Welcome to Ditch the Suits podcast, where we share insights nobody in the financial services industry wants you to know about.

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So buckle up and welcome to ditch the suits.

Hey, guys, Steve Campbell from Ditch the suits.

Going to interrupt right at the beginning of this episode, because normally, if you've been trekking along with Travis and I, we like to give you multiple episodes as part of a series.

And we have been currently through two episodes talking about maybe some misunderstandings, some things you've been tracking when it comes to financial planning.

We want to interrupt it because we actually want to release four to five episodes that are more current events right now that have to deal with income taxes and potential proposed legislation for raising taxes on corporations and high net worth individuals.

To really help you understand this is currently happening, it's being suggested, how is this going to impact you?

So we're sorry to disrupt this series.

The two episodes that have been a part of this series will be released later in November.

But now, from this episode on, you can expect four to five episodes talking about income taxes, the implications, and how it is going to affect your bottom line, getting the most for your money in life.

So thanks for sticking with us and you're going to enjoy this new series.

Welcome to ditch the suits.

I'm Steve Campbell, chief brand officer with Seed planning group, with my co host, Travis Moss.

Travis is our CEO at Seed.

For those of you who may not be familiar, Seed is a fee only financial planning advisory firm, and this show is all about us bringing our collective consciousness and years of experience to really help you as the listener get more from your money in life.

Brand new series today, current events.

Travis, why don't you kind of tee us up as to what this whole series is going to be about for the listener?

Everybody's favorite thing, I'm sure, taxes.

Oh, yeah.

Or maybe we could think about it like this, how to better understand what's going on with our taxes.

Or we're actually going to talk more about some proposed tax changes.

So there's some tax changes we know are going to come down the road.

For instance, we know the current manner in which most people pay income taxes right now, which predates the first Trump presidency, that sunsets at the end of next year.

And then you go back to how it was prior, and there's a whole bunch of discussion about whether or not those should be extended or some of the parts of it should be extended.

You've probably heard something like, if you make less than 400,000.

Nothing's going to impact your taxes or you won't pay any more taxes.

But if you make more than that, you will pay.

So what does that all mean and does it actually affect you?

And is it true?

Are there some places there where we need to read a little bit between lines or understand just because you maybe aren't paying the tax doesn't mean you're not paying for the tax.

And so there's some things there that we want to get into.

This first one, we really want to talk about the surprise effects of increasing corporate taxes.

So big discussion, big highlights.

And I think it's really important.

If you're listening to this podcast, you're probably investing.

You probably have some money invested or thinking about investing.

And if you're doing that, your investments are probably going to be in corporations.

And so anything that costs a corporation money, you should be particularly interested in.

And there's a big push here saying, well, jeez, those dirty corporations, they don't pay any taxes.

We need them to pay their fair share.

What we want to do is talk about that a little bit.

And at least if you understand a little bit more how corporations work and kind of the pass through of taxes through corporations and those types of things, how it all works, then maybe you can have a better, you can articulate this argument a little bit better, whether you're for it or against it.

But I do think that people need to understand it in general because they need to understand if you're going to be for against something, understand how it's going to impact you or if it's not going to impact you, understand how it might impact other people so that you can kind of have that to balance things out in your mind.

So when we think about factors that impact our financial health, we're really considering one of those factors being income taxes.

And not just the income taxes that we pay, but also the income taxes, Steve, that your children will pay someday or if you leave them an inheritance that they would pay on that inheritance.

I think that that's important for a lot of people that listen, I know we have people who are, you know, more advanced at life to getting near retirement.

They've been retired, thinking about their estate plan.

It's not just your taxes that are important, it's the tax bill.

You leave behind all those ious in your retirement accounts and capital gains and that type of stuff.

How are they handled by that next generation that we're talking about?

So it's not just us.

It's not just about our heirs, the amount of taxes that other people pay, and also the role of corporations in the financial system.

And we're going to make a really interesting argument today about how the government creates money, essentially.

But the first thing that money does is pass through corporations.

It goes through something, whether they're nonprofit corporations or for profit corporations, the money's passing through things to get into the economy.

And then as individuals, when we get that money, what do we do?

We go out and we buy services or buy things or save money or invest things.

Well, what's all that done with?

It's done with corporations.

So corporations are really, if you want to think about it, the heartbeat of the economy.

Because all, you know, if you want to think about the lifeblood of the economy, which is kind of the money flowing around it, it's all going through the corporations kind of at the middle.

So anything that you do to increase the flow of money into or out of corporations is going to impact how they operate and how the rest of the system operates.

