Tax cut

• During an address in Maryland, the president contrasted Bidenomics with Trumpian “MAGAnomics” that would involve tax-cutting and spending reductions.
• He decried trickle-down policies that had, “shipped jobs overseas, hollowed out communities and produced soaring deficits”.
• Changing voters’ minds about the economy is one of Biden’s biggest challenges ahead of the 2024 election.
• Even 60% of Democratic and Democratic-leaning respondents were “seriously” concerned he would lose in 2024.

What is Bidenomics?

• His answer, repeated in his Maryland speech, is to grow the economy “from the middle out and the bottom up”.
• To this end, Bidenomics is centred on three key pillars: smarter public investment, growing the middle class and promoting competition.
• On investment, Biden’s approach fundamentally challenges the argument by the right that increasing public investment “crowds out” more efficient private investment.
• Bidenomics argues that targeted public investment will unlock private investment, delivering well paid jobs and growth.

The results so far

• Over 13 million new jobs have been created, though much of this can be perhaps attributed to workers resuming employment after COVID.
• Total US jobs The IMF predicts the US economy will grow 1.8% in 2023, the strongest among the G7.
• The US also has the group’s lowest inflation rate, although it rose in August.
• On the closely watched core-inflation metric, which excludes food and energy, the US is mid-table, though improving.
• One consolation to the Democrats is that voters’ gloom is partly related to interest rates, which are probably close to peaking.

• CHANDLER, Ariz., May 04, 2023 (GLOBE NEWSWIRE) -- (NASDAQ: MCHP) – Microchip Technology Incorporated, a leading provider of smart, connected, and secure embedded control solutions, today announced that its Board of Directors declared a quarterly cash dividend on its common stock of 38.3 cents per share.
• Microchip initiated quarterly cash dividend payments in the third quarter of fiscal year 2003 and has increased its dividend 77 times since its inception.
• “Microchip’s financial performance in the March 2023 quarter was very strong, resulting in solid cash generation and further debt reduction and share repurchases,” said Steve Sanghi, Executive Chair.
• “Today, our Board of Directors approved a year-over-year increase in our dividend of 38.8% to 38.3 cents per share, up from our May 2022 dividend of 27.6 cents per share.

• CHANDLER, Ariz., Feb. 02, 2023 (GLOBE NEWSWIRE) -- (NASDAQ: MCHP) – Microchip Technology Incorporated, a leading provider of smart, connected, and secure embedded control solutions, today announced that its Board of Directors declared a quarterly cash dividend on its common stock of 35.8 cents per share.
• The dividend is payable on March 7, 2023, to stockholders of record on February 21, 2023.
• Microchip initiated quarterly cash dividend payments in the third quarter of fiscal year 2003 and has increased its dividend 76 times since its inception.
• “Today, our Board of Directors approved a year-over-year increase in our dividend of 41.5% to 35.8 cents per share, up from our February 2022 dividend of 25.3 cents per share.

• Washington, D.C., Nov. 22, 2022 (GLOBE NEWSWIRE) -- The U.S. Court of Appeals for the Sixth Circuit has affirmed a lower court decision prohibiting the Secretary of the Treasury from enforcing an unconstitutional Tax Cut Ban against the state of Tennessee.
• NCLA argues in its brief that it is both unconstitutional and dangerous to centralize control over state taxes in the hands of federal officials.
• Congress may tax and spend, but Congresss spending power has limits, and the Tax Cut Bans spending condition on the states exceeds Congresss authority under the Spending Clause.
• NCLA released the following statements:
  Congresss Tax Cut Ban is not only unconstitutionalit is unworkable.