Want to know a secret?
It is about taxes, specifically corporate taxes. And t is not a conspiracy.
Right now the US government is looking to raise the corporate tax rate. And many US citizens are happy because those dirty, greedy corporations are ruining the environment and hoarding their millions in off-shore accounts.
Right?
And the US government is going to take back some of those profits and give them to the poor, honest people who deserve it.
Not by reducing our taxes, but through government programs. After all, the politicians know what is best for us.
Why is it that we tend to be so quick to believe that the government is going to get the money for new programs by increasing taxes on corporations?
Aside the from the fact that less than 1% of corporations are the giants we think of, with the overwhelming majority of corporations having less than 10 employees, do you really think the board, management, and shareholders of a mega corporation are going to give up their profits just because the government says so?
No.
In reality, a mega corporation- or any business, really- is going to look for ways to make up the additional expenses.
How can they cut costs?
They can make product/serving sizes smaller.
They can move production to an area where wages are lower.
They can automate- replacing humans with machinery.
They can cut staff, either with layoffs or by incentivizing senior staff who make more than less-experienced staff.
They can also raise prices.
Often, they do some combination of the above.
What does this mean in its simplest terms?
The customer pays for the government’s tax increase.
And taxpayers pay for all that “free money” the government is giving away.
And that, my friends, is the dirty little secret hiding behind the pretty words you hear from the politicians.
If you want to go a little deeper down the rabbit hole, keep in mind that the politicians create the tax laws, so you know they are being careful to create loopholes to protect their own interests.
Have you noticed how prices are increasing and the product received is decreasing?