So if you think about your body, if you're having a heart attack, obviously that's going to impact your body, or if you're, if you have a lot of cholesterol and your arteries are closing and it's going to be harder for you to catch your breath.

Same thing that we're talking about as far as how corporations work in the economy.

So we're going to talk a lot about that.

And what a setup.

I mean, for those that are brand new.

Welcome to ditch the suits.

Just so that you guys know, Travis and I style, we are not going to give you a three hour dissertation about proposals or tax changes, because that's too long.

But I will tell you that there's enough content here over four or five episodes, that's going to be 3 hours worth of content.

But we need to be able to stack these ideas so that you really understand it.

If we just fire hose shooting out everything that's happening, it's too hard for your day to day, or if you're in the car listening this to really take it in.

So this whole series, if you're new to ditch the suits, we usually introduce an idea and then have multiple episodes to kind of give you our experience, what we're seeing, and then give you some real practical takeaways.

Whether you use them or not, that's up to you.

But this is all about income taxes, how you need to make sense of what's going on, as Travis said, not just in your life, but the life of those dependent upon maybe even the companies you work for.

How does this all factor into it?

So I think this might be four, it might be five episodes, but it's really going to cover a broad spectrum to help you understand the role of it.

And as you said in this first one, we wanted to talk about really the role of corporations.

So you kind of go ahead before.

You go beyond that, though, the role of corporations.

But the payoff of that is once I think you understand what we're talking about today, you're going to have a different, probably a different perspective because we're going to talk about the real effects of increasing the taxes on corporations.

So you're going to walk away understanding that when you take money from a corporation, what happens is the corporation now has less money to work with, which means less money coming back to the shareholders.

So you're going to get less dividends.

So people who love dividends in their portfolio, that's going to be impacted, most likely lower capital appreciation of your stock investment.

So when you like looking at your four hundred one k and seeing the balance go up, that's going to be challenged because the corporations won't have as much money to reinvest to make that happen.

Higher cost of goods.

So the funny thing about corporations is they're designed to make a profit.

So if their input costs more and taxes are part of that, they're going to pass on more of the expense of the consumers.

So I can say, geez, I'm going to make those corporations pay.

But at the same time, by making them pay really means that they're going to charge me more to cover what they have to pay.

So it's not the corporations that are going to eat the bill on this.

They may pay the actual tax, but I'm going to pay for the tax through inflation, basically.

And it's not the good kind of inflation, which is just kind of like sometimes things are high and sometimes things are low because lots of people want something.

It's the bad kind of inflation, which is it's forced.

There's no way out of it.

It has to go up because there's more cost that's, there's, you know, maybe there's not good inflation or bad inflation, but it's, it's certainly on the bad end of inflation, being that there's no way to, there's no way for a corporation to control it.

If they owe a tax, they just owe the tax, right.

Well, and I think Travis, to that.

Point, final thing though, is optimization.

You got, I didn't mean to interrupt you there, but you're the optimization of.

Anybody who's ever worked at a big corporation knows the term optimization.

That means layoffs or that means less jobs or that means less promotions.

So if I take money away from a corporation, corporation is going to optimize.

They're going to cut costs.

And normally the costs come in people.

I'm sorry.

So go ahead.

Oh, no, no, you're good.

I think this whole series, as we were preparing for it, too, is when you hear things that are introduced at a governmental level or during an election cycle, like how do you make sense of it for your own life and what things mean, because it's easy to say things like greedy corporation should pay more or the wealthiest should pay more.

And it's, yeah, that sounds good.

I mean, people making a lot of money should pay more.

But how does that affect you once you actually unwind it and understand it?

So our whole goal with this is to just really talk about these things and what could happen if some of these things are introduced.

How you make a judgment is completely up to you.

But I think for setting the stage for corporations, like you said, anybody that's going to have, you know, their dividends impacted or their 401k, that's important to you and your lifestyle.

So let's unwind debt.

So, Travis, then we're talking a lot about corporations.

You kind of mentioned at the beginning, talk to us from a high level.

What is the role then of corporations and how does it impact us as individuals?

Yeah, so I kind of, I mentioned this already.

The government creates money.

They say, hey, here's money, and we're going to do stuff with this money.

And they do that in a lot of different ways.

But basically when they create money and they want to get money into the economy, it's going to come through corporations, it's going to come through institutions, and they're going to spend the money, they're going to give the money to employees, they're going to use the money to buy assets, they're going to go out and invest in different ways or whatever, but the corporations use the money and it gets to the personal level to me and you via the corporations, through paying our salaries and stuff like that.

