Three proposed initiatives show that the Biden administration and extreme-left politicians want to take control of more of your income without actually admitting it. These money-grabs come with almost-clever disguises and populist themes.
The Global Minimum Corporate Tax
First, the 15% global minimum corporate tax is held up as a way to make large companies like Amazon and Tesla pay their fare share of taxes. The picture that Biden and the left paint is as if this will finally make Scrooge McDuck pony-up some of those fat stacks of cash he’s sitting on. That’s not how it works. That’s not how any of this works.
Corporations take in revenue by selling goods and/or services to you, the consumer. Then, from that revenue, they pay for materials, labor, buildings, taxes, fees, etc. If their tax burden increases, they have only one choice – raise the prices of their goods and services. Who do you think will bear the cost? Yup, you! Your clothing, groceries, cars, … everything will become 15% more expensive or they’ll have to reduce labor costs. Either way, it’s the workers and consumers who take the hit.
This is a semi-veiled attempt to impose a consumption tax on individuals while keeping the craptastic income tax in place at current levels. Basically, it’s a massive tax hike on people who buy … anything while turning corporations into tax collectors. Unfortunately, it will disproportionally hurt low and middle-income earners whose paychecks are largely used to buy necessities.
Worst of all, this isn’t just an American problem. Biden managed to get the leaders of the G7 to agree to this governmental money-grab. Why wouldn’t they?
Expansion of the IRS
President Biden wants to overfund the IRS with an additional $80 billion so that the behemoth bureaucracy can have direct access to your financial accounts. The left is selling it as a way to make the rich “pay their fair share,” but that’s the populist whitewash of their progressive money-grab.
The proposal would hire a ton of people and create new systems to intrusively inspect every individual and business checking, savings, and investment account in order to record all inflows and outflows. The government would track every dime you make and everything you buy.
The IRS will see that you sold that table for $300 bucks so that they can demand their “fair share.” Just wait until they do away with cash so everything has to go through an electronically-surveilled account…
Another troubling aspect of this proposal is the IRS’s inability to secure the data it already has. Last week a trove of incredibly personal tax filings were leaked from the IRS to the media. If some loon over at the IRS can do this to anyone they want, imagine the damage they could do if this information included direct access to your personal accounts?
Social Security for Puerto Ricans
Last week, President Biden proposed giving all residents of Puerto Rico access to social security. What this actually means is that Biden would like to have all the residents of Puerto Rico paying into the Social Security Trust Fund – which can only pay benefits for about another 13 years.
Puerto Rico is not a U.S. state. As such, most of its citizens do not pay U.S. Federal Payroll Taxes which is what funds Social Security OASI (retirement) and DI (disability).
If Democrats can get Puerto Rican workers to buy into their scheme, they get a fresh pool of income to tax and a larger trust fund to raid for progressive projects. Of course, this also makes more people dependent on the government for financial security.
They’re Sure You’ll Fall For It
Woke culture, eat the rich, catch the cheats, social justice – all of those themes are built into these schemes. And, they’re sure you’ll fall for it.
Who wouldn’t want to give retirement benefits to the Puerto Ricans still recovering from a hurricane that hit – three years ago?
Who wouldn’t want to force Jeff Bezos and Elon Musk to “pay their fair share?”
Who wouldn’t want to hand over direct access to their personal financial information to help the IRS collect more tax revenue?
Who? Hopefully, you.