Fat hurts wrote:
Ghost of Disco Gary wrote:
Incomes are not keeping up with inflation. The proposed raise in capital gains which hurts all investors,corporate taxes will only be passed on to the consumers via increased costs of goods & services. There also plenty more taxes not listed. It's a great way to tank an economy.
"The index for goods rose 5.5 compared with a year ago, up from 5.3 percent in July. Durable goods prices jumped seven percent, up from 6.9 percent in the prior month. Prior to May and June of this year, inflation in durable goods has not run this hot since 1981."
The $3.5T porkulous bill is on life support. It will have to be greatly pared down before any chance of passage and even then it will still require Manchin & Sinema approval. As of today, Biden does not have the votes.
I have to congratulate Gary on his answer, in that it is coherent and thoughtful, even if it is wrong.
Higher corporate taxes do not lead to inflation in consumer prices, except in very narrow cases. This has been proven over and over again. The main thing that happens when you raise corporate taxes is that profits are lower than what they would have been. Prices are set by a myriad of factors. Taxes barely factor in, if they factor in at all.
The reason for inflation right now is that everyone has extra cash and there is not enough stuff to spend it on. Supply chains have not recovered from the pandemic, so practically everything is in short supply. Raising taxes will have no effect on that whatsoever. Companies will continue to work hard to meet demand, supply chains will recover, and prices will eventually stabilize.
Now if you want to talk about what specific parts of the package are pork and what parts are wise investments, that's a much better discussion. But nobody here is interested in that.
Ghost of Gary absolutely destroyed. Delightful 😂
Gary my friend- ENJOY YOUR LOSS 👋🏼