Vladimir Putin’s Cheesy Act of Defiance
The United States and European Union have been squeezing Russia with sanctions since it annexed Crimea, a territory that previously belonged to Ukraine, in March 2014. In response, Russian President Vladimir Putin established a ban on U.S. and EU foodstuffs a few months later as a snub to the West.
On Thursday, Russia commemorated a tightening of that year-old ban on Western agricultural products by bulldozing bright yellow blocks of cheese. The country also streamrolled fruit and set piles of bacon ablaze. By midday, 28 metric tons of apples and tomatoes from Poland had been demolished, as well as 40 tons of apricots from an unknown country, according to The Wall Street Journal.
Related: Move Over, Santa: Putin Claims the North Pole
The Western sanctions and a plunging ruble have caused Russian food prices to spike this year. Some politicians, religious leaders and other Russian citizens denounced the destruction of the food, noting that millions of Russians are living in poverty. More than 285,000 people signed an online petition that asked Putin to distribute the food rather than destroy it.
The Kremlin has promised to help develop Russia’s own agricultural industries and to promote domestic food products that the middle-class generally ignore in supermarkets in favor of status symbols like French cheese and Italian meat. In addition, the Kremlin announced that any contraband foodstuffs found would be destroyed. Russia’s Agricultural Minister Alexander Tkachyov said on state TV that the quality of Western food products could no longer be guaranteed.
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Tweet of the Day: The Black Hole of Big Pharma
Billionaire John D. Arnold, a former energy trader and hedge fund manager turned philanthropist with a focus on health care, says Big Pharma appears to have a powerful hold on members of Congress.
Arnold pointed out that PhRMA, the main pharmaceutical industry lobbying group, had revenues of $459 million in 2018, and that total lobbying on behalf of the sector probably came to about $1 billion last year. “I guess $1 bil each year is an intractable force in our political system,” he concluded.
Warren’s Taxes Could Add Up to More Than 100%
The Wall Street Journal’s Richard Rubin says Elizabeth Warren’s proposed taxes could claim more than 100% of income for some wealthy investors. Here’s an example Rubin discussed Friday:
“Consider a billionaire with a $1,000 investment who earns a 6% return, or $60, received as a capital gain, dividend or interest. If all of Ms. Warren’s taxes are implemented, he could owe 58.2% of that, or $35 in federal tax. Plus, his entire investment would incur a 6% wealth tax, i.e., at least $60. The result: taxes as high as $95 on income of $60 for a combined tax rate of 158%.”
In Rubin’s back-of-the-envelope analysis, an investor worth $2 billion would need to achieve a return of more than 10% in order to see any net gain after taxes. Rubin notes that actual tax bills would likely vary considerably depending on things like location, rates of return, and as-yet-undefined policy details. But tax rates exceeding 100% would not be unusual, especially for billionaires.
Biden Proposes $1.3 Trillion Infrastructure Plan
Joe Biden on Thursday put out a $1.3 trillion infrastructure proposal. The 10-year “Plan to Invest in Middle Class Competitiveness” calls for investments to revitalize the nation’s roads, highways and bridges, speed the adoption of electric vehicles, launch a “second great railroad revolution” and make U.S. airports the best in the world.
“The infrastructure plan Joe Biden released Thursday morning is heavy on high-speed rail, transit, biking and other items that Barack Obama championed during his presidency — along with a complete lack of specifics on how he plans to pay for it all,” Politico’s Tanya Snyder wrote. Biden’s campaign site says that every cent of the $1.3 trillion would be paid for by reversing the 2017 corporate tax cuts, closing tax loopholes, cracking down on tax evasion and ending fossil-fuel subsidies.
Read more about Biden’s plan at Politico.
Number of the Day: 18 Million
There were 18 million military veterans in the United States in 2018, according to the Census Bureau. That figure includes 485,000 World War II vets, 1.3 million who served in the Korean War, 6.4 million from the Vietnam War era, 3.8 million from the first Gulf War and another 3.8 million since 9/11. We join with the rest of the country today in thanking them for their service.
Chart of the Day: Dem Candidates Face Their Own Tax Plans
Democratic presidential candidates are proposing a variety of new taxes to pay for their preferred social programs. Bloomberg’s Laura Davison and Misyrlena Egkolfopoulou took a look at how the top four candidates would fare under their own tax proposals.
