OPINION | This article contains political commentary which reflects the author's opinion.
Democrats truly don’t understand how capitalism and free markets work.
The latest piece of evidence of this comes from White House Press Secretary Jen Psaki.
Psaki said it would be “unfair and absurd” for companies to raise costs on consumers in response to the Biden administration raising the corporate tax rate.
It’s been widely reported that Democrats are pushing to implement the largest single spending bill in history of $3.5 trillion, according to The Wall Street Journal. The actual cost could far exceed this amount.
How do Democrats plan to pay for this bill?
Democrats have also finalized their plan for $2.9 trillion in tax hikes. It’s the “biggest tax increase in history,” Newsmax reported.
It’s certainly the largest tax increase in decades, which is meant to pay for the Democrats’ higher spending in their ‘reconciliation’ package.
This reckless plan to tax Americans and ignite a spending spree will surely have a negative impact on discouraging Americans from working, saving, investing, and innovating. The proposal is expected to include raising the corporate tax rate to 26.5% from 21%.
Even some Democrats have opposed the billing. Democratic leaders are propose to pass the “largest single spending bill in history with no regard to rising inflation, crippling debt or the inevitability of future crises,” Democratic Senator Joe Manchin of West Virginia responded.
“I won’t support spending another $3.5 trillion,” Manchin said.
When costs increase for businesses and entrepreneurs, this frequently has a negative impact on both consumers and employees.
Businesses can simply increase their fees for goods and services. Businesses can also decrease their costs by reducing or terminating employment.
As one saying goes, when business owners and wealthy individuals catch a cold, individuals in the middle and lower-level income brackets get pneumonia.
Watch the clip of Psaki:
Jen Psaki: It’s “unfair and absurd” that companies would increase costs for consumers in response to us taxing them more. 😳 pic.twitter.com/rHilrYdj4j
— Jason Rantz on KTTH Radio (@jasonrantz) September 28, 2021
REPORTER: I want to ask you about what Republicans are pointing to in the analysis from the Joint Committee on Taxation. They say, according to — if I’ve read the chart correctly, more than 16 percent of taxpayers would see their taxes increase under the bill that’s approved by the House Ways and Means Committee. Will the President sign that bill if — as if — it is coming out of that committee? Or will he insist on the changes so that he will maintain his commitment that taxes won’t go up on people making $400,000 a year?
PSAKI: I have not looked at the document or the report that you have put out. Obviously, the President — or that you have referenced, I should say — that the Republicans put out.
Obviously, the President’s commitment remains not raising taxes for anyone making less than $400,000 a year. There are some — and I’m not sure if this is the case in this report — who argue that, in the past, companies have passed on these costs to consumers. I’m not sure if that’s the argument being made in this report. We feel that that’s unfair and absurd, and the American people would not stand for that.