Bloomberg reported Monday that the Biden administration is preparing the increase the corporate tax rate to 28% and raise the individual tax rate for high earners ($400,000 and above annual income) to help pay for the stimulus package—these would be the first major tax hikes since 1993.
Now just to be clear, I don’t think money is evil and I don’t think rich people should be punished for their wealth, and while I agree that rich individuals and big corporations usually create a lot of value for the economy, by providing employment opportunities for example, I don’t think that should exempt them from carrying a higher tax burden compared to middle class individuals and small businesses.
Here is the thing though, while I think that RICH people and companies SHOULD pay more tax in theory, getting them to do so, is not as easy as just raising tax rates, and trust me on this, the politicians are not dumb, they know it as well, but its much easier to come out and fight for the little instead of explaining actual complicated and complex concepts about taxation, and that is why I am doing this video from my community, since I know you need more than the simplistic one liner the media and politicians are spreading around.
This is strictly my opinion, so do your own research and make up your own mind. This is not financial advice, just entertainment, so be careful!
👏👏👏 Big shout out to our growing list of Patreons. For those of you want (and can) support our channel, here is how you can help: https://www.patreon.com/user?u=13016082
Now just to be clear, I don’t think money is evil and I don’t think rich people should be punished for their wealth, and while I agree that rich individuals and big corporations usually create a lot of value for the economy, by providing employment opportunities for example, I don’t think that should exempt them from carrying a higher tax burden compared to middle class individuals and small businesses.
Here is the thing though, while I think that RICH people and companies SHOULD pay more tax in theory, getting them to do so, is not as easy as just raising tax rates, and trust me on this, the politicians are not dumb, they know it as well, but its much easier to come out and fight for the little instead of explaining actual complicated and complex concepts about taxation, and that is why I am doing this video from my community, since I know you need more than the simplistic one liner the media and politicians are spreading around.
This is strictly my opinion, so do your own research and make up your own mind. This is not financial advice, just entertainment, so be careful!
👏👏👏 Big shout out to our growing list of Patreons. For those of you want (and can) support our channel, here is how you can help: https://www.patreon.com/user?u=13016082
You are pure Heart person.
I would argue it doesn't matter how low taxes are for the rich, they're going to use their massive resources to avoid as much of it as possible either way. Even if just paying the taxes were cheaper, the rich are likely to spend more on avoiding taxes just to spite the government.
I’m here for the investing advice. This felt like a hackish political statement, not a truly helpful discussion of points and counterpoints.
Nothing is free, contrary to popular belief
It's intended to destroy the economy……how else can you get rid of the US dollar..
Tax the poor to high heaven is just fine. Raise taxes on the rich and people have sticks up the butts. Good lord will the madness end.
I love this tax planning video. I completely agree. The one liner headliner is seriously frustrating and completely ridiculous!
This is the best breakdown of taxes I’ve ever heard especially the part about Ireland 🇮🇪 I had no idea but now I have a lot of ideas 💡 😉 thank you for making it easy to understand in layman’s terms that’s why I subbed in the first place , Knowledge is truly power.
I really appreciate you Tom 👍🏾
I'm a bit confused… So your proposed solution to avoid a "race to the bottom" is to… Start racing to the bottom?
Wouldn't you just incentivize Ireland and such to also lower their rates, and the companies would still flow money through there to save on taxes?
Tom "no bullshit" Nash for king. 🇺🇸
The US is trying to do what Soviet Russia did to the Kulak's. Funny thing is, I hope I'm alive to see them beg for the rich to come back to the states once their asset's, i.e. their businesses go with em 😂😂
its actually scary how someone who doesn't know what long term damage he is doing to the country has complete power to do whatever he pleases with no downside as he will not be one of the people who experience the downside of his own choices.
Heres the thing somebody has to pay for corporation bail outs and someone has to pick up the tab for corporate and millionaire tax cuts. The bracket goes down to 7% or less after deduction loop holes. We pay no less than 25%. Bottom line is tax cuts for the rich has done nothing for us it goes into the system but not to 70% of Americans lol. Americas economic growth is measured by markets and the rich the reality is the average American has no savings or hardly any. The Stimulis Bill's, child tax credits and is what America needed the average individual and family finally has a chance and a boost in the economy which will work out in the long run.
There's a lot of people who are completely and utterly useless. I know some of them, they have no savings, blow copious amounts of money on junk and expect a pity party. I believe we should also have an idiot tax. If you're not saving at least 5% of your income, you're should pay a higher tax rate no matter what you make. If you make $2000 a month and have no savings, then live on $1900 and save $100 a month. There's no excuse to be irresponsible.
