Inflation cures?
- Thread starter Kingseve1
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Corporate profits are at an all-time high. Big companies are raking in even bigger profits. CEO pay is up over 1400% since 1978.
The average cost of a house in the U.S. is over $436K. That's more than double what it was 20 years ago. Have salaries more than doubled (spoiler alert: the answer is no).
We basically live in a corporate oligarchy. Addressing that, and actually enforcing antitrust laws, would be a good start.
The average cost of a house in the U.S. is over $436K. That's more than double what it was 20 years ago. Have salaries more than doubled (spoiler alert: the answer is no).
We basically live in a corporate oligarchy. Addressing that, and actually enforcing antitrust laws, would be a good start.
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I agree. Corporations needs to pay more taxes. Why are so many against this?
Stop the Dems orgy of spending (Inflation Reduction Act, Infrastructure Bill, American Rescue Plan, etc.). That has been a major driver of inflation. Trying to forgive $400-$500 billion in student loans is more stimulus that the economy doesn't need.
Both Sides have done this from bush, Obama, trump and now Biden. They have all done it.
None of them have raised taxes on the billionaires
That is not correct. There were several new taxes on the wealthy to pay for Obamacare and new taxes placed on billion dollar corporations just last year. Also stock buybacks are now being taxed. Trump greatly reduced the SALT deduction which mostly benefited the wealthy in high tax states like NY and CA. Most of the tax cuts passed under Trump will expire in 2025. So that will result in higher taxes for wealthy individuals.
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Taxes on the middle class, but not the upper class. The upper class got to keep their Cadillac health care plans at their grandfathered rate. The middle class paid for obummacare with 300 percent hikes in their health care plans. I was paying 400/month for my crew and that went to 1600 a month with a higher deductible with Obama care
Under Obamacare, more low income folks got free heathcare by expanding medicaid. Everyone else paid for it in some form or fashion. A new higher tax bracket was added for the wealthy and capital gains tax went up for high earners. The middle class ended up with crappy high deductible plans.
Under Biden the deficit has been sharply reduced. (Check for yourself.)
PPP. Yes.
Student Loans: No,,
Is that right?
The deficit is different than the national debt which is greatly increasing under Biden. In the final year under Trump, the budget exploded due to Covid measures including vaccine procurement, expanded unemployment benefits, etc. Compare Biden's level of deficit spending to non-Covid years to see what a big spender he has been.
I have. We're still in 2023, but 2022 -- Biden's first budget year -- was down sharply from 2021.
The biggest juice in the Debt expansion is the Trump tax cut.
Input costs with regards to commodities is crashing. Eggs are back below $1 in some cases. Everything from wheat to oil although oil looks to have a floor in the $60's. Even labor has peaked and is finally giving corporations relief. Jobs are still plentiful as well. Because they won't be lowering prices any time soon, corps have a huge tailwind. Just one reason why the stock market has rallied.
Just curious how reducing the SALT cap benefited the wealthy in high tax states? I guess I’d be considered wealthy, but in a state not quite as bad, and that SALT cap crushed me. Losing the state deduction was a killer and my taxes paid increased significantly.
There is literally one answer: stop printing money. That's literally the only thing that causes inflation. Printing money devalues the currency in circulation.
You might ask why on earth would the fed just keep printing money even though they know it's causing inflation? The answer is we have bills that need paid, and the only two ways to pay them are 1) raise taxes to generate enough revenue to pay the bills (massively unpopular) or 2) print more money. Congress almost always passed on option 1 because it is politically unpopular.
The next salient question is: why do we not have enough money to pay the bills? The very clear answer is we have a massive government spending problem. We have insane amounts of revenue, but instead of ever cutting the mind-blowing wasteful costs, the answer is always to take more of Americans' money.
What about the fed "raising rates" to cool inflation? This "works" only because it means goods will cost more, so people will spend less. Yes, you read that correctly: to fix government spending, the fed will punish the consumer with highest costs (in addition to built in higher costs via inflation) in hopes you will stop spending your money. So the consumer is passively drained of their wealth by government action in what's a double whammy of disguised taxation, in addition to the massive amounts of states tax paid by anyone and everyone.
Stop runaway spending, which stops the need to print money, which stops inflation. The end.
By stopping the federal taxpayer subsidy on out of control state taxes, it (should) forces residents of said state to vote out politicians in favor of insane policies that wind up causing insane taxes.
