Taxing the Rich to Death with Prof. Michael Busler #5290

<p><strong>Summary:</strong><br /> A budget proposal was just put out by the government, and Michael Busler comes on the podcast to walk us through this proposal and some of the implications that accompany it. The federal government has spent trillions more than they received in tax revenue during the last two years, which has called for a major tax increase for higher income individuals. While this benefits lower income earners, it ultimately reduces capital formation which is vital within our economy. Tune in to hear more from myself and Busler about what the proposal means and to increase your awareness of this topic.</p> <p><strong>Highlights:</strong><br /> -A budget proposal was put out, and Michael Busler is going to walk us through this<br /> -The federal government spent $3 trillion more than they received in tax revenue last year, and they will do the same this year<br /> -The plan that Biden puts out takes income away from those that earned it, and gives it to people that have not<br /> -They’re going to provide lower cost/free healthcare, free education, and other benefits that would go to lower income Americans<br /> -Biden says he’s going to tax those that make over $400k per year, but this is only about 1% of Americans—the average American will also see rising taxes<br /> -He states that these plans will not cost anything, nor will they add anything to the debt<br /> -By over-taxing the highest income earners, you reduce capital formation<br /> -With income, you pay taxes, and then with your disposable income you spend or save it<br /> -Most people spend most of their disposable income<br /> -Wealthy income owners still have much income leftover to save and invest, which becomes new capital for the economy (which we need in our economy)<br /> -This tax increase thus takes away from this new capital. This could lead to a capital shortage, which means businesses would have to raise prices<br /> -This only helps the lowest income earners, and everyone else will feel the negative impacts of this plan<b