Why do Supply-Siders always think we're on the right side of the Laffer Curve?
"Brawndo has electrolytes" is all the average person is going to say when you try to tell them that lowering taxes can bring more revenue.
Why punish those who are high achievers with more taxes? Furthermore the rich always find a loophole to get out of taxes. I say close the tax avoidance loop holes and have a flat tax rate for all
TLDR: Globally, corporations and billionares are waaaayyyy too greedy to every pay honest taxes, so unless you're making $$$, you're fucked.
Because there America asked for it.Someone who voted him are really regret.
Corp tax in the U.S was 35% Now it's 21%. So More jobs, right? For Americans? That's why Ford is closing plants in U.S while building newer models in Mexico. Where do you think the Mustang EV is manufactured? How many jobs for Americans have Nike created here after this BS Corp tax break?
Oh… That 1T in revenue a year the U.S would get before the BS tax break? Kiss it goodbye. Better yet, bend over cause here comes Uncle Sam to tax that @ss.
How do we deal with a company like Amazon that doesn’t pay taxes?
I could not disagree more. Since the 1960's the taxes on the richest 1%, and big corporations have been going down, down, down. Is the wealth gap smaller, or larger? Using your logic, the ideal corporate tax rate would be 0%???
Warren Buffet had a famous interview where he pointed out that the marginal tax rate for him (after various legal tax loopholes), was less than his hard working secretary, which he thought was obscene.
If you are poor, you are 50 times more likely to be audited by the IRS in the USA than if you are rich. Why? Because rich people sue the IRS for being audited, and the auditors are pressured to not take the risk.
Kansas tried massively cutting the taxes to corporation. It was an absolute disaster; they lost tax income and the benefits went to the shareholders rather than to Kansas. Just massive welfare for the rich.
I could go on with examples like this for hours. But when ever I hear about 'trickle down economics', I imagine the laughing rich, pissing in the faces of the middle class. "Want MORE trickle down??? Give us more money, we can trickle down forever!!!"
What we need is a much simpler tax code, with far, FAR less loopholes.
I think you forgot the second most important think! If corporate income tax is increased, one the big and biggest companies will afford the tax evasion maneuver and pay taxes overseas. So by increasing the corporate income tax the government is destroying the small and medium companies. Why? The big companies are paying less tax due to tax evasion maneuver so they have financial advantage! So in the end you will see only big players for example big coffee chains selling everywhere, they will sell average quality coffee (highly overpriced) and WE all will ask ourselves why the small coffee restaurants are gone!!! In contrary to the common sense, the increase of corporate income tax is good for the biggest companies but only for them! The biggest companies will always lobby for it! The politicians receive funding, the big companies are getting monopoly! The there is only one party that loses: ordinary folks! Me and you… 🙁
The rich already pay a disproportionate amount of US taxes. Why do you think they should be forced to pay a much higher percentage compared to everyone else?
May??IT WILL destroy the economy. I mean how come they actually are contemplating this given what happened the past year?? that buyer's remorse is goign to get very,very real if they actually do this.
if you live in America I recommend you leave
I think you might be right about the practical difficulties and shortcomings of the plan but way off on your solution. I mean tax rates have been going down since the 70s and look where we are. Insanity is doing the same expecting a different result. We agree on that.
What next title will be? Money may become obsolete by the end of this year? I mean this is why market is dropping, because of all these paper hands and induced fear by the media and tubies
If anyone doesn’t believe what he is saying here, look no further than California.
Interesting, I wonder if this idea that lower taxes will result in higher tax revenue has been studied and tested? Well, its has been studied and tested. Guess what was the result? Big failure. In Kansas they introduced this policy, it was a complete disaster. Revenues decreased, and all it did was benefit the wealthy, and put the burden on getting out of the mess on the middle class.
So, Tom, if you claim we should have an honest discussion about taxes and not involve politics, then it should be pretty easy to look at the research already done on this concept. The Laffer curve is not a respected point of view of any credible economists.
Also, this idea that higher taxes will result in wealthy people leaving the country. To move where? Russia?, China? Brazil? or live their lives in a private villa in Costa Rica. Common, another ridiculous and a bit of fear mongering that these people and companies will leave to lower their taxes. Again, if you are having a discussion based on data and research, this is not a point one would be making.
U r the best! Thx you for sharing knowledge
You do know that the top 10% of earners pay 80% of all taxes. In fact the bottom 20% pay 0% of the tax burden.
Makes sense in theory, but I would like to know if it has worked for the US in practice after we brought down corporate rates.