And you could say even the act of lowering interest rates may allow corporations to have more money.

And then that gets into the economy through, I can pay people more and I can expand and buy assets and that type of stuff.

So government policy impacts how money, how fast money is going to move through the corporations to the individuals.

Well, and then one of the things that happens is that the individuals then take it and spend and it goes back to the corporations.

The government takes a piece every time you spend.

A little bit of corporations get in our chunk and then they redistribute it again.

So these corporations are naturally redistributing.

They're, they're, and anybody can participate with it.

When people say, well it's not fair that the corporations get the money, well, you buy stuff from the corporations.

You work for the corporations, you invest in the corporations.

And people say, I don't invest in corporations.

If you have a 401K or a pension and you buy mutual funds in your 401k or pension, chances are you are investing or your, the value of your assets are going to be backed by corporations or in some ways backed by corporations.

Right.

Unless you're completely in just government bonds or something like that.

And so, you know, these corporations that everybody's saying, okay, they need to pay more in taxes, but number one, there's real world ramifications.

But number two, you are participating with the fact that they're doing well.

You're, you're, you're getting money for the fact that they're doing well.

And you can, you know, you could make the argument that, geez, that CEO gets paid way more than I do for working for the company, but that's a different argument.

That's more of a, that's a much more complex argument.

The reality is though, anybody in America can take advantage of what's happening with corporations.

They can both make money and lose money because of how healthy the corporate community is.

Yeah.

And I think you might have piqued some people's interests that may not have realized kind of the role that they may play when you talk about corporations.

So that's a great start.

So then maybe then start to talk to us about, you know, within corporations, what, what happens along some of these lines if you introduce higher taxes or things come about, like what, what begins to unwind?

Well, let's, let's continue to maybe lay the framework and get to there.

So you work for a corporation, you get paid when you get paid, what do you do?

You pay income taxes, right?

Yep.

Now part of your tax is that Social Security and FICA that they take right off the top.

The business also pays a part of that too.

They pay essentially pretty close to the equivalent of what you pay on the other side.

You don't necessarily see it, but they're paying it as well.

So the first thing that happens, corporation gets money.

They pay you and government gets taxes on the money that they paid and they get a little extra tax as you don't see it, but the business sends it in on behalf of you to help cover your future social securities and those types of things.

We then take that money, we buy things and we pay sales tax now.

So when you buy, you go out and you buy, you know, soda or beer or clothes or shoes or a car, you know, you're going to pay taxes on those types of things.

So you pay sales taxes and then depending on what you buy.

So let's say you buy a house.

What do you pay when you buy a house?

Now you get to pay taxes for having the house.

Right now you're going to pay property taxes and local fees and all that kind of stuff.

Same thing with cars and stuff like that.

So now you paid this tax for the privilege of owning that.

So money that's flowing out of a corporation and then back into the cycle.

Think of the government as kind of like having toll booths.

And every time it passes through from basically one street to the next.

So one street being you, one street being the business, and then the business back to you every time it passes that intersection.

Governments, cha ching, cha ching, cha ching.

They're getting a cut of that.

You're throwing quarters in on the way through, or sometimes you're throwing big dollars in on the way through.

But there's, there's a toll booth type of mechanism.

And you know, when the company, when a corporation, when money flows through a corporation, they're using that to hire people or to buy materials or to hire other services that they then use to produce more stuff to sell to people, you know, whether again, services or products.

So these are what we're going to call costs.

So we're going to talk a lot about costs today.

But costs are what it costs the business to actually make money.

And there's a winner to every cost.

If there's payroll, that cost, the winner is the employee.

If there's, you know, oh, geez, we have to buy computers.

Guess who's the winner is?

The corporation that sells the computers and the guy who does the tech service on the computers.

Right?

So there's winners.

Every cost.

There's a winner to somebody outside of it or possibly even inside that corporation other than the corporation.

They're spending their money, which then props up the entire system.

So that money is going through there as costs, and costs are generally going to be deducted against profit.

So if I have a million dollar profit, but it cost me $800,000 to make that profit.

I actually don't have a million dollars profit.

I have 200,000 because I'm going to subtract my expenses out of my income, and so I'm going to get my net profit at $200,000.

And that's just a simple way to calculate that.

But then a company ends up with this profit and they say, hey, I got extra $200,000.

What should I do with it?

They may reinvest it.

They might say, you know what?

