Corporate income tax hurts retirees
The latest idea of those in control of the Federal Government is to drastically increase spending and to pay for this with an increase in corporate income taxes. This appears, on the surface, to hurt no one except those hated big businesses that make huge profits at the expense of the working class consumers.
But who will really pays those taxes? Corporations are businesses owned by thousands of individual stockholders. Many, if not most of these, either outright, or more commonly, in funds that are retirement accounts. When the profits of the corporations are reduced, the dividends paid out will decrease and the value of the stock will fall.
Foreign entities also own US corporate stocks as they are good investments. When the value of the stock falls, they will sell off their stock, causing a further decrease in the value of the stocks. The bottom line: the increase in corporate taxes will be paid by retirees and those who have invested in IRAs and Roth IRAs in hopes of someday having a comfortable retirement. It is amazing that no one in the Federal Government, or elected official, has mentioned this as it will undoubtedly be one of the end results.