The Biden administration doesn’t understand basic economics.
They can’t grasp the predictable consequences of their radical policies.
Jen Psaki exposed her own outlandish stupidity with three insane words.
Many key industries have low profit margins and when costs go up they are inevitably passed on to the consumer.
Grocery stores typically only have a profit margin of about 2.2%, while the average restaurant profit margin is around 3-5%.
President Joe Biden claims that he’ll pay for his pending $3.5 trillion social spending bill through increasing taxes just on the wealthy, however every American will feel it in their pocketbooks.
Democrats have proposed raising the corporate tax rate to 26.5% from 21% but are trying to claim thatthe cost of the tax increases won’t be paid by consumers.
White House Press Secretary Jen Psaki claimed during Monday’s press briefing that it would be “unfair and absurd” for companies to raise costs as a result of the tax increase.
A reporter asked Psaki about 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,” The reporter explained.“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?”
“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.”
Psaki doesn’t seem to understand that entire industries operate on lower profit margins than the 5% tax increase Biden in proposing.
Businesses won’t have any choice other than to raise prices and the American people will end up paying more.
Forbes commented in a report that it was “important to remember that corporate taxes must be paid by people,” the report said. “Any corporate tax increase will be paid by either shareholders/owners, employees in the form of lower wages, or customers in the form of higher prices.”
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