RUSH TRANSCRIPT reporter You ░░░░░░░░ Ben Ben for more ░░░░░░░░ on what Biden s ░░░░░░░░ proposals mean for your ░░░░░░░░ let s bring in ░░░░░░░░ Rochelle macro trends adviser ░░░░░░░░ partner and visiting fellow ░░░░░░░░ the university of San ░░░░░░░░ He s also the ░░░░░░░░ of the no podcast ░░░░░░░░ thank you so much ░░░░░░░░ being with us You ░░░░░░░░ the man to help ░░░░░░░░ down what that all ░░░░░░░░ Let s start off ░░░░░░░░ the corporate tax rise ░░░░░░░░ re saying likely rise ░░░░░░░░ 21 to 28 Now ░░░░░░░░ tax foundation says this ░░░░░░░░ going to decrease GDP ░░░░░░░░ 7 same with gross ░░░░░░░░ product capital and wage ░░░░░░░░ coming down Raising just ░░░░░░░░ billion in tax revenue ░░░░░░░░ they also say that ░░░░░░░░ that the economic cost ░░░░░░░░ this corporate income tax ░░░░░░░░ fall on workers So ░░░░░░░░ is the true impact ░░░░░░░░ a tax like this ░░░░░░░░ think that I agree ░░░░░░░░ the tax foundation Benjamin ░░░░░░░░ in fact let s ░░░░░░░░ at when we took ░░░░░░░░ corporate tax rate from ░░░░░░░░ down to 21 and ░░░░░░░░ went into effect you ░░░░░░░░ several years ago In ░░░░░░░░ years that followed we ░░░░░░░░ unemployment go down to ░░░░░░░░ lowest level in history ░░░░░░░░ most importantly we saw ░░░░░░░░ gains In fact in ░░░░░░░░ before the pandemic and ░░░░░░░░ shutdowns we saw the ░░░░░░░░ for the lowest paid ░░░░░░░░ workers in the United ░░░░░░░░ grow at a rate ░░░░░░░░ times faster than those ░░░░░░░░ with the highest paid ░░░░░░░░ wage earners in the ░░░░░░░░ States So clearly corporate ░░░░░░░░ taxes get passed on ░░░░░░░░ one of two places ░░░░░░░░ to the consumers if ░░░░░░░░ they take it out ░░░░░░░░ the hide of the ░░░░░░░░ So labor pays the ░░░░░░░░ for higher taxes Period ░░░░░░░░ of story and it ░░░░░░░░ been proven time and ░░░░░░░░ again Benjamin Moving on ░░░░░░░░ capital gains which they ░░░░░░░░ talking about doubling to ░░░░░░░░ 40 for those making ░░░░░░░░ million dollars I know ░░░░░░░░ dollars seems like a ░░░░░░░░ of money but there ░░░░░░░░ a trickle down effect ░░░░░░░░ isn t there Explain ░░░░░░░░ to us This week ░░░░░░░░ stock market reacted somewhat ░░░░░░░░ and then it sort ░░░░░░░░ bounced back But it ░░░░░░░░ not just stocks and ░░░░░░░░ It s investment business ░░░░░░░░ And businesses could be ░░░░░░░░ businesses So when you ░░░░░░░░ gains on investments you ░░░░░░░░ taking money out of ░░░░░░░░ investment pool And investment ░░░░░░░░ business in enterprise is ░░░░░░░░ the currency for investment ░░░░░░░░ innovation and right now ░░░░░░░░ re doing this over ░░░░░░░░ in my home using ░░░░░░░░ computer using Skype as ░░░░░░░░ way to communicate9 with ░░░░░░░░ The investment dollars that ░░░░░░░░ that innovation won t ░░░░░░░░ there if we take ░░░░░░░░ of it away So ░░░░░░░░ know jobs get created ░░░░░░░░ investment capital and innovation ░░░░░░░░ the thing that creates ░░░░░░░░ especially in an economy ░░░░░░░░ ours which is largely ░░░░░░░░ service economy Benjamin And ░░░░░░░░ very quickly the third ░░░░░░░░ income tax President Biden ░░░░░░░░ said he will raise ░░░░░░░░ for those earning over ░░░░░░░░ 000 but now there ░░░░░░░░ a bit of confusion ░░░░░░░░ that means per couple ░░░░░░░░ it s going to ░░░░░░░░ quite hard to pass ░░░░░░░░ a lot of Democrat ░░░░░░░░ are themselves wealthy Can ░░░░░░░░ get it through I ░░░░░░░░ if we focus on ░░░░░░░░ marginal tax rate raising ░░░░░░░░ marginal tax rate for ░░░░░░░░ top 1 of taxpayers ░░░░░░░░ is what they re ░░░░░░░░ about I think what ░░░░░░░░ is the state and ░░░░░░░░ deduction which went away ░░░░░░░░ the tax cuts and ░░░░░░░░ act back in 2017 ░░░░░░░░ think what s going ░░░░░░░░ happen that s going ░░░░░░░░ be on the table ░░░░░░░░ Because if you raise ░░░░░░░░ marginal tax rate I ░░░░░░░░ you know those blue ░░░░░░░░ campaign contributors are going ░░░░░░░░ say hey we want ░░░░░░░░ S A L T ░░░░░░░░ back So I think ░░░░░░░░ going to be a ░░░░░░░░ bargaining chip in those ░░░░░░░░ But there s a ░░░░░░░░ on the table There ░░░░░░░░ a lot and I ░░░░░░░░ you can get a ░░░░░░░░ of pushback from representatives ░░░░░░░░ both sides of the ░░░░░░░░ Ben Ben yeah yeah ░░░░░░░░ meanwhile the Republicans have ░░░░░░░░ their infrastructure bill which ░░░░░░░░ about a quarter of ░░░░░░░░ size and they would ░░░░░░░░ to use the money ░░░░░░░░ over9 from the Covid ░░░░░░░░ bill which hasn t ░░░░░░░░ been spent I don ░░░░░░░░ know if they can ░░░░░░░░ in the middle what ░░░░░░░░ there Mitch thank you ░░░░░░░░ much for breaking that ░░░░░░░░ and joining us this ░░░░░░░░ afternoon Thank you Good ░░░░░░░░ be with you, Benjamin.