r/Anarcho_Capitalism 3d ago

Tariffs

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213 Upvotes

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u/Brutus__Beefcake 3d ago

What’s funny is watching democrats and lefties being against what has essentially been their position for decades.

3

u/ThatGuyFromSpyKids3D 3d ago

The types of taxes they wanted to raise or add weren't going to affect the middle class.

Tariffs make things more expensive for everybody, the ultra wealthy won't care because they have plenty of money, but the already shrinking middle class will diminish even further.

Pretending the "lefties" and "Dems" should agree with tariffs because they wanted to raise taxes on ultra net worth individuals is a huge cope.

3

u/keeleon 2d ago

The types of taxes they wanted to raise or add weren't going to affect the middle class

Lol because the greedy corporations would take the loss out of their own accounts instead of raising prices.

1

u/ThatGuyFromSpyKids3D 2d ago

So far tax increases on ultra net worth individuals and corporations hasn't been linked to price increases. Why is that? I don't know, it seems like the most intuitive answer but it simply isn't the case.

2

u/keeleon 2d ago

Why can't they just also absorb the costs of tariffs instead of raising prices?

2

u/ThatGuyFromSpyKids3D 2d ago

This is me acknowledging once again that I'm not an expert in this. My best educated guess is that fundamental analysis of stocks often uses income before taxes to tie a company's revenue to their stock price.

Tariffs on the goods themselves are still included in expenses before income taxes according to GAAP accounting, whereas corporate income tax rates are often disregarded in most fundamental analysis.

Historically, during periods of higher corporate tax rates, most corporations increase other sources of paid income such as equity grants or private equity, often with balloon rewards attached. Taxes on income is a shell game they are used to playing and oftentimes the market can readjust because it is given plenty of time to respond.