If Obama gets elected and gets his way, the Capital Gains Tax will increase from 15% to 28%. As some have tried to explain, corporations do not pay taxes. They merely process them. Consumers pay all “corporate” taxes, and any cap. gains increase would directly affect American consumers, i.e. everybody.
Let us consider that while the very wealthy would not see this as a big issue since they will be the ones raising the prices, the people hardest hit by a capital gains increase would be the lowest wage earners in the work force. They will have the hardest time since they will almost certainly not be seeing any raises anytime soon, if not experience a wage decrease, or be put out of work completely so their employers can compensate for the higher taxes.
That being said, let’s take a look at some numbers. According to the federal government, the average household spends $41,554 per year. To adjust for Obama’s tax increases, a corporation will have to charge an additional 1% price increase for every 5% markup they currently have.
Most cars carry a 15% markup including factory and dealer profits. Therefore a $15000 car will now cost an additional $450. If you by chance can’t fit your family into a Ford Focus or Chevy Cobalt, you might need a bigger vehicle. Let’s say you get that $30,000 SUV with the 25% markup. It’s now a $31,500 SUV. Sorry. It’s all to promote economic justice though. Vote for Change!
Furniture has anywhere from 100% to 600% markup depending on how much the furniture retailer is soaking their customers. If you just split the diffrence and call it 350%, that $1000 sofa just cost you an additional $155. This is pretty much true for most large appliances and electronics. Good luck on that TV, fridge, stove, or microwave.
Even the dollar menu at McDonalds will now be the $1.10 menu.
If you can assume (and this is on the very low, conservative end), Americans pay about 15% markup across the board. So the $41,554 that is spent becomes $42,800. Somehow, Barack Obama just spend another $1,246 of everyone’s money. That’ll put a crimp in Christmas. Of course, no one is going to be getting a raise to correspond with Obama’s tax increases, so they’ll just have to buy less. That’s really good news for those evil corporations isn’t it? When they start to go out of business, Obama will be able to choose whether to subsidize them too, or just put price controls on the remaining corporations. If he’s going to turn this into a socialist state, he might as well go all out.