An election is right around the corner, so politicians are naturally going to throw out there some pretty bizarre proposals. Given what voters believe, it isn’t possible for every proposal to be useful and still appeal to us for our votes. Nevertheless, Joe Biden’s tax proposals manage to be terribly flawed in both speculative theory and in real world practice, which is probably the best he’s ever done throughout his 47 years of doing nothing of significance while in office.
Things that come to mind, outside of the bribery sort for votes, are about raising the corporate tax rate along with raising the income tax rate, both of which would destroy growth for the private sector while temporarily growing the government sector, of which will be squandered on the bribery offers made to get elected. That’s the Democrat way.
According to the Tax Foundation, Biden’s tax plan is just flat out wrong. The mainstream news media won’t even get into the details, because their mission isn’t to held American voters select the candidate with the best policies that will make their lives better – nay nay – their mission is to get Donald Trump out of office even at your expense.
The point is, companies do not pay taxes. Even when they’re increased by a Democrat. Tax increases are always pass on to the consumer as they are added to the cost of the product or service offered. Otherwise, quality of product or service down down or the company goes out of business, which is the case with a lot of small businesses that cannot handle a major tax increase. There is no one here but us to pay taxes — the dolphins aren’t coughing up for Medicare and the timber do not pay for the Pentagon now, do they? We can tax, in name, groups of people like a corporation, however, it’s only in name. We’re nonetheless taxing people in the long run.
So, the concept that “corporations” should pay tax is silly simply because they don’t and can’t pay taxes, we are taxing some group of workers instead. That’s just plain common sense.
Now let’s get to how Biden’s tax plan is horrible for the real world. The Biden campaign wants you to believe that increasing taxes on people who earn over $400,000 a year, on top of taxes on capital gains and dividends for people who make over $1 million a year, will change to the new higher income tax rate of 39.6%. Yet, they want to tax those two different types of income at the same rate as income taxes, when what we need is a rate on dividend and capital gains taxes to be lower than income taxes, otherwise, there will be much less incentive to go into business.
Incidentally, this is how Democrats always get away with saying that a school teacher shouldn’t have a higher tax rate than a millionaire. They don’t. The dirty little trick is the Democrats compare the school teacher’s income tax rate to the millionaire’s capital gains tax rate, which is lower. They leave out the fact that the millionaire already pay income taxes on the money he invested that is then taxed again as a capital gain.
President Donald Trump cut taxes for the individual income tax and the corporate tax and capital gains taxes. The individual tax cuts allowed American workers to keep more money that they earned each week. The corporate tax rate cut allowed corporations to expand their businesses, which in the end meant more jobs. The capital gains tax cut caused more people to get the incentive to invest.
Here’s the thing about raising the corporate tax rate. Democrats love to tell their constituents that they “stuck it to the rich guy” by increasing their corporate tax rate, but what they really did was stick it to the consumer, because the dirty little secret is that corporations DO NOT PAY TAXES in the same sense that we individually do. What happens is when the government increases the tax rate on a corporation, the company passes that increase along to the consumer by increasing the cost of a product or service that the company provides. If they didn’t they would go out of business. So, when the Democrats want to make you believe that they care about the little guy by screwing the rich with higher taxes, they are in fact screwing the little guy, because in the end, it’s the little guy who is going to get hit with the negative effects of the tax increase.
When you increase the capital gains tax rate, you are causing many people who would invest in businesses to get out of the game. First off, the money that they invest was already taxed. They invest the money, then get a return on the investment, and government taxes any gain on the investment. When you increase the capital gains tax rate you’re reducing the amount of investment, because it’s not worth the lower returns realized, once the tax rate goes up.
All three moves, increasing taxes on working class, increasing the corporate tax rate, and increasing the capital gains tax rate all hurt the little guy in the end.
Biden lies outright when he says he’s not going to increase taxes on anyone who makes over $400,000 a year, yet he has on multiple occasions said that he’s going to repeal the Trump tax cuts. Either he’s a dope, or he’s being lied to, because if everyone who works got a tax cut and it caused them to be able to keep more of what they earned, then when you repeal the Trump tax cuts, everyone who got that tax cut will have it taken away, and their taxes will go back to what they were before, which means their taxes will be raised and they will take home less money that they earn.
The problem all along has been that Republicans want the private sector people to grow the economy and reap the rewards for their own hard work, while the Democrats want to control the economy, so that they get the credit, and they get to dictate who can do what, and who gets to earn how much. Another dirty little secret is when you lower tax rates you increase the number of jobs, and when people fill those jobs they pay taxes, so the more people who pay taxes on their income, the more money government gets. Democrats all know this, but their motivation is more to control your life and how you live through the tax code.
How do you avoid government controlling your life through the tax code? That’s easy. Vote for Donald Trump and every Republican on your ballot in next month’s election.