Biden: Increase corporate taxes to reduce inflation

A direct quote:

“You want to bring down inflation? Let’s make sure the wealthiest corporations pay their fair share.” -Pres. Joe R Biden via Twitter

So, the solution to inflation, where companies have been forced due to increased costs to increase the retail prices we all pay at the pump, store, website, mall, or wherever else we spend our money, is to increase the costs even more???

I know the man isn't that bright, I know he's lost not just a step, but a lot of steps compared to his more youthful years, I know he's nuts, and I know the hard-core woke super-left has him by the short and curlies, but this is too stupid even for him.

If we raise costs on corporations, they'll charge less for the products they sell??? That's insane. Simple math dictates the exact opposite is true. When you increase costs on corporations, those costs get passed on to consumers, which is why I maintain that corporate taxes aren't even paid by corporations in the first place.

Is there even a single person out there willing to take his side on this stupidity?

Bezos and Biden spar over inflation and corporate taxes - The Boston Globe

 

Pardon my derisive laughter.

I'm not sure how they even let Biden come out with a statement like that. Does the WH think that John Q Public is that oblivious? I know some people have willful blindness, and the dumbing down of American has been rather successful, but there still are a large number of people who understand business economics.

 

Yes.

 

Jean Pierre, the best afternoon nap replacement ever....

 

Hey, I am still waiting for my consumer price reduction from the Trump corporate tax cut. According to you guys simpleton economics, this is exactly what should have happened, since supposedly tax rates are directly passed on in form of prices to the consumer. So, where was my price cut?

So, forgive me when I don't believe the simpleton economic deliberations of Trumpers, who generally know next to nothing about macroeconomics.

 

What do 'Trumpers' have to do with the discussion at hand? Absolutely nothing, but your attempt at deflection is so noted.

The large scale economic impacts involved in macroeconomics are a variety of factors, and aren't necessarily applicable in business at all times. Any effects of tax cuts aren't always immediately effective. I don't feel the corporate tax cuts did much, but there was business growth under a decent economy. Fortunately, that growth has continued, but also with a loss of around 250,000 businesses closing permanently due to COVID related issues that tempers that growth.

 

You should probably check facts before declaring something to be true that you haven't researched.

The tax cuts were signed into law in October of 2017 (which was a really, really BAD month for me, as it's the last time I ever walked), and the CPI went negative as a result. Bet you didn't know that, didja?

Fast forward into 2018, and it recovered a bit to an annual net increase of 1.9%, but that is far below historical norms of roughly 2.5-3.0%, and it went to zero or less for 3 non-consecutive months. Keeping in mind that CPI is a direct measure of inflation, and inflation is always happening (at times, like now, way more than others), and it's clear to see that those cuts did in fact "trickle down" to consumers.

It really has to, at least in any market that is competitive, because eventually someone is going to pass on those savings in order to have a competitive advantage and increase their net overall business, and once the first one happens, everyone else has to follow along lest they lose vast amounts of market share. It's simple math, really, if you can cut your prices without decreasing your profits, either you'll be the first to do so and obtain a competitive price edge if only briefly, and then it's monkey-see, monkey-do.

No different than if the wholesale price they pay for products goes down. I mean, why do you think Wal-Mart tends to have the best prices on just about everything? Because they're so huge, and they purchase so much (at wholesale prices) they have the ability to strong-arm their vendors into lowering their price to the absolute lowest they're willing to sell for, to the point that even $0.01 less per unit would mean they'd sooner lose Wal-Mart as a customer. Believe me, for a very short amount of time in my life I was a supplier to them, and they squeezed me for just about every penny in profit we were making. But the volume was simply so huge, we couldn't walk away. We made 10-20% margins on "regular" customers, but less than 1% on Wal-Mart. But 1% of a gynormous number is still damn healthy to the bottom line.

Next time, do your research first, CPI numbers are readily available to anyone who seeks them.

 

Biden's a babbling fool. Look at the difference between retail inflation that is running 8% and wholesale inflation that is running 11% and you see that corporations are already eating over a 1/4th of the increased inflation costs rather than passing it to their customers. We are already going to see a wave of companies fighting to avoid bankruptcies and layoffs as it is. Fortunately for America, Joe Manchin in probably too sensible to go along with this silliness. And thank God for Joe Manchin, he's shown more spine when it has been absolutely critical than anyone even knew that he had.

 

I'm not sure how they let him out in public to begin with.

What, none of you lefties out there care to take this one on? I know one tried, and failed, but surely more than one of y'all are going to come to your boy's defense, no?

 

Unfortunately, the democrats and leftists have tainted the thinking of a good number of citizens causing them to believe that capitalist corporations are evil and the enemy of the American people. And then those people think we should either 1. destroy the enemy by taxing them into oblivion, or 2. take them over by nationalizing and socializing them.

So yeah, plenty of non-specific gender Q. Public are that oblivious.

 

So you're just tired of making excuses for Biden so best deflect from the OP?

 

Quote; Look at the difference between retail inflation that is running 8%, and wholesale inflation that is running 11% and you see that corporations are already eating over a 1/4th of the increased inflation costs rather than passing it to their customers.

