White House press office
Your April 4 editorial “Biden’s infrastructure plan” praising President Biden’s infrastructure plan confirmed that the Journal is nothing more than an extension of the White House press office, if there were any lingering doubt about that. But it also revealed that whoever wrote it is in need of a remedial course in basic economics.
The statement that it makes sense to get the money to pay for the plan from corporations “because that’s where the money is” demonstrates ignorance of a fundamental economic fact of life. Namely, that corporations really would not pay any increase in taxes. Corporations would merely collect any tax increase by reducing wages paid to their employees, increasing prices for their products or services, reducing investment in their businesses and reducing dividends to their shareholders. All of the foregoing results in lower returns for shareholders, which include pension plans for the benefit of workers and their 401(k)s. So, it’s really the middle class that takes it on the chin, not the evil corporations liberals love to hate.
Also, it is important to keep in mind that corporations include small businesses that employ almost half of all workers in this country, businesses that are struggling to recover from the impact of the pandemic.
Please, do your readers a service. Stop regurgitating White House talking points that mislead and misinform.
The writing’s on the wall. The demographics are changing. Democrats celebrate the revolution. Republicans are scared as hell!
Georgia was the final straw! To lose both Senate races to the Democrats was too unbearable to continue business as “normal.”
“Black Lives Matter” wasn’t going away. Stacey Abrams wasn’t going away. President Biden wasn’t going away.
The Republicans finally realized that years of catering to the “white male only” vote, with policies to support these views, had landed them in a definite, solid minority. Instead of trying to increase their demographics by changing their policies, they have made the un-American decision to change our voting laws drastically.
This may backfire, alienating more voters from the Republican Party.
Time will tell.
Our financial world
The writer of the April 3 letter “Unintended consequences” informs us that, in regard to raising corporate taxes to pay for President Biden’s infrastructure plan, “increasing corporate taxes results in higher prices for the goods and services they produce, reduced hiring of new employees and likely smaller wage increases and benefits and reduced dividend payouts.”
This “conventional wisdom” seems to go hand in hand with “trickle-down economics.” No offense, but I don’t think either is true.
Reducing the corporate tax rate in 2017 didn’t lead to lower prices or the hiring of new employees or wage and benefit increases, so it doesn’t make sense to say that raising the tax rate would affect any of those things. Companies will charge what the market will bear, and they’ll pay, in worker salaries and benefits, as little as they can get away with. It’s always been that way.
Also, raising prices would put their goods and services out of reach for some, reducing their profits, so it’s not likely to happen.
Aside from the practicalities, from a moral standpoint, is this the kind of world in which we want to live — one in which our corporate “overlords” decide how much they want to be paid, set their salaries, never to be reduced, then force their workers and customers to sacrifice whatever it takes to make sure they get their multi-million-dollar paychecks? Maybe an unfettered free market is not the best economic vehicle for our future.
The Pew Research Center on March 30 released survey results with the title: “Most Democrats and Republicans Know Biden Is Catholic, but They Differ Sharply About How Religious He Is.”