Liberals assume, as a simple matter of obvious fact, that they are smarter than anyone who is not a liberal. There is no one who is more sanctimoniously smart than a liberal who has “studied” at a prestigious school.
Why then do they demand governmental action that doesn’t work?
Biden has proposed a tax plan which would raise the corporate income tax by 33%. He also wants to raise taxes on international corporate income, and on small businesses.
Oh joy! Someone is finally going after the fat cats. They obviously stole their wealth from low-income people, and as we recently learned, they stole it from minorities who have been unjustly victimized.
It’s a scam. Big Business Inc. does NOT pay taxes. Why is that so hard to understand? It is also an insulting scam because it assumes that you, a voter, are stupid.
No … no, you might be saying, “big” business would pay the taxes out of their own rich pockets. That idea is incredibly naïve; the real world doesn’t work that way.
Ask yourself a question: If a large corporation has a 33% increase in taxes, where does the money come from?
First, they could raise prices on their products. This is essentially a hidden sales tax. It also creates inflation, which is equivalent to stealing from your salary and bank account.
Second, they could reduce their work force. Instead of raising prices, they could lay people off, not pay them more, or get rid of any perks for workers. This is essentially a hidden tax on labor.
Third, they could decrease the quality of what they produce.
Fourth, the business could fold. Usually bankruptcy follows, which reduces the ROI value of lenders and investors.
An increase of taxes on business is actually a sales tax on consumers, a hidden tax on labor, and a lowering of the standard of living.
The argument that more taxes will help the average person because government now has more money would be a joke … if it wasn’t so sad.
One way of seeing through the haze is to ask what you would do if you owned a business. Suppose you had a nice hotel. Your taxes are raised by over 30%. What would you do?
Your choices are limited. You could raise the room rate, but you can only go so far with that. You could get rid of some of the staff. Give maids more rooms to clean, but don’t pay them more. That will go over well. You could postpone needed improvements or repairs, but not if you were raising your rack rate at the same time. And then, what about the people who make a living repairing and upgrading businesses similar to yours?
If you are the only owner, you could claim all profits from your business as your private income, which is called a pass-through, and it might save you some money. However, Biden wants to raise the taxes on those incomes as well.