Over the last several months, everything from lumber to gasoline has gone through the roof price-wise. With government spending, foreign wars, and supply chain issues, Americans are now paying 8.5% more each month for the goods they use every day.

Now it turns out they’re also paying record-high taxes.

Apparently, an unprecedented amount of income taxes were collected recently. The upsurge was spurred in part by our business and investment sector… but driven mainly by individuals.

In fact, individual income taxes will likely exceed $2.6 trillion – over 10% of the entire economy – according to the CBO. The Wall Street Journal explains:

“Congressional Budget Office officials identified several factors for further study. Perhaps, they said, a greater-than-usual share of capital gains were short-term gains taxed at rates up to 40.8% instead of 23.8%. Perhaps income grew faster than expected for those in the highest tax brackets compared with others, which means more income than forecast would be taxed at higher rates. The administration is waiting for more granular data to come in as it analyzes what is happening, said Lily Batchelder, assistant treasury secretary for tax policy.

“It is individual income taxes – more so than corporate or payroll taxes – that are most notably above forecasts. Individual income taxes include those levied on wages, capital gains from investments, and business profits reported on owners’ personal tax returns.”

This serves as further evidence that 2020’s extreme stimulus measures are impacting the U.S. well beyond what officials expected. While those checks weren’t taxed directly, the money flowed from consumers to businesses, investors, and beyond.

And each time money changes hands, it creates a taxable event.

More Non-REIT News to Know About 

Aside from simple consumer behavior, the economy could be experiencing speedier growth than we estimated as far as gross domestic product (GDP) and gross domestic income (GDI).

GDP – which accounts for spending by consumers, governments, and industries on goods and services – indicated the economy contracted in the first quarter. But gross domestic income, which examines factors such as wages and profits, revealed 2.1% growth.

 With GDI outpacing original estimates, the economy could actually be a bit stronger than we thought, which could account for the increase in taxable income. Though, to be as accurate as possible, there are so many factors in play, including some really strange things happening.

Perhaps with a banner year of income taxes, the government will consider spending this influx of cash wisely. We can only hope since the American people could really use a win. 

Tesla (TSLA) owner and soon-to-be Twitter (TWTR) head, Elon Musk, has made grave comments on our economy for the last several weeks. Unlike many in Washington, he expects a perilous downfall from here.

On Friday, the eccentric entrepreneur announced he’d be cutting his salaried employee base by 10% to better navigate whatever’s to come. So clearly, he’s serious about his assessment. So were the investors who sold 10% worth of Tesla’s value in response.

But others are pooh-poohing his concerns, which CNBC captured with this writeup:

“When asked about Musk’s negative comments, President Biden scoffed, noting that while Musk is projecting economic anxiety, Ford is increasing its investment in creating new electric vehicles, with 6,000 new union employees in the Midwest.

“‘So, you know, lots of luck on his trip to the moon,’ Biden jabbed.”

 Considering Musk’s already existing feuds with fellow billionaire Jeff Bezos, Bill Gates, and now Biden… I think I’m allowed to wonder if he’s the ghost of Trump’s Twitter account come back to haunt those that done him wrong.

The World According to REITs 

New York City REIT (NYC) announced the results of its 2022 Annual Meeting of Stockholders, which included a re-election or two.

For instance, it unanimously kept Elizabeth Tuppeny as its lead independent director, a role she’s held since 2014.

Michael Weil, Chairman, and CEO said:

“NYC’s stockholders clearly have recognized Elizabeth’s extensive real estate expertise and her many important contributions to NYC’s success. Following this gratifying election result, the board and management team are excited to build on NYC’s strong business momentum and further execute our growth strategy as New York City emerges from the pandemic. We thank our fellow stockholders for their support and are committed to building long-term value on their behalf.”

Stockholders also appointed PricewaterhouseCoopers LLP as the company’s independent registered public accounting firm for 2022.

With such a dynamic team of investors and top-notch accounting talent at its disposal, New York City REIT has positioned itself to continue operating its pristine portfolio of Manhattan-based properties in the best possible way.

This now includes 9 Times Square with its 13,500+ square feet and $650,000 of annual base rent that comes with a weighted-average lease term of 3.7 years.