Liberation Day. AKA Tax Day
Welcome to another episode of “Morning Coffee” with me, Professor Alex, as today’s subject is “Happy Tax the Consumer Day.” Wait. Sorry, I got that wrong. It’s Liberation Day.
Now, I’ve been away for about a week—I haven’t filmed any videos or blogged because I had a sinus infection. I’m still recovering, so you’ll probably notice how nasal my voice sounds. I might even have a coughing fit and need to cut and edit a part of this, which is something I’ve never done before. I’ll figure it out.
Listen to this podcast.
Let’s start with some good news: a shoutout to Senator Cory Booker for breaking Strom Thurmond’s filibuster record yesterday. For context, Thurmond’s record was set while filibustering against the Civil Rights Act. He was a racial segregationist, so there’s a bit of irony and karma in Senator Booker being the one to break that record.
Watching the last hour or so of Booker’s speech was inspiring—he was full of vibrant energy, ready to move forward. He got emotional several times, but it was powerful. Make some time to watch those video clips.
Liberation Day is Here!
Now, onto the lows: Liberation Day. George Orwell would be proud of all the doublespeak. President Trump is supposedly holding an event at the White House Rose Garden, which reminds me of his first term when he did something similar.
Back then, he claimed they had “overthrown” Obamacare. I remember being so confused—how was that even possible? Legally, all they had done was secure enough votes to move forward on a procedural issue. They hadn’t actually repealed the Affordable Care Act, but the event was all show. That’s President Trump for you, actually claiming that Obamacare was “done.”
Speaking of theatrics, let’s talk about Kristi Noem and her “Instagram tour” of the prison in El Salvador. She’s wearing a $60,000 watch and showing up at raids in a bulletproof vest. It’s all for TV—there haven’t even been any shootouts during these operations. It’s great for optics but not for reality or life.
Meanwhile, the United States has made the list of places not to visit—places deemed unsafe. I know people in Miami who are leaving or have already left. Some are even moving to Canada or Latin American countries to escape all this, and some of them are U.S. citizens. Think about that.
Unfortunately, ICE is deporting individuals who they shouldn’t legally, such as in the case of Kilmar Abrego Garcia. Normally, one could make the argument that if you think a citizen can be deported, you confirm the person isn’t wearing a tinfoil hat. But guess what? It’s already happened. The sad part is the DOJ arguing that now that they realize an “administrative error” was made, unfortunately, the courts don’t have jurisdiction since the U.S. citizen is now in a prison in El Salvador.
It is what it is. This is what people voted for, and now we’re dealing with the consequences. Of course, to rationalize their votes, some will argue, “We didn’t vote for this.” Unfortunately, yes, you did. You can’t say you weren’t warned.
You Will Be Liberated from Your Money
Let’s talk about Liberation Day. As I’ve joked before, what it means. My mom always said, “What do you want me to do? Cry?” Those are the two options, right? We can be serious, but those are the two options: laugh or cry.
With this doublespeak surrounding Liberation Day, you’re supposedly breaking free—but really, you’re just being liberated from the money in your pocket. Liberation Day is nothing more than Tax Day. That would be the proper name. Talk about doublespeak.
Let’s be clear: If you don’t understand that tariffs are taxes passed on to consumers, I don’t know what to tell you. Maybe you’re headfirst into Trump and the MAGA cult, but everything you do should be to help your situation—it’s that simple.
If you think paying more for stuff is patriotic, I don’t know what to tell you because it’s really not. If it were, shouldn’t billionaires be paying more so they could be more patriotic than us? That’s where critical thinking comes in. It’s not patriotic for me to pay 25% more for a car—that logic doesn’t hold up.
Now, supposedly, the “Liberation Day” event will be held at the White House Rose Garden, where President Trump will say we’re “liberated” and claim trillions and trillions of benefits. No credible economist is saying this. Peter Navarro, for example, is not a credible economist—that’s well-documented. His economic theories have never been peer-reviewed. He’s written plenty of books, but top economists don’t believe what he has to say.
As for the recession, which seems unavoidable this year, I’ve written about it before. You’ll see top economists from JP Morgan Chase estimate a 40% chance of a recession. Jeffrey Gundlach at DoubleLine Capital said 50%, and Goldman Sachs is at 35%. Let’s be clear: there’s no real difference between 35% and 40%. The debate isn’t whether we’ll enter a recession—it’s just about the odds, and they’re not good.
We need to be prepared, and being prepared means being informed. Don’t fall for the doublespeak about taxes or tariffs being passed on to importers or exporters—it’s not true. The same applies to Liberation Day.
If you’re going to fall into the idea that it’s patriotic to pay more for things, then that’s on you. I read an article the other day where Harris Faulkner from… of course, Fox wants the White House to spin the trillions lost in the stock market and destroying people’s pensions as a sacrifice for the “war effort.” What war? I don’t know. Maybe the war on stupidity.
Here’s the problem: we’re not at war. President Trump likes to throw that term around loosely, which is why he might invoke the Insurrection Act. We’ll find out on April 20th.
Apparently, his cabinet is going to decide whether to implement it. If they do, I’m not into conspiracy theories, but if it’s not martial law, I don’t know what it is. And chances are, it’ll only apply to blue towns, blue cities, and blue states. If that’s where we’re headed, I don’t know what the conclusion will be, but it won’t be good.
Now, back to this idea of patriotism. If you’re close to retirement or already retired, and your 401(k) has tanked, being told it’s “patriotic” to sacrifice your life’s earnings is insulting. Seventy-year-olds don’t go to war—it’s that simple.
