Oct 7, 2021
Summary:
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.
Highlights:
-A budget proposal was put out, and Michael Busler is going to walk
us through this
-The federal government spent $3 trillion more than they received
in tax revenue last year, and they will do the same this year
-The plan that Biden puts out takes income away from those that
earned it, and gives it to people that have not
-They’re going to provide lower cost/free healthcare, free
education, and other benefits that would go to lower income
Americans
-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
-He states that these plans will not cost anything, nor will they
add anything to the debt
-By over-taxing the highest income earners, you reduce capital
formation
-With income, you pay taxes, and then with your disposable income
you spend or save it
-Most people spend most of their disposable income
-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)
-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
-This only helps the lowest income earners, and everyone else will
feel the negative impacts of this plan
-They need to raise the debt ceiling relatively soon
-It will replace individual responsibility with social
responsibility
-America became so prosperous because it encouraged individual
freedom/responsibility as well as low taxation, and government role
was very limited
-Biden’s current plan goes against those values
Useful Links:
Financial Survival Network
Michael Busler - Facebook