Joe Biden and your budget: How will he impact taxes, health care, more

The Biden tax and spend plan is not totally unreasonable and certainly does not come close to the Sanders ideas. However, there are problems.

Most of his ideas require legislation, but more important there are long-term consequences. New entitlements are created, new long-term liabilities are created AND his proposed new taxes only impact Americans earning above $400,000 per year.

Analysts say those new taxes are insufficient to pay for his plans regarding health care, education, child credits, etc.

But there is more to the reality of promises and budgets and taxes. How and who will pay to make Social Security, Medicare and Highway trusts solvent, let alone answer the cry’s for higher Social Security and Medicare benefits?

The promise of more for the middle class and lower income Americans, all paid for by business (*) and five percent of Americans is false, unless you are willing to accept higher and higher national debt and its consequences affecting everyone.

Source: Joe Biden and your budget: How will he impact taxes, health care, more

(*) Higher taxes on businesses are simply higher indirect taxes on consumers.

7 comments

  1. About the footnote :”(*) Higher taxes on businesses are simply higher indirect taxes on consumers.”, it isn’t so when the tax monieys are used to provide consumers with more disposable income, as here, because then they can buy additional products,

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    1. And higher business taxes lead to higher prices and or declining earnings, possibly lower stock prices and lower dividends. It’s all connected.

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      1. :Let me try to be clearer. A company pays taxes out of the profits it makes on the goods and services it sells. If the company sells more, it makes more profits. If consumers buy more products, the company’s total profits increase. When consumers have more money to spend, they buy more products, When consumers’ incomes increase, they will buy more products, increasing the company’s profits, which may suffice to pay any increased taxes on the company. If the higher sales do not suffice, the company must raise prices — this is the effect you are concerned with. But if higher sales more than suffice, the company may lower its prices. In this latter situation, the company may even lower its prices. The latter situation is sometimes described by calling the market for a product, “consumer driven”.
        So raising taxes on businesses does not necessarily result in a corresponding rise in prices.

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      2. Where and how does consumers buying more products fit into the scenario of business paying higher taxes? Are you assuming those higher taxes paid somehow teach consumers?

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      3. You asked “Are you assuming those higher taxes paid somehow teach consumers?”
        Assuming “teach” is “reach”, yes, I am. Aren’t we talking about Biden’s redistributive schemes?

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  2. In the reference given, I don’t see the evidence for this: “The promise of more for the middle class and lower income Americans, all paid for by business (*) and five percent of Americans is false, unless you are willing to accept higher and higher national debt and its consequences affecting everyone.”

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  3. I fear that nobody really cares and neither party cares about the debt. The general population doesn’t care because they keep raising the debt ceiling. Until the government is forced to make cuts and the people do not get a full check, will anybody care.

    I am amazed at the number of people who truly believe that only the millionaires will be pay the extra taxes. This applies to all people who believe any politician without question, not just Biden’s “promises”. We have a centuries of politician empty promises.

    Liked by 1 person

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