RUSH: Let’s go to Kevin in Louisville. Great to have you. You’re next, sir. We’ll give you a shot.
CALLER: Hey, Rush. Joe Biden claims that his tax plan is to not raise tax on anybody making less than $400,000, and that is really a lie because Joe intends to increase tax on corporations. Corporations really don’t pay tax. They pass the taxes on to their consumers.
So if I own a business and I’m selling something for $10 and I profit $1, and he increases my tax 10%, then I’m just gonna raise my price $11. So in reality with his plan, the little guy is paying all of the corporate taxes. You know, he’s either too dumb to grasp that or the person pulling his strings knows precisely what’s going on and they’re just deceiving everybody.
RUSH: Of course. Everyone knows what’s going on. Look, this is something as a 77-year-old guy with 47 years in Washington, he knows exactly what he’s lying about here. He knows exactly what he’s misrepresenting. There’s two points about this. Biden has pledged that he’s going to raise taxes on corporations and people who make $400,000 a year or more.
Then he says that he’s going to repeal the Trump tax cuts. Well, folks, the mathematics is very simple. If he follows through and if they repeal the Trump tax cuts, then everybody is going to get a tax increase. The Trump tax cuts benefited people who make less than $400,000 a year. The Trump tax cuts were across the board, under the premise that everybody deserves a tax cut.
There’s no law that says just because you make X-numbers of millions that you have to pay more or a greater percentage than anybody else. So there’s two things here. Biden says he’s only going to raise taxes on people who make 400 grand a year or more, but he’s going to repeal the Trump tax cuts. Well, if he repeals the Trump tax cuts, then everybody is getting a tax increase.
He’s lying through his teeth when he tells you if you’re less than 400 grand a year that you’re not gonna get a tax increase. You are. The point about corporate taxes is exactly right. Corporations pass tax increases along to the consumer as much as they can. There are some limitations they face, depending on the industry they are in and depending on the competitive times that they are involved in.
You know, it’s not axiomatic that a corporation can raise prices on its goods or services anytime it wants. There are tricky ways that they can raise prices, but they still have to be very careful that they’re not doing damage to themselves in the competitive realm. If their competitors are not gonna raise prices and they do, then they’ve got a problem.
But generally speaking, in a philosophical sense, corporations do not pay taxes. That is correct, 90% of the time it’s exactly correct: Corporations pass tax increases on to the consumer by folding the tax increase that they face into the price of whatever it is they’re selling.
So Kevin is exactly right about that, Kevin in Louisville. Corporations, as a rule, do not pay taxes. They’re happy, though, for you to think they do. Oh, they would love for you to think they’re getting soaked, which is why they never complain about it. But they don’t get soaked. You do. Every tax increase, you do.