Senate To Pass Latest Unemployment Stimulus Bill: Cost To Futures Generations: A Penny Or Three (NPV)

Tyler Durden's picture

In keeping with the tradition of digging America into a debt hole so ridiculously large any conversation over whether the US will be able to ever pay this debt off is immediately moot, the Senate has just ended debate over the latest micro fiscal stimulus, specifically the legislation extending unemployment insurance benefits. It appears the latest iteration of the "you never have to work again as long as you vote for Obama" bill is about to pass. Next up: free government jobs for everyone as the census becomes a monthly affair. And when that fails, free Bernanke Bux for all who still remember how to breathe after all the daily Desperate Housewives of Liberty 33 drama. As for the cost of this latest freebie: $25, $50 billion.. who cares - at the eventual hyperinflationary discount rate, the NPV is about a penny or three. As for current funding, two Fed Assured 2 Year glitchless auctions at record low rates will take care of it.

More on the latest chapter in the development of the USSA via iMarketNews:

The Senate voted Tuesday to end the debate on legislation extending unemployment insurance benefits, setting the stage for final passage of the bill in the Senate later in the day.

The Senate voted 60 to 40 to end the debate.

The vote occurred after the new interim senator from West Virginia, Carte Goodwin, was sworn in.

If a final Senate vote on the UI benefits occurs later Thursday, the measure would go to the House for its consideration.

House Majority Leader Steny Hoyer said he expected the House to approve the bill Wednesday.

The bill would retroactively give UI benefits to more than 2 million people who have lost them since the end of May. It extends funding through Nov. 30.

Senate Minority Leader Mitch McConnell said that Republicans believe the $34 billion UI package should be offset by tapping unused funds from last year's fiscal stimulus bill.

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Testicular Cancer's picture

Any tax friendly nations outside the US?

Ragnarok's picture

Plenty, but are you American? If so, you'll have to renounce your citizenship to reap the rewards.

Ragnarok's picture

Americans are taxed on their worldwide income based on citizenship, where a country like Canada is taxed on residency.  Becoming a resident of a low tax country is FAR easier and quicker than becoming a citizen of a low tax country.

UncleFurker's picture


Yes. And if you pick a country such as Panama, you only pay tax on income you earn within the borders.


If you want to stick with English (even better, the Queen's English) New Zealand gives migrants a 4 year tax holiday on overseas earned income.



Ragnarok's picture

Panama is great for Canadians, there are multiple ways to become a resident within 3 months.  It also has a tiny population and only one major urban center.


As for income tax, you are correct, 27% on income produced inside of Panama, not including interest, CDs, foreign equities, foreign bonds etc.  So if you had a decent amount of passive cash-flow from outside of Panama you could basically live tax free.

WaterWings's picture

They sure keep the hooks in:

The American Jobs Creation Act (AJCA) of 2004 amends Section 877 of the Internal Revenue Code (IRC), which provides for an alternative tax regime for certain, expatriated individuals. Amended IRC 877 eliminates the tax avoidance criteria for imposition of the expatriation tax on certain types of income for 10 years following expatriation, and creates objective criteria to impose the tax on individuals with an average income tax liability of $127,000 for tax year 2005 (or higher amount for later years) for the 5 prior years or a net worth of $2,000,000 on the date of expatriation. In addition, it requires individuals to certify to the IRS that they have satisfied all federal tax requirements for the 5 years prior to expatriation and requires annual information reporting for each taxable year during which an individual is subject to the rules of IRC 877. Further, expatriated individuals will be subject to U.S. tax on their worldwide income for any of the 10 years following expatriation in which they are present in the U.S. for more than 30 days, or 60 days in the case of individuals working in the U.S. for an unrelated employer.  Finally, even if they do not meet the monetary thresholds for imposition of the IRC 877 expatriation tax, the new law provides that individuals will continue to be treated as U.S. citizens or long-term residents for U.S. tax purposes until they have notified the Secretary of the Department of State or of Homeland Security of expatriation or termination of residency.  The implementation date of this provision is retroactive and applies to expatriations occurring after June 3, 2004.  The expatriation is not effective until the notification and tax satisfaction certifications are filed with the IRS and the Department of State or of Homeland Security.,,id=97245,00...

If you are long precious metals you should also buy good rifles while you still can:

Mad Max's picture

Not to mention an exit tax when you do so...

And perhaps more importantly, huge hassles in having an ordinary life in another country while you're setting up there and trying to gain citizenship.  Not many places where you can move in and become a citizen the same day and therefore be able to renounce US citizenship right away.

The trap is fairly well set and getting tighter.

ejmoosa's picture

In a nation where non-citizens are treated better than citizens, citizenship ain't what it used to be.

LeBalance's picture

and it hasn't been since the Civil War when the 14th Amendment equated citizen and slave by removing the rights of the citizen.  This manuver and the language that performed it is explained here:

Iam_Silverman's picture

"where non-citizens are treated better than citizens"

I wonder if I could declare myself to be an illegal alien?  Would I have to renounce my American citizenship first?  I guess so, dumb question.

Still, that is a great idea!  from now on I will be an illegal alien!

Pladizow's picture

Its what many Billionairs have done.

