The Tax Policy Center, a liberal-leaning project of the Brooking Institute, is reporting that Biden’s tax hikes will hit the middle class hardest while abetting the superrich in avoiding taxation. So what’s new. This is always what politicians do; promise one thing and do the polar opposite.
Biden’s tax proposals are some of the most extensive tax increases we will experience. While his tax increases have been promoted as targeting the superrich as well as corporations, a quick peek behind the political puffery reveals the cold hard facts. This administration intends to increase the federal government coffers at the expense of the middle class while giving a tax break to the superrich and the mega-corporations.
The former administration, stimulated more corporate tax revenue by lowering taxes which resulted in more taxes being collected in 2021 from corporations, about 25% more in fact, than any time since 2017. The rebounding economy stimulated by these lower corporate tax rates ended up boosting personal income as well, so personal income tax collections soared to an all-time high as well…$2.052 trillion, to be exact.
The progressive ideology of increasing tax rates for corporations never benefits the middle class. It only forces those taxes which must be paid by corporations onto others. Numerous studies have confirmed that 50-70% of the tax corporations do pay is borne by the workers employed in those corporations, while the rest is passed onto the stockholders of those corporations. In other words, corporations DON’T PAY TAXES!
R. Nelson Nash, the author of Becoming Your Own Banker, frequently mentioned this fact in his lectures on the Infinite Banking Concept. He understood that the way money flows in our economy, corporations, when structured and run logically, never pay taxes. That is one reason he encouraged everybody to become their own banker.
Bankers are mere middlemen and women who have positioned themselves to profit off every transaction that passes through them without having to use, and therefore risk, their own money. In doing so, banks (which are mega-corporations) benefit from tax deductions that everyday citizens don’t get to take advantage of. Nash emphatically believed that bankers had conspired together with politicians, to control the flow of money in our society and therefore control society itself. After-all, everyone knows that whoever controls the money, makes the rules.
Our American experiment wasn’t meant for a few to control the masses. America was the first country in the history of the world, which limited government power by subjecting it to the will of the people. But our representatives compromised themselves by leaping into bed with bankers and other mega-corporations, turning the American dream into a nightmare.
Today our elected representatives call themselves leaders instead of servants of the public. Unfortunately, many people believe these corrupt politicians and bureaucrats really are our leaders. But in reality, they are selfish tyrants who seek power and money for themselves at the expense of those who repeatedly re-elect them to hold public office.
To be sure, money isn’t the most important thing in life. But it rates right up there with oxygen. Even Jesus spoke more about money than he spoke about faith and prayer combined. Learning to manage your money wisely and keeping it out of the hands of the bankers, politicians and mega-corporations, is one step towards reclaiming the American dream for yourself and your posterity.
When Jesus spoke to the multitudes on the mountain side, he said, “Do not store up for yourselves treasures on earth, where moths and vermin destroy, and where thieves break in an steal.” Today, saving money summons political moths and vermin to destroy what you have saved with their inflationary monetary policy. The dollar in your pocket today was worth 64% more just 21 years ago because of all the moths and vermin who have set monetary policy that has destroyed the value of that dollar. And the thieves who have been elected to represent us in government profit from our hard work by raising taxes instead of wisely creating government policy which encourages commerce and production, the very things which inherently floats all the boats in the harbor equally.
Taking back the God given obligation to become your own banker, i.e., the managing and controlling of your own money instead of allowing those who have compromised themselves, is a good start in salvaging the American dream. Like-minded people, pooling their financial resources together in order to have the leverage to fight against these tyrants, provides a tool which has been lost to the majority of “we the people”.
Mutually held life insurance companies, still retain certain privileges which were common prior to the big orgy the politicians, bankers and mega-corporations prearranged for themselves. Those who understand how these privileges work are building sustainable wealth in spite of how the tax code is adjusted or the inflationary monetary policy is dictated.
It all comes down to taking back the personal responsibility of managing one’s own affairs so that the interest paid or lost when using one’s own capital is accounted for. Bankers have become extremely wealthy, placing themselves smack dab in the middle of this equation. But you can minimize the effects they have on your own life by learning to keep more of what you make and leveraging it to return to you along with the interest you would have lost otherwise. Oh, and by the way, you will learn to accomplish this while keeping what you used your money to purchase in the first place. The good news, is you can protect yourself from the 30% increase in taxes which are being planned for the middle class, even as you read this blog.
Dr. Tomas McFie is a retired physician. As the founder of Life Benefits, he currently works in the financial industry exposing the fallacies of typical financial planning and helping clients keep more of the money they make with a formula that creates financial peace of mind.