??????????????

Here’s ExxonMobile basic org. chart;

Exxon crude
to
Exxon refineries
to
Exxon Terminals/wholesale fuel
to
Branded distributor/retailer
or
Unbranded distributor/retailer

Thus, using ExonMobile as an example, I’m trying to figure out which party is eating over 1/4 of the increased inflation costs rather than passing it to the customers?

 

How do you explain that wholesale inflation is 27% higher than retail inflation?

 

WELCOME BACK, CARTER: Yellen acknowledges “stagflationary effects” from energy, food price spirals.

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At least she correctly notes that the solution is increased supply:

"Treasury Secretary Janet L. Yellen said on Wednesday that Americans should not expect immediate relief from high gas prices but maintained that increases in global supply are eventually likely to provide long-term relief for motorists at the pump."

But, the hellfires of inflation not only destroys demand it also inhibits supply and inputs become more expensive.

“Higher food and energy prices are having stagflationary effects, namely depressing output and spending and raising inflation all around the world,”

The foolish unnecessary March "Stimulus" checks lit the fires by suppressing supply while increasing demand, lighting the destructive fires that rage to this day:

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The 2022Q1 GDP report that showed a -1.4% retreat in the US economy.

Ben Bernanke is also raising the alarm on stagflation in the US

To hell in a handbasket.

https://poll.qu.edu/poll-release?releaseid=3846

Quinnipiac has Biden's rating on the economy at MINUS 29!

He really sucks at this.

GOP Odds for taking the Senate are 75-25

And for the House the odds are 84-16

https://electionbettingodds.com/House2022.html

Help's coming

 

I'm surprised they're that low.

 

Who knows who actually writes his tweets. This WH is impossibly stupid.

Dow drops 1,100 points for its biggest decline since 2020 as the sell-off this year on Wall Street intensifies. “We started to see at the end of the year that consumers were turning to credit cards to pay for the rise in food prices, rise in energy prices, and that’s actually gotten much worse.”

They have completely screwed up the US economy. They did this by deliberately funding a workers strike as companies were trying to exit COVID, then followed that up with an unconstitutional vaccine mandate and now they want to scapegoat them for inflation. Once again, they think that blaming someone is equivalent to solving the problem. This is the most destructive WH of our lifetimes.

​

 

Consumer debt hits $15.6 trillion in 2021, a record-breaking increase (cnbc.com)

In addition to your data @Zorro

But the economy is doing so well...... *sarcasm included

 

Biden's always been a stooge for the credit card companies. Ever notice how many of them are incorporated in Delaware?

​

 

We don't do debt here at casa Floss. Not even a mortgage. We do have one car leased, but that was a compromise because my wife wanted a brand new car and I said we weren't going to pay for new. This was, of course, back in the day (about 2 years ago) that even a 1-year-old barely used car cost half of what it did brand new.

 

The tax cut was in 2016 and if you didn't notice an obvious and measurable increase in your economic position from 2016-2109 you don't manage your own finances. I certainly noticed the improvement. Just as I have noticed the implosion of everything in the past two years. You guys destroyed the world wide economy with your insane reaction to the Covid pandemic. The starvation deaths worldwide due to your response is going to bury the number of deaths due to Covid. Trump is partially to blame because he initiated the first shutdown and first stimulus package.

 

Notice how the lefts calls to action are always so vague and meaningless, yet so powerful to the overly emotional?

"Make the rich pay their fair share"...means literally nothing. They already pay a considerable amount. How much is fair? They literally never give a number.

"Common sense gun laws"...again means nothing. We already have background checks and laws against felons.

The reality is, they want to tax rich people until they arent' rich and create gun laws that remove your law abiding citizen from being able to have them. THIS is why they are so vague.

 

Word from a moron directed to those that relate/understand him and them! ¯\_(ツ)_/¯

Believe me, they do not fall on deaf ears, NOT AT ALL!

 

There’s a common denominator among the following capitalist players;

Manufacturers
Wholesalers
Retailers

“Demand”

Thus,

......how much money Manufacturers are willing to pay for their raw and semifinished materials?

.......how much money wholesalers are willing to pay for a finished product?

........how much money Consumers are willing to pay for a finished product?

Thus, a high DEMAND also increases the price.

Now, in reference to your stated 27% wholesale inflation, here’s AN EXAMPLE/breakdown of known factors that have increased the price of goods since March 2021;

a. High Demand.......15%
b. Freight/transportation.....5%
c. Cost of manufacturing a product......7%

Total inflation; 27%

Once again, a high DEMAND increases the price of goods

 

I literally laughed when I read that.

It's always reassuring to be reminded that a bunch of economically illiterate "progressives" are running this country....

 

We do have a serious problem today with tax collection. There is a MASSIVE amount of unpaid taxes that YOU and I are having to make up for, because these corporate scoff laws are cheating us.

Also, economists state that the only solution to the inflation we want solved is to slow economic growth.

That IS being done by raising interest rates.

But, it would also help to demand that corporations pay the taxes THEY OWE US.