Joe Biden’s big lie, that he will not raise taxes on those earning less than $400K, is rope-a-dope Orwellian Newspeak
Keep in mind corporations, and small businesses, getting stuck with a tax on incomes above $400,000, simply pass it off in the form of higher priced goods and services which you, Mary and Joe Sixpack purchase, thereby making you the real tax payer of Biden’s tax on incomes above $400,000, and makes his plan inflationary, and a tax which the poor and middle class will pay.
Well, that is a false statement. I seems appealing except it comes from a myopic understanding of how micro-economics work.
You can "simply" say that the cost of higher priced goods and services will be passed off to employers in higher wages. Yes, I know what you are thinking, "Then the company will pass that on to consumers with even higher prices." So, prices must just keep going up forever then? Workers get demand higher wages, companies increase prices, workers increase wages more, companies increase .... wow, before you know it, everything costs in infinite amount of money and everyone makes and infinite amount of money. Well, that hasn't happened. Taxes have increased and decreased over the centuries and the economy hasn't exploded into infinity. There is clearly something wrong with your simple ideas.
The first problem is simply corporations and small businesses are not equal. The local garage mechanic down the street is a completely different animal from a corporation like British Petroleum.
The second problem is that markets are affected by numerous factors including the supply of goods, the demand for those goods. They are part of a chain of supplies. Those supply chains overlap with the supply chains of other products. Money isn't static, if flows in circles through the economy, Companies sell goods and pay employees who then buy goods from companies that pay employees. The primary overall driver of prices is money supply. The money supply is not static. It grows. When more money is needed in the economy, when the demand for money increases the supply of money is increased.
The economy is circular flow of monies to account for the movement of goods from one place to another. When the price of products increases, wages increase. When wages increase, prices increase. The economy isn't one simple circle. It is hundreds of thousands of loops, all interconnected. A change at any one point in one loop affects every other market in those interconnected loops, to greater or lesser degrees. How much depends.
Most importantly is market leverage. Market leverage is essentially the difference between the producer's need to charge more or less as demand changes and the buyer's willingness to pay more or less as supply changes. It is the slope of the supply and demand curves in a market that determine the equilibrium price. At the extreme is the monopolies that control the supply of the good. For a product where demand is high, suppliers can price at whatever point they want because buyers will meet that price. Monopolies, and to a lesser degree, oligopolies, are already charging the maximum the market will bear. They enjoy profits because they have considerable market leverage.
To put it simply, for you, corporations that enjoy record profits will not raise prices because they are already charging the maximum that buyers are willing to pay. Changes in taxes come out of profits, not consumer pocket books.
So, no, it is not true to say, " simply pass it off in the form of higher priced goods".
Ain't nothing simple about it. It is economics. It is the interactions of 180 million adult US consumers and 11 million businesses. It is the decisions of those 180 million consumers. Those consumers are human beings, the most intelligent creatures to walk this planet with brains consisting of over 100 billion cells each.
It's "simply" supply and demand curves; It's "simply" market leverage; It's "simply" the money supply; It's "simply" monopolies and oligopolies; It's "simply" banking and interest rates; and on and on goes the "simply".
Gosh, seeing as it's so simple, you must be a billionaire 'cuz you got it all simply figured out. After all, when you want more money, you "simply" got another job. Couldn't find another job? You "simply" started your own company.
". That's simply funny.