Taxing the “Rich” 101.

Here is my first public service installment from MrEricksonRules’ University, highlighting my course, “Taxing the Rich 101.”

“Taxing the Rich 101” rule number one: While “taxing the rich” may sound good, the truth is that big corporations and “the rich” never really get hurt by increased taxes.

“Taxing the Rich 101” rule number two: The truth is that big corporations and “the rich” just shuffle their money and assets around, and get around tax increases by using other “legal” means to protect their wealth, while passing on the pain of the tax increases down to the 99% of us who are just trying to make a living.

“Taxing the Rich 101” rule number three: “Taxing the rich” really means taxing everyone but “the rich.”

Case in point: Big corporations and “the rich” didn’t even get hurt by the pandemic.  In fact, they had record earnings and increased their wealth dramatically during the pandemic and the oppressive lockdowns, while the unemployment rate skyrocketed, and most small business suffered immensely and many thousands of them went out of business.  

Did everyone get that?

I hope so, because that’s the extent of the course.

The final exam is a pretty easy one.

You may say, “But MrErickson, we already realize this.” 

Undoubtedly, this isn’t telling some of my readers anything new, but this is written for those of us out there who still believe that “taxing the rich” may sound good.   

Now that we all understand what “taxing the rich” really means, let’s take a look at “President” Biden’s and the democrats’ proposed tax hike.

Biden reportedly planning first major tax hike since 1993 in next economic package

Spending bill could include hikes in the tax rate paid by corporations, wealthy Americans

According to Megan Henney of FOXBusiness, “President Biden is reportedly planning to include the first major tax hike in close to 30 years in the next economic spending bill set to follow his $1.9 trillion coronavirus relief package.”

“The next spending initiative — which is expected to be even bigger, costing as much as $4 trillion — won’t rely on just government debt as a funding source and could include an increase in both the corporate tax rate and the individual rate for high-income earners, according to Bloomberg News, citing a person familiar with the matter.”

“The planned changes include: raising the corporate tax rate to 28% from 21%, raising the income tax rate on individuals earning more than $400,000, expanding the estate tax, creating a higher capital-gains tax rate for individuals earning at least $1 million annually and paring back tax preferences for so-called pass-through businesses.”

“Pass-through businesses” include sole proprietorships, partnerships, limited liability companies, and S-corporations.”

Pass-through businesses represent around 95% of the businesses in our country, meaning small businesses…, as if they haven’t been hammered during the pandemic enough. 

“The White House did not immediately respond to a FOX Business request for comment.”

No surprise there.

“The proposed tax increases will mostly mirror Biden’s proposals during the 2020 presidential campaign, when he vowed to reverse former President Donald Trump’s 2017 tax cuts on ‘day one’ of his presidency. That includes raising the rate paid by corporations and wealthy Americans and making the tax code more progressive.”

Remember, “more progressive” really means more oppressive.

“Any tax increases included in the legislation would likely take effect beginning in 2022, Bloomberg reported, with some lawmakers wary of raising rates until the economy more fully recovers from the coronavirus pandemic.”

“An analysis of Biden’s tax plan conducted by the Tax Policy Center estimated it would raise $2.1 trillion in new revenue over a decade.”

So, that means this tax increase would pay for the “COVID Relief Bill” by 2032.

Nice.

“It’s unclear what other measures would be included in the proposal, but on the campaign trail, Biden emphasized the need for new infrastructure investments and measures to combat climate change, as well as ways to revitalize the manufacturing industry and revamp housing, education and health care.”

“Raising taxes will serve as a key test for the nascent [new] administration as it navigates a 50-50 Senate in which moderate Democratic lawmakers like Joe Manchin of West Virginia and Krysten Sinema of Arizona play an outsized role.”

If they’re really moderate democrat lawmakers, why do the vote with the rest of the democrats EVERY time?

The truth is, Joe Manchin and Krysten Sinema just talk like moderate democrat lawmakers, but they really aren’t.

“The infrastructure proposal is sure to ignite a firestorm of criticism from Republicans, and possibly some moderate Democrats, who are worried about the exorbitant level of government spending.”

Ha!

Democrats who are “worried about the exorbitant level of government spending?!!!”

I’m sorry to tell you, Ms. Henney, but those democrats don’t exist.  

Please be on the lookout for my next course, made available to everyone free of charge, from MrEricksonRules’ University.

Hey…, I’m just trying to do my part!

If you’re not already “following” me and you liked my blog(s) today, please choose to “follow” me, which will keep you up to date on all of my latest posts, and/or leave me a comment.  I value your feedback and I’d love to hear from you!

Thank you, MrEricksonRules.