The Impact of Increasing Corporate Income Taxes + Taxes on the Wealthy, Ep #21

<p>Why are large companies (like Amazon) getting tax breaks while the common man doesn’t? What about the wealthy—should those making more than $400,000 need to pay more in taxes? We are in a low tax environment right now and some people are upset by it. They say that corporations aren’t paying their “Fair Share” in taxes. But what happens if they do have to pay more in taxes? In this episode of Retirement Made Easy, I walk through what it could look like if corporate taxes and taxes on the wealthy were increased. The results won’t be what you think!</p> <h2>You will want to hear this episode if you are interested in…</h2> <ul> <li>[2:14] Increasing corporate taxes</li> <li>[7:00] Increase in gas taxes</li> <li>[8:57] Increasing taxes on the wealthy</li> <li>[11:55] The goal is higher stock prices</li> <li>[13:20] Increasing taxes: the bottom line</li> </ul> <h2>Increasing corporate taxes</h2> <p>Many people believe corporate taxes should be much higher. When companies like Amazon or Walmart are taxed low, they’re incentivized to hire more people and grow their business. If you give companies an incentive, they improve the overall health of communities. </p> <p>If someone in management finds out the next year's taxes will double, they have to take action. They want the stock price to continue to grow. They want to improve shareholder value. They want to continue to pay dividends. That is where their allegiance lies. </p> <p>So what is the first thing they do when corporate tax rates double? They <em>raise the prices</em> on the goods or services that they sell to all of your consumers. If Walmart doubles its prices, who’s paying for the increase in taxes? <em>You & I</em>. </p> <p>Let’s just assume Walmart increases its prices by 10% (and that we shop there). Your grocery bill goes up 10% on average. You got a 1% raise at your job. It probably didn't help you much, right? You’re 9% behind. If you increase corporate taxes on big companies, they’ll also be less inclined to hire new people. People don’t think about t