Biden's tax plans

Psaki says it's absurd to think corporations would raise prices for consumers due to higher taxes.

Frederick Hayak said, many years before, if socialists understood economics they wouldn't be socialists.

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Heartlander · 80-89, M

Higher corporate taxes would also lower dividends to shareholders, thus reducing pension payments for every American who has a retirement plan. A quick math check will show that the amount of Biden's corporate tax increase is about the same as the average corporate dividend payout. So, rather than passing Biden's corporate tax increase on to consumers, some corporations may instead pass that increase on to their stockholders by cutting or eliminating dividend.This will also undermine the value of the stock itself. The biggest losers will be the huge public service pension funds, which will lose both value and income. Of course, fund managers get paid regardless, so Biden's corporate tax increase will mostly be paid for by the millions and millions of working stiffs.

JoeyFoxx · 51-55, M

@Heartlander bullshit.

Pensions have been getting raided for decades.

A tiny percentage of Americans have access to pensions, and many of them are government employees

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QuixoticSoul · 41-45, M

@Heartlander Barely anyone even pays dividends anymore. And as an investor, you'd typically rather they reinvest and grow instead.

IronHamster · 56-60, M

@QuixoticSoul APPL and MSFT and XOM are pretty big companies, and they all pay dividends.

QuixoticSoul · 41-45, M

@IronHamster Microsoft and Apple aren't great dividend stocks, and Exxon has given up on growth.

IronHamster · 56-60, M

@QuixoticSoul No. MSFT and AAPL are still growing just fine. One of my greatest regrets is trimming positions in great stocks to diversify.

Heartlander · 80-89, M

@QuixoticSoul Practically every one of my IRA stocks pays a dividend. An average of about 3.25%. The few that don't are considered high risk, penny-type investments.

If US corporate taxes go up, it will encourage more investments in solid foreign companies. Personally, I'm already about 60% in non-US corporations. What do they all have in common? A lower combined tax rate.

QuixoticSoul · 41-45, M

@Heartlander You skipped Amazon because they don't pay dividends? Lol.

JoeyFoxx · 51-55, M

@Heartlander interesting how you mentioned pensions… and then jumped to 401K and IRA’s which are different vehicles

Do you know what you’re talking about?

Stillwaiting · M

@JoeyFoxx They are planning a tax on financial transactions .. to include 401k, IRA, 529, 403b, and all other retirement plans involving financial transactions. Are you informed on this subject?

JoeyFoxx · 51-55, M

@Stillwaiting are you? Because that sound shocking, but it’s also an inaccurate generalization

Stillwaiting · M

@JoeyFoxx Its no generalization. It is being assessed along with several other increases that will impact all income levels. Google it .. respectable news organizations are reporting it. Quit hiding the lies.

https://www.theintelligencer.net/opinion/local-columns/2021/06/biden-financial-transaction-tax-is-misguided-policy/

https://www.cnbc.com/video/2019/12/06/biden-we-should-have-a-financial-transaction-tax.html

https://www.washingtontimes.com/news/2021/jun/26/bidens-tax-hikes-include-hidden-costs-on-middle-cl/

https://nhjournal.com/biden-spending-plan-violates-pledge-not-to-tax-middle-class-experts-say/

https://www.reuters.com/breakingviews/guest-view-biden-tax-crusade-puts-privacy-risk-2021-09-29/