[Biden's Tax Plan]

 

    President Biden's tax plan is certainty an interesting one. President Biden is working very hard to create

a plan for those that are in need but, to no surprise there is a price to pay for this for all of us not just

 the rich. From my understanding every ones taxes will be raised with the majority of the tax increases

 going to the rich. So taxes for most of us will increase form 21% to 28% which is not that bad of a deal

 and their will be more tax credits for families as well. All of this sounds absolutely amazing, however

I took time to think about the big picture and I believe this may push America closer to a market crash

 due to over inflation of prices. First lets talk about inflation. The definition of inflation is a sustained 

increase to prices within a period of time. Now as many of us are familiar with this pandemic a lot of

 people lost jobs.  

    Stimulus checks to help the economy were given to hold as many jobs as possible and help people pay

 their bills. Very important stuff and unfortunately we needed it! Now here is something to consider,

 even thought that needed to be done America is still trillions of dollars in debt to China so where did

 this money come from? I thought they may have printed more money, but through further research it

 seems the money is borrowed from the federal reserve which creates inflation. Now for those shopping

 for groceries or work in Walmart I am sure you noticed how much higher the price of groceries have

 been and that was just from inflation once. Biden's tax plan to raise taxes on investments, social

 security and wages for individuals that make $400,000 or more. Now a lot of you are probably saying: 

I do not make tat much why should I care? Well comment section glad that you asked! 

    Normally when things like minimum wage are increased for companies and taxes are too, companies

 tend to legally and illegally push back. This is usually done by sending a lot of money to an offshore

   bank account so that the reported amount made for the year is lower and reduces the taxes they

 pay. That is the first move, the second business will raise prices a second time as well as cut workers

 hours. Any one have that happen to them this pandemic by any chance?

 This will allow companies to keep their bottom line while still shorting hard workers who are

 struggling. This push back will now force the government to either give more stimulus borrowing from

 the federal reserve again or have banks make it cheaper to borrow loans. Either route creates a band-aid

 over a cut but does not completely solve the problem which will create? You guessed it, more

 inflation!!!

    Some of you are probably thinking what exactly does over inflation cause? The answer is lower

 value of the American dollar. If you do not believe this try researching the history of why America

 consumes things now and no longer produces. You will learn that we tend to borrow from

 underdeveloped countries out of god faith in the value of our dollar. Right now they allow us to borrow

 their money because our dollar haves value! If it keeps losing value and people no longer let us borrow 

then what will happen? China is starting to understand this and they are eventually going to want their

 money back that we owe them! If you take a look at New York city for example, most of the apartment

 complexes in Queens, and Manhattan are owned by china. Now we all played monopoly as a kid so we

 should know, if you owe someone money and can't pay what do they take? Property, and they are little

 by little buying ours. If this keeps up the American dollar will not be wanted or valued by a lot of other

 countries and the Chinese yuan will be desired forcing a change to our current system and possibly

 way of life. This is also why crypto currencies are becoming more popular. Trades with common

 people with out government influence and a digital value that someday the world can share and adapt

 to. No one knows what the future may hold but history does repeat itself and signs of a crash are

 happening. Be prepared my friends and work out a game plan for you and your families. I for one have

 cyrpto currency and a few plays that will help me in the event of a possible crash. 

(this is not financial advice, only invest what you can afford to lose.) 

financial institutions are great plays in my opinion as well since banks are federally insured. 

This means that if the economy crashes the government will bail them out. This is why most financial 

institutions are F. D. I. C insured. Investing in life insurance would be a safe move too. Some life 

insurance policies even allow you to borrow a percentage of the money from your policy in emergency 

situations. Definitely a topic for another day. Stay tuned for a post on life insurance and why we all

 should have some! 

References

Tax Foundation.org

 https://taxfoundation.org/joe-biden-tax-plan-2020/

Kiplinger

https://www.kiplinger.com/taxes/602109/president-bidens-tax-plans-for-the-next-few-years

Forbes

https://www.forbes.com/sites/johntharvey/2011/05/30/what-actually-causes-inflation/?sh=701a421bf9a9

Economicshelp.org

https://www.economicshelp.org/macroeconomics/inflation/causes-inflation/

Investopedia.com

https://www.investopedia.com/articles/insights/122016/9-common-effects-inflation.asp

ABC News Detroit

https://www.wxyz.com/news/coronavirus/where-does-the-money-for-stimulus-payments-come-from

The balance.com

https://www.thebalance.com/u-s-debt-to-china-how-much-does-it-own-3306355

PBS news hour

https://www.pbs.org/newshour/economy/why-does-the-united-states-hav