days of human history, the opportunity, wealth and power that come from possessing gold and silver have never stopped gleaming like adventure to a courageous man’s eyes. But King Midas can keep his golden touch. I’m interested in the other precious metal here -- silver -- in the form of the iShares Silver Trust (NYSEARCA: SLV). In short, this exchange-traded fund (ETF) focuses on reflecting, as close as possible, the price of silver, which provides a handy way for investors to own silver without having to worry about the complexity and expense of securing or transporting the metal itself. The fund’s assets are almost completely in the form of silver bullion held by the fund’s custodian -- JPMorgan Chase -- alongside a very small amount of cash when necessary. Here, it is also worth pointing out that the fund does not act to take advantage of fluctuations in the price of silver. If you’re looking for an actively managed fund that does buy or sell silver when appropriate, it would be best to look elsewhere. As of Sept. 11, SLV has been up 3.76% over the past month and is currently up 19.10% year to date. Chart courtesy of [www.stockcharts.com]( The fund has amassed $13.73 billion in assets under management and has an expense ratio of 0.5%. At the same time, silver (like any commodity) has another side that can tarnish its shine. The price of silver can be affected by changes in the global economy, due to silver’s many industrial and commercial applications, as well as changes in interest rates and the supply of silver itself. So, it’s important to carefully consider the risks and potential returns before making any investment decisions. The Cat and the Horror (2024) There was a cat sleeping on my porch She didn’t know what I had witnessed The lacerated skyline of metropolis A bleeding out of her twin sons Flying lancets piercing steel hulls Black smoke seasoning the azure sky As the falling man descends to the concrete Incendiary ideas born in Bronze To please a prophet on a white horse Hatred of the good for being the good Crumbles a once-proud icon Falling ash blankets District streets A macabre concoction of concrete, bone, blood Fury rises in the giant’s heart Rage and revenge burn white Country targeted, let there be fight Two decades later, let there be flight There is a cat sleeping on my porch While the world remembers -- Jim Woods Today, we mark the 23rd anniversary of the attacks on Sept. 11, 2001. For me, the passing of more than two decades hasn’t been enough to fade the scars. For me, those scars will never be allowed to fade. Etched on my personal black box recorder are the memories I had circa 1999, when I checked in at the World Trade Center lobby to report to work for my first day at Morgan Stanley. The firm’s training program for new advisers/traders took place in those Twin Towers, and in the weeks that followed, I spent many an afternoon high atop the Manhattan skyline, learning the business inside the iconic monument erected to celebrate capitalism, Western achievement and the wealth of nations. Their boldness, their glaring simplicity, their twin-brother-like stance and their defiance of the rest of the New York City skyline were all part of the reason the World Trade Center was targeted for destruction by forces whose primary directive is death to the infidel. On that day, when the blue skies were pierced by the stiletto insertion of commercial jets into the towers, I watched the events unravel from some 2,500 miles west. A condo nestled at the foot of the Hollywood Hills hardly seemed congruent to the billowing smoke oozing out of the structural siblings. The only connection in my mind was… my mind. A mind having been there just a couple of years earlier, wondering what it would be like to actually be there in that moment. Wondering if I would have been incinerated along with the roughly 2,600 other souls that were extinguished that day. Wondering if I would have acted heroically the way so many did. Wondering if I would have succumbed to the cowardice that so often accompanies paralytic fear. I would like to think I could have been a hero. I need to think I would have been a hero. Fortunately, I didn’t have to find out. Instead, from afar, from the safety of Hollywood, I watched. All day, all night, I watched. Compelled by the horror; compelled by the enormity. Thinking to myself, “Will this be the world from here on?” Would the world be plunged into war? At that moment, I wanted war. I wanted vengeance. I wanted to pound those responsible, and the philosophy that animated these acts into a pulp. I still want to. I want to stoke the burn of that day. I want to remember the collapse of icons. I want to keep calling out the life-hating, celebratory death cult of ideas that is radical Islam, and I want to rejoice in its defeat. The scars of history must never be allowed to heal, and no salve of time should be permitted to mask the day America would be altered forever. Note: For the full immersion experience, I invite you to listen to [a special audio essay of “The Cat and the Horror.”]( [How to know what to trade.]( With thousands of stocks in the market… How do you know which ones to trade? You may not believe this, but… You can ignore almost all of them, because when it comes to stock and options trading... This is [something valuable]( that tells you the few stocks that you really should be looking at. Your whole search and strategy can take less than 15 minutes. Which leaves plenty of time to do the other things you want to do during your day. If you want to learn more - this free live class will show you how. [Save Your Seat Here.]