Hidden taxes on Americans - another reason D.C. loves the Income Tax
While President Biden’s proposed budget may get him votes—who doesn’t like a free lunch, he’s being rather dishonest regarding how he’s going to pay for it. The President would like us to believe that the lunch really is free but in reality, it’s not.
Steve Moore is a member of the AFFT Advisory Board. He wrote an article for the Daily Caller addressing this issue.
Here are some of the points he made:
Steve Moore is a member of the AFFT Advisory Board. He wrote an article for the Daily Caller addressing this issue.
Here are some of the points he made:
- When I read through the details of Biden’s new multi-trillion tax plan, it’s hard to come up with any plausible explanation other than that he’s trying to make American industry less competitive. Biden’s tax scheme would hobble U.S. businesses with nearly the highest corporate tax rate in the world — and higher than our primary competitors.
- When the Trump tax reform lowered the corporate rate to 21%, it brought over $1 trillion back to the U.S.
- The White House estimates their plan will raise $500 billion over a decade from corporations. Of course, corporations are owned by 130 million Americans with 401k plans and other retirement packages. Not just the top 1% are going to get zapped here.
- Economist Kevin Hassett, who was Trump’s chairman of the Council of Economic Advisers, has shown that corporate tax rates are statistically inversely related to worker wages. Lower tax rates mean higher worker pay. So blue collar America will pay a large share of the burden of the Biden tax hike.
- The Biden economics team is in denial of the science. They reject the real-world evidence that high tax rates deter job growth and investment, and they pretend that the rich will bear all the burden of a tax that will hurt all American workers and consumers while benefiting our competitors around the globe.
While Steve points out the economic impact of Biden’s policies on labor and Americans that are invested in these “evil” corporations through their retirement plans, there is another impact that will affect us all. Higher corporate taxes will result in higher prices for everything we buy.
This is one of the most damaging aspects of the corporate tax. The corporation may write the check to Uncle Sam, but the money comes from the pockets of individuals. When corporate taxes go up, customers pay higher prices for the things they buy. Employees get smaller salaries and fewer benefits. Shareholders receive smaller dividends. People pay every cent of a “corporate” tax.
People look at Amazon and complain that it doesn’t pay taxes. Let’s assume that Biden forces Amazon to pay $10 billion in federal income taxes.
Obviously, Amazon doesn’t have $10 billion just sitting around waiting for the IRS to scoop it up. Their cash is to pay for current operations and to expand. They will need to raise this $10 billion by increasing the price of everything they sell to their customers. If they can’t come up with the entire amount by increasing prices, then they will have to find the remaining money by reducing their labor costs. That means laying people off, hiring fewer people and/or cutting salaries, wages and benefits for the people who work for them.
If they can’t raise it all through higher prices and reduced labor costs, the rest will just have to come out of their earnings. That would make the company less profitable and would drive the value of their stock down. Every American who has Amazon stock in their retirement plan would see their savings diminished.
CONCLUSION
As Steve clearly states, the choice is easy—do we want a system for funding the federal government that Steve Moore calls the “gold standard of tax reform”:
This is one of the most damaging aspects of the corporate tax. The corporation may write the check to Uncle Sam, but the money comes from the pockets of individuals. When corporate taxes go up, customers pay higher prices for the things they buy. Employees get smaller salaries and fewer benefits. Shareholders receive smaller dividends. People pay every cent of a “corporate” tax.
People look at Amazon and complain that it doesn’t pay taxes. Let’s assume that Biden forces Amazon to pay $10 billion in federal income taxes.
Obviously, Amazon doesn’t have $10 billion just sitting around waiting for the IRS to scoop it up. Their cash is to pay for current operations and to expand. They will need to raise this $10 billion by increasing the price of everything they sell to their customers. If they can’t come up with the entire amount by increasing prices, then they will have to find the remaining money by reducing their labor costs. That means laying people off, hiring fewer people and/or cutting salaries, wages and benefits for the people who work for them.
If they can’t raise it all through higher prices and reduced labor costs, the rest will just have to come out of their earnings. That would make the company less profitable and would drive the value of their stock down. Every American who has Amazon stock in their retirement plan would see their savings diminished.
CONCLUSION
As Steve clearly states, the choice is easy—do we want a system for funding the federal government that Steve Moore calls the “gold standard of tax reform”:
- That is so simple everyone can understand it.
- That shows the costs of the federal government on every retail receipt so all of us understand what we are paying.
- That helps U.S. companies compete with foreign competitors.
- That keeps jobs in the U.S. rather than exporting them to other countries.
- That permanently establishes the solvency of Social Security and Medicare.
- THAT IS THE LARGEST TRANSFER OF POWER FROM D.C. TO THE PEOPLE SINCE THE CONSTITUTION WAS ADOPTED.
D.C. is ignoring the one real solution that allows us to remain citizens and not subjects, the FAIRtax. The FAIRtax is simple, non-invasive, but most of all, IT WORKS!
Please go to this link to invest in AFFT and help us pass the FAIRtax. It’s an investment in your and your family’s future.
THE SOLUTION—PASS THE FAIRTAX!
Why would D.C. pass the FAIRtax and give up this almost unlimited source of donations? The only way that they will is if the rest of us demand it!
Isn’t it time to end this ludicrous tax collection system and the IRS?
There is going to be a vote on the FAIRtax in the House of Representatives.
We now have the opportunity to force all Members of the House to show where they stand. They can:
Please go to this link to invest in AFFT and help us pass the FAIRtax. It’s an investment in your and your family’s future.
THE SOLUTION—PASS THE FAIRTAX!
Why would D.C. pass the FAIRtax and give up this almost unlimited source of donations? The only way that they will is if the rest of us demand it!
Isn’t it time to end this ludicrous tax collection system and the IRS?
There is going to be a vote on the FAIRtax in the House of Representatives.
We now have the opportunity to force all Members of the House to show where they stand. They can:
- Vote for the present income/payroll tax system or for the FAIRtax.
- Support the corrupt income tax and the IRS or eliminate it. It can’t be any simpler than that.
- Hide the true cost of their government or pass the FAIRtax and show everyone the true cost of government on each retail receipt.
- Support the largest transfer of power from government to the people, the FAIRtax, or not.
If Members think that the FAIRtax needs to be amended to address a problem, then they can propose the change. Don’t let reject the entire bill because it has a perceived “flaw” that can be addressed.
HELP BRING ABOUT REAL TAX REFORM AND STOP FUTURE IRS ABUSES
By contributing (investing) $10.40 per month, you help provide a financial base to AFFT. If you can make larger contributions (investments), these will be used not for salaries, as we are all volunteers, but for the needed updates to our economic studies which will be vital for all future years.
Please go to this link to invest in AFFT and help us pass the FAIRtax. It’s an investment in your and your family’s future.
HELP BRING ABOUT REAL TAX REFORM AND STOP FUTURE IRS ABUSES
By contributing (investing) $10.40 per month, you help provide a financial base to AFFT. If you can make larger contributions (investments), these will be used not for salaries, as we are all volunteers, but for the needed updates to our economic studies which will be vital for all future years.
Please go to this link to invest in AFFT and help us pass the FAIRtax. It’s an investment in your and your family’s future.