Slow Joe has been telling lower income Americans that he will not raise their income taxes, instead he will sock it to those awful, ugly, big corporations. Further, if you have a large enough income to employ other Americans, he will tax the devil out of you. This has been the clarion call of Democrats for as long as I can remember.
Taxes on corporations are nothing more than a political trick to make you think you are not paying taxes. Frequently called hidden taxes because you, the taxpayer, pay for every nickel of these tax increases in the form of higher prices.
Do you really think that a corporation reduces its profits without reacting when a Democrat raises corporate taxes? If it isn’t obvious to you the answer is a great big no. The corporate pricing function goes into action and calculates how to charge more for its products so that earnings per share of its stock continue to rise every quarter of the year. You my fellow citizens fund every penny of those tax increases by a lowering of the purchasing power of your income. A great example of how evil these politicians are was when the tax on airline tickets was established and the law prohibited the airlines from separately showing the tax so you could not see it.
Worse yet, an increase in corporate taxes reduces the incentive to reinvest in business. When the socialist Obama Biden ticket was first elected, the business community shut down capital reinvestment like turning off a light fearing the threats that the campaign had made. There goes job growth for the next eight years of governmental uncertainty and it did not reignite until the day after Donald Trump was elected.
Further, corporations can, re-rationalize where they will locate facilities to make their products and from where they will provide their services. Think that’s wrong, how many sub-continent Indians have you tried to understand on your customer service calls? Corporate investment is today on hold by many American companies pending the election. Biden wins — they flee. Trump wins — they invest.
Likewise, many of those people making over $400,000 per year are small-business people whose business profits flow through their personal tax returns. They will choose to stop hiring and try instead to become more efficient. Not a good scene if you are looking for a job or already feel overworked.
The Democrats can lie to you but they cannot repeal the laws of economics or human nature or common sense.
Biden’s corporate tax plan will drive up your prices and drive away your employers. This is how Biden will make America poor again.
Robert Herford is vice chairman of the Vance County Republican Party.