( In case you missed it… Crypto: Currency or Commodity? “Jim, is cryptocurrency such as Bitcoin an actual currency, or is it more like a commodity?” This is a question I was asked over the Labor Day weekend while attending a friend’s barbecue, and it’s a very good one. I say that because, despite its existence for over 15 years, Bitcoin is still not very well understood. Yes, investors have benefited from the digital currency (or is it a commodity?) for much of that decade and a half, but the debate still rages on whether there’s a future for Bitcoin and for the slew of other crypto assets, and what that future might be. Indeed, there is even a big question as to just how to classify the asset, hence that good question I fielded over the weekend. The way I look at Bitcoin and other cryptocurrencies is that it’s an asset class (possibly a hybrid between a currency and a commodity) that offers tremendous upside to investors with a stable constitution that allows them to benefit from the upside in this innovative technology. I say “technology,” because at the heart of Bitcoin is the blockchain technology that it’s based on. To understand this aspect of Bitcoin, we need to understand its origin. The digital asset was created by a shadowy and mysterious individual (possibly a group of individuals) known as Satoshi Nakamoto. The technology behind Bitcoin is super interesting, and I will write about that in future issues of The Deep Woods. For now, the goal of the early proponents of this technology saw it as a way of moving monetary policy out of the hands of governments and central banks and into an autonomously managed system. This removal of currency from government is a dream state for a libertarian mind such as mine, and of course, I am far from the only one who sees this as a most laudable societal development. Again, I will write more about the freedom aspect of Bitcoin and its potential role in a more libertarian society in future issues of The Deep Woods and in other upcoming channels you will be hearing much more about very soon (hey, how’s that for a teaser!). For now, know that Bitcoin is a technology designed to act as money and as a digital form of payment outside the control of any one person, group or entity. This removes the need for trusted “third-party” involvement (e.g., a mint or bank) in financial transactions. Now, while you can buy goods and services with Bitcoin, the problem, practically speaking, is that the price of Bitcoin fluctuates much more like a commodity than a currency. That makes its purchasing of goods and services quite impractical. The one aspect that you, as an investor, can take advantage of is precisely the commodity-like price volatility of cryptocurrencies. Bitcoin price in U.S. dollars over the past five years. The chart here shows Bitcoin in U.S. dollars over the past five years. As you can see, it’s been a volatile ride to say the least. And while the “crypto winter” of late-2021 through the end of 2022 was a big downer for those long the asset, if you would have owned it since its 2022 low, you would be holding a gain of about 270% through its current price point. Still, the question remains: Is crypto a currency or a commodity? The great Bruce Lee once said that when it comes to borrowing styles and techniques from various martial arts, the only thing that matters is whether it will help you win a fight. If it helps, then you should use it, as Bruce famously said. When it comes to cryptocurrencies, I feel the same. As an investor, you’re in a fight to grow your capital the best way possible. And if using Bitcoin or other cryptocurrencies (or related assets such as exchange-traded funds, related stocks and/or related put and call options) is a good way to do that, then you should definitely use it. That applies to cryptocurrencies -- whether they’re currencies, commodities or a hybrid of both. Hey, like Bruce says -- if it helps you win a fight, then you should use it. Be Yourself “Be yourself; everyone else is already taken.” --Oscar Wilde “This seat is taken, sir.” That’s what someone rather abruptly told me this weekend when I attended a packed screening of the film, “Reagan.” I highly recommend this film, because it favorably portrays a man with conviction, determination, grit, charm, wit, charisma, integrity, intelligence -- you know, all of the things we want in a president, but that somehow keep managing to elude us. The more important point here, however, is that what I was told about the seat being taken reminded me of one of my favorite quotes from the sublime Oscar Wilde about being yourself. You see, there is only one you. And though we all share a common biological ancestry as humans, we are all different in our own way. So, embrace that difference. Be who you want to be. And I don’t mean that as a platitude. I mean that literally in the form of your deepest opinions, thoughts and actions. And whatever that is, be proud of it. After all, there is only one you, so flaunt it! And besides, everyone else is already taken. Wisdom about money, investing and life can be found anywhere. If you have a good quote that you’d like me to share with your fellow readers, send it to me, along with any comments, questions and suggestions you have about my newsletters, seminars or anything else. [Click here](mailto:askjim@successfuletfinvesting.com) to ask Jim. In the name of the best within us, [Jim Woods] Jim Woods Editor, Successful Investing & Bullseye Stock Trader About Jim Woods: [Jim Woods]Jim Woods has more than 25 years experience in the markets, as a stock broker, hedge fund money manager, author, speaker and independent analyst. Today Jim serves as editor and investment director of the long-running newsletters [Successful Investing](, [Bullseye Stock Trader]( and a new Live Coaching service offered exclusively to his readers. His articles have appeared on many leading financial websites, including StockInvestor.com, InvestorPlace.com, Main Street Investor, MarketWatch, Street Authority, and many others. About Us: Eagle Financial Publications is located in Rosslyn, VA. – Blocks from the Capitol. Our products have been helping investors build their wealth for several decades. Whether you’re a long-term investor or short-term trader, you’ll find the right strategy for you, including how to earn more steady income to spend now, preserve and grow your capital to enjoy later, and whatever other investment goals you have. Visit Our Websites: - [StockInvestor.com]( - [DividendInvestor.com]( - [DayTradeSPY.com]( - [CoveredCall]( - [MarkSkousen.com]( - [GilderReport.com]( - [BryanPerryInvesting.com]( - [JimWoodsInvesting.com]( - [InvestmentHouse.com]( - [RetirementWatch.com]( - [SeniorResource.com]( - [GenerationalWealthStrategies.com]( - [[YouTube] Visit our YouTube Channel - Eagle Investing Network]( To ensure future delivery of Eagle Financial Publications emails please add financial@info2.eaglefinancialpublications.com to your address book or contact list. This email was sent to {EMAIL} because you are subscribed to The Deep Woods. To unsubscribe from this list please click [here](. To stop receiving emails simply click [here](. 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