{"id":1410110,"date":"2022-03-30T12:44:47","date_gmt":"2022-03-30T16:44:47","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1410110"},"modified":"2022-03-30T12:44:50","modified_gmt":"2022-03-30T16:44:50","slug":"sen-sanders-proposes-insane-95-business-tax","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/sen-sanders-proposes-insane-95-business-tax\/","title":{"rendered":"Sen. Sanders Proposes Insane 95% Business Tax"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">14<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fsen-sanders-proposes-insane-95-business-tax%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1410110&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p><span>High gas prices and runaway price <a href=\"https:\/\/fee.org\/articles\/how-inflation-drinks-your-milkshake\/\">inflation<\/a> more broadly are top-of-mind for many Americans right now.\u00a0<\/span><\/p>\n<p><span>As a result, progressive politicians are feeling the squeeze to explain why the federal government\u2019s money printing and deficit spending aren\u2019t to blame. And if Bernie Sanders\u2019 latest radical proposal is anything to go by, some of them are getting pretty desperate.\u00a0<\/span><\/p>\n<p><span>The Vermont senator <\/span><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-03-25\/sanders-floats-95-corporate-levy-going-after-jpmorgan-chevron\"><span>just unveiled a proposal<\/span><\/a><span> for a 95 percent tax\u2014yes, 95 percent!\u2014on business profits above their pre-pandemic levels. This comes as part of his larger attempt to blame corporate greed and \u201cprice-gouging\u201d for inflation.\u00a0<\/span><\/p>\n<p><span>\u201cThe American people are sick and tired of being ripped-off by corporations making record profits, while working families pay absurd prices for gas, rent and food,\u201d Sanders <\/span><a href=\"https:\/\/twitter.com\/SenSanders\/status\/1507430127843655690\"><span>said<\/span><\/a><span> in a tweet alongside the news. \u201cThe time has come for Congress to work for working families and demand that big corporations pay their fair share.\u201d<\/span><\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\">The American people are sick and tired of being ripped-off by corporations making record profits, while working families pay absurd prices for gas, rent and food. The time has come for Congress to work for working families and demand that big corporations pay their fair share. <a href=\"https:\/\/t.co\/ohPKaKfeCY\">https:\/\/t.co\/ohPKaKfeCY<\/a><\/p>\n<p>\u2014 Bernie Sanders (@SenSanders) <a href=\"https:\/\/twitter.com\/SenSanders\/status\/1507430127843655690?ref_src=twsrc%5Etfw\">March 25, 2022<\/a><\/p><\/blockquote>\n<p><span>Here are some of the details of the senator\u2019s plan.\u00a0<\/span><\/p>\n<p><span>\u201cCompanies would pay the current 21% corporate tax rate on earnings up to the amounts they recorded before the pandemic, and then have to pay a 95% rate for profits above those levels,\u201d <\/span><span>Bloomberg<\/span> <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-03-25\/sanders-floats-95-corporate-levy-going-after-jpmorgan-chevron\"><span>explains<\/span><\/a><span>. \u201cThe total tax is capped at 75% of a company\u2019s income in a single year. The levy would only apply to corporations with at least $500 million in annual revenue.\u201d<\/span><\/p>\n<p><span>Here are three big problems with this radical and misguided proposal.<\/span><\/p>\n<h2>1. It Doesn\u2019t Address the Actual Problem<\/h2>\n<p><span>Corporate greed and \u201cprice gouging\u201d are not, in fact, the reasons behind the current surge in prices that is hitting Americans so hard. As economist Brian Riedl <\/span><a href=\"https:\/\/twitter.com\/Brian_Riedl\/status\/1494092072479084544\"><span>noted<\/span><\/a><span>, oil companies, for example, are no less \u201cgreedy\u201d or \u201cprofit-seeking\u201d today than they were in May of 2020, when gas prices fell below $2\/gallon.\u00a0<\/span><\/p>\n<p><span>Were they just feeling super generous then and extra greedy this year? Of course not.\u00a0<\/span><\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\">Whether it&#8217;s <a href=\"https:\/\/twitter.com\/BernieSanders?ref_src=twsrc%5Etfw\">@BernieSanders<\/a> making it or <a href=\"https:\/\/twitter.com\/TheJuanWilliams?ref_src=twsrc%5Etfw\">@TheJuanWilliams<\/a>, the argument that &#8216;corporate greed&#8217; is to blame for high gas prices is silly &#038; has no basis in economics.<\/p>\n<p>Clip from me on w\/ <a href=\"https:\/\/twitter.com\/KennedyNation?ref_src=twsrc%5Etfw\">@KennedyNation<\/a> <a href=\"https:\/\/twitter.com\/FoxBusiness?ref_src=twsrc%5Etfw\">@FoxBusiness<\/a>: <a href=\"https:\/\/t.co\/45FmL5lEzb\">pic.twitter.com\/45FmL5lEzb<\/a><\/p>\n<p>\u2014 Brad Polumbo \ud83c\uddfa\ud83c\uddf8\u26bd\ufe0f \ud83c\udff3\ufe0f\u200d\ud83c\udf08 (@brad_polumbo) <a href=\"https:\/\/twitter.com\/brad_polumbo\/status\/1494328346846527494?ref_src=twsrc%5Etfw\">February 17, 2022<\/a><\/p><\/blockquote>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\">If only we could return to May 2020, when national gas prices fell to $1.93\/gallon because oil companies decided they love us and didn&#8217;t care about making money. Is that how pricing works? <a href=\"https:\/\/t.co\/GzdJQHPG5N\">https:\/\/t.co\/GzdJQHPG5N<\/a><\/p>\n<p>\u2014 Brian Riedl \ud83e\uddc0 \ud83c\uddfa\ud83c\udde6 (@Brian_Riedl) <a href=\"https:\/\/twitter.com\/Brian_Riedl\/status\/1494092072479084544?ref_src=twsrc%5Etfw\">February 16, 2022<\/a><\/p><\/blockquote>\n<p><span>Economists across the political spectrum have dismissed Sanders\u2019 nonsensical notion out of hand. An IGM Chicago <\/span><a href=\"https:\/\/www.igmchicago.org\/surveys\/inflation-market-power-and-price-controls\/\"><span>survey<\/span><\/a><span> found that, weighted for confidence, 80% of economists disagreed with this explanation for inflation.