Upon renouncing US Citizenship, a large portion of net worth is immediately lost to taxes.

Buy an island, become your own sovereign and set up your own constitution and tax laws.

Then apply for an E2 visa.


puckles's picture

There are strict limits to the taxation, and if you are married, greater limits may apply.  For further information of a cutting-edge sort, look at the Sovereign Society,, and  They have the up to date information on these issues.

hedgeless_horseman's picture

Let's pick some place with a nice climate and make it so.  What is the story with Gibraltar?

puckles's picture

Malta is equally nice, and nobody thinks of it aside from Brits...unfortunately, they do use the Euro...

jkruffin's picture

See you all at DOW 13k,  no used in fighting the FED anymore if I were you guys,  its obvious the plan is the plan and it will be executed.  The worse news we have seen in a year, and market moves higher.  Wall Street will be taken care of, while Main Street falls into the abyss.

Caviar Emptor's picture

That is indeed the plan. Then Main Street will be at the whim of Wall Street. We've made our choices in this country.

ZackAttack's picture

If they can just print everything they need, why are we even paying taxes?

Ragnarok's picture

And let the serfs go free? I don't think so.

Divided States of America's picture

How do I move from serfdom to the elite?


Looks to me that only the NO Income group and the Wealthy gets the bailouts.

Ragnarok's picture

1) Put yourself outside of the law

2) Make a shit-load of money

3) Suck the right dicks

4) Marry into old money or make ungodly more amounts of money

puckles's picture

To ensure that those whom they wish to further enslave i.e., the few productive people left (and garner votes, of course, from the Federally employed, and their cognates) understand who's the boss...see this:

uno's picture

Does it matter anymore in USD.  How much is it in AMEROs.

Gary Busey's picture

"It extends funding through Nov. 30"

...convenient timing

midtowng's picture

Very convenient. After the election who needs the serfs anymore?

TheGoodDoctor's picture

They'll need them in 2012.

jkruffin's picture

The money to pay for it should come from the sale of Citigroup shares.  They have enough shares to dump right now to pay for the entire bill.  Obammy needs to put his foot in Geithners ass to sell all those shares now.  Who cares if Shittybank's stock drops to a dime,  get the people their UE.  They bragged all year long how much money they made from Citi shares and TARP interest right?  Then there is your money. 

Unless of course, the whole thing has been nothing but a lie.  Gee ya think?

Caviar Emptor's picture

Shhh. Can't piss off Saudi Royals, ya know

Moneygrove's picture

bush daddy will get a call from the king !!!

Number 156's picture

Thats it. Im selling my house, buying a Van and quitting my job so I can live down by the river.

Village Idiot's picture

Ah yes, down by the river.  How about an occasional motivational speaking gig to cover propane?

Hansel's picture

Rubber tramp sounds tons better than fiat slave right now.

Gubbmint Cheese's picture

F*ck these hft ramp jobs... the end game will be messy 

as the old saying goes..

you can make money in the market if you are a bull, and you can make money in the market if you are a bear.. but if you are a pig, you will always get slaughtered.


firstdivision's picture

50DMA on SPX is only 5 points away.  God is it good to be living in these insane times.  I would be scared of reality if everything wasn't so fairy tale to keep me sedated.

Testicular Cancer's picture

I am Jack's trailer trash.

virgilcaine's picture

permanently unemployed.. next gov will move them to  a unemployed holding camp.

DonnieD's picture

At this rate it won't be long until unemployment surpasses Medicare and Social Security as a gov't expense.

Moneygrove's picture

Does look like the bush tax cuts are making any jobs ! they have to go !!!

tecno242's picture

fuck it.


i'm quitting my job.. i'll just sit on my ass for 3 years.. that's what.. 36K free dollars...

f yeah.

hedgeless_horseman's picture

3 years?  I will take the over.

uno's picture

add on 500/month approximately since you will be one of the 40,000,000+ getting foodstamps, and then there is mediaid and lower electricity and other programs you qualify for.

Moneygrove's picture

Doesn`t sound like the bush tax cuts made any jobs !! 

midtowng's picture

36K stretched out over 3 years isn't much.

hedgeless_horseman's picture

Unless you are the one paying it in additional taxes.  But you probably don't pay income tax, do you?

midtowng's picture

Who doesn't pay income taxes?

Are you trying to say that anyone who doesn't oppose unemployment benefits when there is double-digit unemployment must have spent their lives on welfare? Is that what you learn from watching Fox News?

hedgeless_horseman's picture

Who doesn't pay income taxes?

47% Of Americans Don't Pay Federal Income Tax.  45% think the tax system is just fine.  Clearly you are one of them.


midtowng's picture

"Clearly you are one of them."

I see that you hate "them". Them seem to be everywhere these days. However, I'm sure you will be disappointed to know that I paid income taxes last year, and every other years since I entered the workforce in 1985. So you'll have to find a different reason to hate me...which I'm sure you will.

RKDS's picture

I just don't get that because I don't make anywhere near six figures and I still end up in the 25% federal bracket.  Hell, I even paid taxes when I had a summer job in highschool.  This has got to be a warped statistic, of at least the caliber of "core" inflation and "official" unemployment.