Late last week after Joe Biden signed the $1.9 trillion Democratic constituency payoff bill disguised as “COVID relief,” most Americans started getting $1,400 payments from Uncle Sam.
That doesn’t seem like much money given the fact that tens of millions of Americans suffered lengthy financial hardship over the past year governors shut down their states and as Democrat governors continued to keep their states essentially locked down for months afterward.
But even that paltry amount of money will seem even less if Democrats pass Biden’s new tax legislation, which contains the largest increase since 1993.
The Daily Caller reports:
“The Biden administration is allegedly contemplating a series of tax hikes on high income earners and corporations that could potentially yield more than $2 trillion in revenue over the next decade.
Bloomberg News first reported Monday morning that President Joe Biden will likely outline the plan during his joint session address to Congress, expected to take place before the end of the month. The not-yet-finalized proposal would mark the first significant tax increases since former President Bill Clinton’s 1993 tax bill.
Four people familiar with the discussions told Bloomberg that the president’s proposal, while outright rejecting Sen. Elizabeth Warren’s wealth tax, would raise both the income tax rate for filers making more than $400,000 per year and the corporate gains tax for filers earning more than $1 million per year. Furthermore, Biden is expected to pursue a 7 percent increase in the corporate tax rate and limit ways for sole proprietorships and other “pass-through” businesses to avoid paying corporate taxes.”
“So what?” ordinary Americans may be thinking. “I don’t make that kind of money and I sure don’t own a large corporation.”
Here’s the ‘so what’ — this tax scheme will raise the cost of just about everything under the sun, from the products we buy to the gas we burn to the electricity we use to heat and cool our homes and the food we buy to eat.
Aside from taxes being a necessary evil (to an extent), taxes raise costs of doing business while taking money out of the economy that would otherwise be spent in it.
If corporations are taxed more, they will pass those costs back onto consumers. That’s just an automatic; that is the equal and opposite reaction from a company or corporation every time their profit margins are hit (and taxes strike at the heart of profit margins).
“Do the rich actually pay for the higher taxes when they become law? Technically, the answer is yes. But the reality is that those costs are usually just passed on to other people or spending is restricted,” Marcus Hawkins writes at ThoughtCo.
“Either way, the net effect is often a huge hit on the economy. Millions of small and medium-sized businesses fall into the target zone for higher taxation. If a small business is hit with higher costs due to an increase in fuel prices or raw goods, those increases are usually just passed on to the consumers, and those with less disposable income see their costs rise to sometimes devastating levels,” Hawkins notes further.
Put more succinctly, Biden’s tax increases would cost average American families another $2,000 a year, according to an analysis last year.
Again, so much for that fourteen hundred bucks.