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Economics-E-B

13 Mar

President Biden’s budget is insane. He says that he is going to tax the rich and not the middle class, but it is nothing but a shell game where you try to guess where the money comes from. The rich get their money from corporations they own or investments. President Biden says he is taxing corporations. They don’t print money, they have to earn it through selling products or services. Corporations get the money to pay the increased taxes from increasing the price of their goods or services, which you and I must purchase, or by laying off workers or denying them a raise to cover the increase cost of living. Without pay raises, the paycheck doesn’t buy as much since things cost more, so it is the same as cutting their wages. The budget also includes taxes on stocks and other investments. However, people invest in corporations to get a profit. If there is no profit due to increased taxes, they will invest their money elsewhere. That will mean less money available to corporations to expand their business or upgrade it to keep it competitive. If they can’t compete, they will lose money which will result in more layoffs and maybe closing the business. He says he isn’t taxing the average American, but he really is. He is just doing it in a way that you don’t realize he is doing it.

 

 

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