States are different because they can't just print money. Instead they have to raise rates to pay the bills. Then they want that federally deducted so their taxpayers really have no skin in the game and therefore never ask questions about why their state taxes are so insane.
On big ticket items but not the daily things you need to survive. Food, medicine, gas, etc. the dollar is weakening and the new wave is yet to hit.
When corporations pay taxes, that expense becomes part of their cost of doing business. They recoup that expense by passing it along to consumers that pay for goods and services. Corporations will not simply pay a higher tax and make a smaller profit. They will increase their resale prices to continue to recoup that expense. Consumers, therefore, effectively pay the higher tax. So raising corporate tax rates will result in even more inflation.
Even worse it doesn't address the core problem which is government spending. No matter how much revenue they raise through taxation, it's never enough. They always overspend (and things that are beyond stupid and wasteful) which causes the fed to print money which causes inflation.
You misread my post. I gave the SALT change as an example of a recent tax increase on the wealthy. The unlimited SALT tax deduction primarily benefited people who owned expensive homes and/or were in top state income tax brackets in places like NY, IL, NJ and CA. It is undeniable that they got the lions share of that tax preference. In any case, the Trump tax changes go away in 2025.
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The result of on-shoring manufacturing is also creating inflation with higher labor costs here vs much cheaper SE Asia labor. Some of these jobs are going to Mexico so the entire North American continent is benefiting. Not just the USA. For now, the US consumer is fully employed and eating these cost increases.
Mexico has become a lot more competitive with SE Asia on goods production. Labor costs have gotten closer, and transportation has widened in Mexico's favor.
The corporate tax rate going from 35% to 21% is permanent and does not expire.
The Trump deficit didn't just explode because of Covid, it increased every single year of his presidency up to that point. In his first budget, Biden cut the deficit from 2.77 trillion to 1.38. The same thing happened under Bush and Obama. Bush's last year the deficit exploded to due the financial crisis and then Obama basically spent eight years slowly decreasing it.
But this is kind of irrelevant anyway Presidents don't spend money, Congress does.
Good, the US had one of the highest corporate tax rates (35%) among first world nations. That is why several Democrat senators were for a rate cut too. Now we are more competitive.
FYI the tax cuts for passthrough corporations like S-Corps do expire.
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I bet cutting that corporate tax by 14% would help inflation because all taxes are passed on to the customer right? So prices should be dropping on a lot of goods as a result of the tax decrease. Heck, that seems like such a substantial tax cut that our resident paddock economists should be able to point out examples of where that tax cut reduced the price of a good.
Going from 35 to 21 is a 40% tax rate cut for corporations. Prices usually only go one way if demand stays the same or increases. Up.
I think more alarming than home prices doubling over 20 years.. is the home prices increasing 50, 60, even 70% in the last 3 years. I really think this is going to wreck society at some point. The affects of tying up that much of your income has yet to be felt. When the hammer drops, it's gonna hit hard.
It's scary stuff and I'm not sure where it gets better. I can see 100 years from now that houses will mostly reserved for the super rich while the rest of us have to stay satisfied with our tiny studio apartment pods unless you want to live in middle of f-where. Meanwhile, AI helps makes workers 10x more efficient, the super companies continue to transfer more and more wealth to the top, while workers hardly benefit from their increased productivity. Late stage capitalism is pretty dystopian.
More tax revenue equals less freebies and handouts and stimulus and money printing.
Don’t raise taxes on the middle class, just the super wealthy. Not the doctors making 500k a year. Leave them alone, they’re already paying 40 percent or so. Make the guys making 2 million a year pay more. Every dollar over 2 million gets bumped up to 42 percent.
Heck, warren Buffett, making billions, gets taxed at 20 percent some years
You realize corporations don’t pay income taxes no matter the tax rate? For a corporation to have taxable income, its revenue must exceed expenses, meaning consumers paid the taxes through the price of the product or service they purchased. All higher corporate taxes do is increase the taxes consumers pay indirectly. It benefits you in no way. In fact, it probably hurts you because if you paid those taxes directly you, and others, would probably put more pressure on government to reduce spending.
Corporate taxes. LOL
The last refuge of the economic simpleton.
The last refuge of the economic simpleton.
I'm not defensive of the big dogs. I just know that corporations don't pay taxes. Consumers do.
Basically, I'm not stupid...
Basically, I'm not stupid...