\u00a0<\/span><\/p>\n<figure class=\"image undefined\">\n<div><img decoding=\"async\" src=\"https:\/\/fee.org\/media\/41473\/screen-shot-2022-03-29-at-111454-am.png?width=600&#038;height=416.66666666666663\" alt=\"\" data-udi=\"umb:\/\/media\/3687ab763e834efba6c573382a06859d\" \/><figcaption>Image Credit: IGM Chicago<\/figcaption><\/div>\n<\/figure>\n<h2>2. Hiking Taxes on Business Would Lead to Higher Prices &#038; Hurt, Not Help, Average Americans\u00a0<\/h2>\n<p><span>Hiking business taxes, naturally, increases the costs suppliers face. <\/span><\/p>\n<p><span>So, it\u2019s a textbook example of something that causes a decrease in supply. What happens when supply goes down? You guessed it: prices go up.\u00a0<\/span><\/p>\n<p><span>\u201cBy lowering profits, this policy would discourage businesses from investing in the creation of new technologies for increasing the supply of oil,\u201d FEE economist Peter Jacobsen explains. \u201c[It also] could incentivize companies to move business operations outside of the US.\u201d<\/span><\/p>\n<p><span>\u201cFor the[se] reasons, a tax on profits will likely lead to a lower supply of oil,\u201d he said, using one example of an industry that would be impacted. \u201cOther things equal this will mean higher prices at the pump.\u201d<\/span><\/p>\n<p><span>Senator Sanders wants to respond to the high inflation the government\u2019s meddling caused with\u2026 more government meddling in the market. Is it really a surprise this would only backfire?\u00a0<\/span><\/p>\n<h2>3. Profits Are Actually a Good Thing, Not Something to Punish\u00a0<\/h2>\n<p><span>Sanders\u2019s plan is also misguided in its very nature, by targeting profits when they\u2019re actually something to be celebrated.<\/span><\/p>\n<p><span>This misunderstanding underscores why Cato Institute economist Chris Edwards called the plan \u201cidiotic.\u201d<\/span><\/p>\n<p><span>\u201c[One thing] the Left doesn\u2019t seem to get about the market economy is the huge risks, that businesses earn both profits and losses,\u201d Edwards told FEE. \u201cCompanies get denounced for high profits, but companies that lose money also get denounced as poorly managed. The reality is that over time, returns are equalized across industries to normal levels as investment flows to winners and away from losers. And if the government doesn\u2019t stand in the way, competition eats away any above-normal profits.\u201d<\/span><\/p>\n<p><span>\u201cProfits are beneficial as they signal where investors should put resources to benefit the nation\u2019s economic growth,\u201d the economist added.\u00a0<\/span><\/p>\n<p><span>\u201cWorkers do better as resources flow over time to profitable firms and productivity rises.<\/span><\/p>\n<p><span>Most profits are reinvested to expand businesses, which helps workers.\u201d<\/span><\/p>\n<p>\u00a0<span>\u201cThe Sanders plan would steal more profits from companies, leaving less for reinvestment and reducing opportunities for workers,\u201d Edwards concluded.\u00a0<\/span>\u00a0<\/p>\n<p><span>This argument echoes the words of the famed economist Ludwig von Mises, who famously explained, <\/span><span>&#8220;Profits are the driving force of the market economy. (&#8230;) In fighting profits governments deliberately sabotage the operation of the market economy.&#8221;<\/span><\/p>\n<h2>The Takeaway: A Bad Idea Rooted in Class Warfare<\/h2>\n<p><span>There\u2019s simply no defending Sanders\u2019 radical new plan on its merits. Taxing business profits at 95 percent, even only above a certain threshold, is obscenely unfair, economically illiterate, and totally off-base when it comes to actually addressing inflation.<\/span><\/p>\n<p><span>What\u2019s really driving this proposal is not substantive policy considerations, but Bernie Sanders\u2019 deeply ingrained propensity toward class warfare and envy. While it might make for effective political pandering, that\u2019s no way to run a country.\u00a0<\/span><\/p>\n[embedded content]\n","protected":false},"excerpt":{"rendered":"<p>High gas prices and runaway price inflation more broadly are top-of-mind for many Americans right now.\u00a0 As a result, progressive politicians are feeling the squeeze to explain why the federal<\/p>\n","protected":false},"author":498,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1410110","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1410110","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/498"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1410110"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1410110\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1410110"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1410110"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1410110"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}