GREAT NEWS!!!
JB and the Funky Bunch will be attempting impose a new $3T (as in trillion, you know, $3,000,000,000,000) tax increase!
Now that is just what we need! The sooner, the better. We will all be better off having much less disposable income.
This little initiative will include a tax increase for corporations (from 21% to 28%), small businesses and individuals! That is just what the economic doctor ordered. That little shut the economy down for a year thing that was allegedly done in our best interest because of the - you know -the Pandemic - failed to completely kill the economy. Now what we need to make everything better is a MASSIVE TAX INCREASE. Yes, that will help everything. And it may help pay for our new found guests; those weary travelers to whom JB extended a hearty invitation on all of our behalves.
Now, you have been told that only individuals who make more that $400,000 will see a tax increase. Well, that is what they originally said. As it was originally told, that would be $400,000 per person, but now - not so. It is now $400,000 per family. But, you know, things change.
So only the high wage earners, those swaggering around making $400K a year, will be impacted, right? No. That is not how this while thing works. If the cost of business increases (due to things like increased labor costs and higher taxation), all families and individuals (even those making less than $400,000) will see a significant increase in the prices (costs) they must pay for products and services. Why is that? Well businesses cannot operate (long term) at a loss, and because increased taxes increases a businesses costs, it reduces their profit. Wow, that doesn't sound too good for the business, or the consumer.
What happens next?
In the case of corporation, a 7% increases in taxes will have to be offset somehow, right? Yes, it is the fiduciary charter of most businesses to maximize the wealth of their shareholders. What will these corporations do, you ask? You guessed it - the increased costs will most certainly result in increased prices they must charge to consumers. Businesses must charge higher prices to customers (that means, you and me) to retain the same level of profitability (failing which, stock prices drop - and that is a whole other mess). Oh, by the way, when prices increase, so does the amount of sales tax you will pay. Higher prices and higher sales tax. That sounds bad.
How are we to afford these more expense's goods and services if our taxes and living costs increase? Won't we have less buying power? Won't we see a reduction in our disposable income? Yes, you will. So, higher prices but less disposable income. That sounds bad.
But, "Corporations are bad, and they deserve to pay more", we've been told. Here is a novel question. Who do corporations employ? What percentage of the work force is employed by a corporation. (Go ahead and look, we'll wait). The answer is, in technical terms, a crap load of people. If the corporation's profit drops, will these bad corporations be able to afford to hire and promote and increase the salaries of their employees? No. In realty, they will be forced to reduce headcount. Well, either that, or they will offshore your jobs to low labor market countries. Wait, that seems contrary to our economy benefitting our citizens the most. Yes, that is correct, and that sounds bad.
But what do these bad corporations do anyway? They make the goods and services you buy. If their costs increase, so will your prices. Bad, right?
Lets see if we can get this right. Many businesses are now toppling at the point of insolvency, due to the helpful shut down of the economy. Imposing higher taxes is very likely to push many of these businesses over the brink. What about cutting costs, you say? Well, the most variable and controllable cost of almost every businesses (especially in the short term) is direct labor. So, prior to going bankrupt, these businesses will lay off employees. That's bad, you say.
But wait a minute - hold on - aren't we talking about increasing the minimum wage to $15? Yes, we are. And- guess what? That will actually make matters even worse. In practical terms - for those who are laid off, their minimum wage just became $0. I know, I know - here is what they will do: They will go on unemployment, won't they? Yes, they will. Lets think about that for a minute - how is that whole unemployment thing funded? You guessed it. Open your wallet.
As more people become unemployed, more will file for Government assistance. Here is something you might ask: Which party is the champion of Government entitlement and hand out programs? Well, that is the Democraps, right? Aren't they the ones who want to increase our taxes? Yes, but the more everything turns to economic crap, the more the likelihood that the Democraps will be re-elected. How can that be? Voters are unlikely to bite the hand that feeds them.
Oh, so over time - people will become more dependent on Government subsidies, is that it? Exactly.
Wait, I was told there would be no math. Sorry.
See, this whole thing will turn out to be the gift that keeps giving (from your bank account).
But wait, there is an added bonus: To those having no economic sense whatsoever, the Democraps get to look even more magnanimous by doling out money on ill-advised pork-belly programs and other social boondoggles.
In other words, they get to look magnanimous and generous by spending money they have sucked out of our wallets.
Everyone loses; well, almost everyone.