This week, progressive congresswomen Alexandria Ocasio-Cortex stated that conservatives are using the term “wokeness” as a means to distract progressives from pursuing racial justice. This is such a farse! This is the same woman who is demanding that congress pass the Build Back Better Bill, which will allow Wall Street and their cronies to keep paying lower tax rates than the racially divided class of people who AOC and her progressive colleagues say they are trying to protect and elevate economically.
It has to do with something called the “carried-interest rate, which allows individuals working in the financial industry to pay a lower tax rate. It is a type of performance bonus, in which investment managers are paid based on the profits of their client’s portfolio each year.” By keeping this rate a 23.8% instead of 37%, this gives the money managers a gigantic tax break compared to what others would have to pay when earning that same amount of money. This carried-interest rate was, by the way, likened by former president Donald Trump as “getting away with murder.” Yet AOC and her faction of progressives have literally ignored this huge tax loophole which Wall Street and their cronies get to enjoy. Even Bernie Sanders, the avowed social justice warrior, has been dubiously silent.
Funny how progressives live such a lie. In the past Bernie has repeatedly voiced his concerns about the carried-interest rate. Reps Cortex, Omar, Pressley, and Talib even sponsored a bill in 2019 which would have eliminated the carried-interest rate. But today, when they have an opportunity to stop the carried-interest rate loophole once and for all, they remain silent.
In my latest book, How to Build Sustainable Wealth, I discuss how to avoid the fees which the money managers siphon off your portfolio. Like a leech, these money managers suck the blood of their hosts while providing no significant benefits. History has proven, time and time again, that beating the market turns out to be highly unlikely. In fact, over the last 15 years 92.2% of the managed large cap funds performed worse than the S&P 500 Index fund. And managed mid-cap and small cap funds performed even worse with a score of 95.4% and 93.2% respectively. All-in-all the odds of using a managed fund to create better returns than a domestic index is 1 in 20. This is a less than 5% chance of earning more and a 95% chance of losing more when using a money manager to manage your portfolio.
So, in reality all these progressives don’t sincerely care about the common folk in America. They not only allow these money managers to continue charging for their less than stellar results of beating the market, and they provide them with a huge tax break on what they do collect from their poor unsuspecting clients!
The only thing which progressives seem to really be protecting is their own special rights. For example, Bernie Sanders holds stock in JP Morgan, Chase, Citigroup, Bank of America, US Bankcorp, Wells Fargo! of which he has been super critical of on the campaign trail as well as on the Senate floor. On top of that he also holds stock in pharmaceutical companies as well as fracking companies. What a hypocrite.
AOC, on the other hand, is on track to becoming a multi-millionaire by the time she is 45. Not bad for a self-declared socialist who claims to be representing the racially oppressed. It still fascinates anybody who is really paying attention, how someone can rise so rapidly to the top of the socio-economic ladder once they enter congress. And the indebtedness these same congress members believe their constituents should have for them is appalling.
Participating whole life insurance, the product money managers love to hate, is still the best way to build sustainable wealth. When like-minded people, pool their money together for greater leverage, that pool of money can provide guaranteed results while avoiding taxes and unscrupulous fees money managers charge. Who could possibly be against doing that? Oh yes, I forget, it must be those who do absolutely nothing about the carried-interest rate while shouting arrogantly how much they are fighting for the lower and middle classes while enriching themselves.
Phooey. Don’t get caught up in the idea that Congress will do anything which will protect your God-given rights. They have proven why they really hold office, and it isn’t to provide equity to anybody but themselves.
Dr. Tomas McFie is a retired physician. As the founder of Life Benefits, he currently works in the financial industry exposing the fallacies of typical financial planning and helping clients keep more of the money they make with a formula that creates financial peace of mind.