Politicians really don’t like to talk about taxes because it, if anything does, quickly gets the attention of the citizenry. Just about everyone pays taxes, in one form or another, and they are prolific.
Semantics are often played between taxes and fees. Of course, anyone with a general knowledge of taxes understands that a fee is really nothing more than a tax. North Carolina is a prime example of playing semantics. When Republicans managed to wrest control from the Democrats in the state legislature what did they do? They cut the income tax rates (and that was good) but essentially replaced the lost tax revenue with the expansion of taxable items for sales tax, raised assorted fees and added new fees. Although politicians patted themselves on the back for “lowering” taxes, they really did not.
So, now we have a president who is trying to find tax money to help fund a $2 trillion (or more) infrastructure bill while trying to keep his promise of not taxing anyone under $400,000. How does he do it?
In reality, President Joe Biden does not. For you see, an increase in the current corporate tax rate of 21 percent to 26.5 percent, as proposed, will have an impact on all of us in some form. Corporations really do not pay taxes. Their taxes are passed onto others, either in the form of higher consumer prices or a reduction in worker salaries. Additionally, corporate shareholders, who invest in the company’s stocks, also will be affected with lower dividends or lower stock prices. Higher corporate taxes also harm employment growth and efforts to