Someone who’s worked hard their whole life, who’s now collecting from their IRA or 401(k), is being told to make sacrifices for a war they’re way past fighting. Their entire retirement savings have gone down the drain. What options do they have at 70, especially if they’ve been retired for years? None. They could lose their home, their car, or even file for bankruptcy. That’s why we’re seeing a rise in what’s called the “gray bankruptcy,” where older folks are filing for bankruptcy at record rates.
So, this idea of patriotism equals being broke—why don’t all the rich people give away their money and live at the same income level as the rest of us? Because they’re not stupid. To think otherwise is, frankly, naïve. That’s why I say you have to be informed. It’s just that simple.
Look Around You. What Has Improved? You Think Liberation Day Will Make it Better?
Just because President Trump says it’s Liberation Day and claims we’re getting rid of the IRS doesn’t mean it’s true. People get excited, thinking they won’t have to pay taxes anymore, but common sense should tell you otherwise.
Today is a sad day in history, almost canceling out what Senator Cory Booker achieved yesterday. The highs and lows—that’s what we’re experiencing. And what we’re experiencing hasn’t fully hit us yet. Those of us in the private sector might be okay for now, but talk to those who work for the federal government. Many have already lost their jobs, and that’s going to have ripple effects. Less revenue will flow into businesses where they live, and that impact will be immediate.
Remember when 200,000 federal probation officers or employees were fired? If there is a new court order giving them their jobs back or any changes, I apologize for not knowing the details—it’s hard to keep up since there are 600 million cases filed. Then again, that’s by design. Steven Bannon calls it “flooding the zone.”
But where it’s the 200,000 probationary employees, or the IRS, or any other federal government agency, they’re already feeling the effects. For the rest of us, it’ll take time, but we’ll feel it, too. These are just the first steps toward an economic recession.
Take the Department of Education as an example. They provide funding at the state and local levels, averaging 11% per district. If that 11% of revenue is lost, where does the money lost come from? It doesn’t. Districts will have to make cuts, fire people, raise taxes, or do a combination of all of the above. And that means we’ll all be nickel-and-dimed to death.
Florida is already making moves in this direction. They’re trying to pass laws allowing teenagers to work longer hours, even without lunch breaks. Why? To compensate for the loss of undocumented immigrants or those who’ve been deported. In Jacksonville, Duval County is increasing utility costs. Florida is also pushing for front license plates—why now? It’s another way to generate revenue and prepare for the financial strain ahead.
The problem is, if you’re paying more for products and getting nickel-and-dimed at the city, county, or state level, how do you make up the difference? Let’s say your expenses increase by $200 per month—that’s $2,400 more per year. If you can’t make up that difference, you’ll end up $2,400 deeper in debt. Over four years, that’s almost $10,000 in additional debt.
The question is, can you get out of it? That’s why I keep saying you need to be prepared. This might mean making personal cuts—where can you cut enough to at least limit the damage? If your income isn’t going to increase, which is unlikely, you have to find ways to adjust. That’s all you can do at this point.
The Costs of Isolationism
Top economists and financial firms are saying a recession seems unavoidable. This so-called “Liberation Day” doesn’t help anyone. Anyone claiming otherwise is either naïve, has drunk the Kool-Aid, or has their own agenda—it’s not based on financial reality.
So today is a sad day in history with Liberation Day. Let me put it this way: What do you think was one of the causes of the Great Depression? It was a “liberation day” of sorts—when the U.S. taxed the hell out of other countries and hit them with tariffs. Isolationism contributed to the economic collapse. Right now, we’re just talking about a recession, but we don’t know how far this could go. If things don’t change, we could surpass the Great Recession of 2008 and the mortgage foreclosure crisis.
This is just the tip of the iceberg. Whether it’s Goldman Sachs’ prediction at 35% or JP Morgan Chase at 40%, there’s no real difference between those numbers—they’re both bad. The only question is, how bad will it get?
I hate to sound like the gloom and doom type; it’s not my thing, but look around. People are losing their jobs. Retirements have tanked. If you’re 35 and your retirement fund has taken a hit, you have time to recover. But if you’re 60 or 65, counting down the days to retirement, and your savings have plummeted, you’re out of time. That could mean selling your house or making major financial changes.
Keep that in mind. The country is not on track to do anything positive financially. I know it’s difficult to hear these things sometimes, but it’s like when I was practicing law. I’d tell clients, “What do you want me to do? Lie to you?” I’d say, “I’ll tell you the truth first because ethically I’m obligated to, but if you want me to lie, I’ll do that too, afterwards.
I’d ask clients, “What if I were a doctor, and you had two months left to live? Would you want me to pretend you’re healthy and have another 20 years, or would you want me to be honest and say you only have two months left to live?” They always said the doctor should be honest. This is no different.
We have to hear the truth and be prepared. We can’t live in a bubble because that bubble is what got us here. Nobody’s got your back—you can only have your own back. You’re the only one who can protect yourself and act in your own self-interest. It’s not the government, and it’s definitely not the Trump administration, which is just feeding you lies. You have to be prepared.
At the end of the year, I hope you’re all ready. If there is a recession, I hope you can say, “I saved money, I cut my expenses, and I’m good.” But I have to be brutally honest—it is what it is.
Updated:
June 5, 2025.
The U.S. Court of International Trade has ruled that President Trump does not have the authority to issue tariffs on dozens of countries as was done with “Liberation Day.” Tariffs against China, Mexico, and Canada were also blocked. The Trump administration claimed it was based on drug trafficking and illegal immigration.
Take care, enjoy your coffee, and spike it if you need to.
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