Yesterday The Daily Wire posted an article that illustrates the lack of knowledge of economics in our country’s current leadership class.

The article reports:

White House Press Secretary Jen Psaki claimed during Monday’s press briefing that it would be “unfair and absurd” for companies to raise costs on consumers in response to the Biden administration raising the corporate tax rate.

The article notes that Forbes has a more realistic approach:

Forbes noted in a report that it was “important to remember that corporate taxes must be paid by people,” the report said. “Any corporate tax increase will be paid by either shareholders/owners, employees in the form of lower wages, or customers in the form of higher prices.”

The goal of running a business is to provide a service (or product) and to make a profit. When you are no longer making a profit, chances are that you will close the business. A profit is made when income is higher than expenses. Taxes are an expense. In order to keep the profit at a consistent level when taxes are raised, something has to compensate for that increase–the cost of the product has to increase, the wages paid to employees has to decrease, or the profit has to decrease. Again, making a profit is part of the goal of running a business. If an acceptable profit is not made, the business will close. I think Ms. Psaki needs to take an economics course.