Let’s say you start a business selling bows. The cost of making a bow is 15 cents. You sell the bows for 50 cents. The 35 cent difference pays your expenses not directly involved in the manufacturing of the bows–the light bill, the manufacturing facility, the taxes, etc. and those expenses directly involved in the manufacturing process–salaries, materials, administration, etc. You are a small business, and there isn’t a lot left over for your profit. Then the government comes along and increases your taxes by more than one-third (the tax that is only for people making more than $400,000 will probably apply to certain small businesses) by increasing the tax on corporations. The easiest way to maintain your profit margin is to raise the cost of your product or move your manufacturing overseas. Neither is helpful to the American economy.
On Friday, Breitbart reported the following:
During an interview aired on Thursday’s “MSNBC Live,” White House Press Secretary Jen Psaki reacted to concerns that corporations will raise prices if taxes on corporations are increased by stating that President Joe Biden believes people “know that corporations do not need to raise the cost of goods in order to pay more taxes and pay more of their fair share.”
Host Hallie Jackson asked, “Of course, he could only do so much if corporations end up raising prices on things if they end up having a tax hike as well, right?”
People who talk about the ‘fair share’ owed by corporations do not understand basic economics. A corporation will not pay higher taxes–it will simply pass the increased cost on to the consumer. As for their ‘fair share,’ corporations pay payroll taxes, real estate taxes, etc. They provide jobs for people. Basically they keep the economy running. Unfortunately they make good scapegoats for people who do not understand economics. That description pretty much includes all of the current people in the Biden administration.