Let's go out and let's buy new trucks, because our older trucks are wearing out and we're having to spend a lot of maintenance, and we have these delivery things that we do, and we need to better do that.

We may need new kitchen equipment for the restaurant or new printing equipment in the warehouse or something like that.

Or they save it for a rainy day.

They go, you know what?

This was a good year.

All years are not good.

Sometimes we have a minus.

Let's put this away and let's have savings for it.

Or they say, you know what?

We got so much money already, there's nothing left to buy.

There's nothing left to save.

We're going to give it back to our investors through what's called dividends or share buybacks or something like that.

So they distribute it back to the shareholders.

So if it's reinvested, that's normally going to be a cost.

They're going to get to deduct that in some way, probably.

So that's where the business goes out and buys a new warehouse or buys new trucks or hires more employees or something like that.

So that's part of, that's essentially a cost, right?

So we're back to that cost thing.

And then what happens, though, when the company reinvests its money, you're the shareholder, right?

So if you, if you own this company and you know, it's a, your 401k through a mutual fund, or maybe you own it, an IRA outright, you, then when that company reinvests that money, that money is now, whatever that money bought is an asset of the company.

Now, the, theoretically, what happens is the value of that company goes up, which is why your 401k balance would go up.

So you're actually getting the reinvestment of that money.

So if there's less money to reinvest, if a corporation is, let's say, not allowed to reinvest that money, or if they take away the tax deductions on that or if, yeah, so just if there's less money to reinvest you're getting less.

There's less appreciation on that.

But more importantly, what happens when you decide, okay, that's been great company.

You've been reinvesting this money, but I'm ready to retire.

Give me my money back.

So you go out to the stock market and you sell your investment.

You now get money back.

Well, that's profit to you.

Now.

You put in $100, you're getting $150.

That $50 difference, that is now going to be taxed.

So you are going to tax.

So even though the business was able to deduct it and grow, because it was able to deduct that expense, because it was able to deduct it, it had more money to invest.

So it had more money to cover costs.

The value of that went up.

Yep.

Nobody's paid taxes on that yet.

But when you sell that for retirement, now you're going to pay taxes on it.

So one of the issues with saying, hey, these corporations, we should just tax them more.

There's already somebody paying the taxes on what they're making.

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Yep.

When I think you had a really nice distinction a few minutes ago as you led into a very different conversation.

If you are frustrated at the CEO's making crazy amounts of money, we're talking about corporations.

And so I think there's a lot of listeners that probably work for great companies that have shareholder buybacks, dividends, they love the place that they work.

So it's not that every single company is corrupt or evil, but it's this notion that we should just be taxing corporations more to put money, more money back into the system.

And so I think that was a really nice explanation of how corporations work and the benefit that you as a listener are getting from.

As companies grow, you're potentially growing with them.

So if you tax corporations more, that in tunes means that you may have less in your overall 401k or in your investment.

So it is impacting you.

Even though we're pointing the finger over here and saying this must be done, you are on the end of that other stick that's getting affected by it.

So that's really important.

So then, you know, you talked a little bit about the stock buyback.

If there's anything there you still want to say, talk about it.

But I think also then segueing into this idea of how corporations pass through income, I think is a really cool example for individuals to understand how that works, too.

Yeah.

So like you mentioned there, though, there's ways that corporations are going to distribute money back to shareholders.

There's, there's.

And a lot of this is under fire, too.

They're trying to.

One of the things that they're trying, that they're talking about is requiring companies to pay a certain amount of dividend back to shareholders.

That immediately makes money taxable, and it reduces money that's going to be available for reinvestment.

And it forces not only the corporation to pay more income taxes, but it also is going to force the individual to pay more income taxes, possibly much sooner than you just have less control over forced dividends.

But there's two ways that the company typically is going to give you money back.

One way is that they're going to give you a dividend, and the other way is that they're going to do something called a stock buyback.

And so people have heard this.

All those greedy companies, they just keep doing stock buybacks, and that's the only reason why the market's up.

Well, what stock is, is a company issues stock when it needs to raise money.

So if I don't need to raise money, I could own 100% of the company.

But if I want to raise money so that I can get bigger, I might say, hey, Steve, would you like to buy some stock?

I'll issue you some shares and you could maybe own 1% of the company.

But what you pay for that is going to go to the company so the company can go out and buy stuff.

What happens on the flip side, though, now the company has lots of business.

And I go, hey, Steve, you know, you had invested in us a long time ago.

Would you like us to buy that stock back from you?

And a lot of times you might even pay a little bit of a premium for it.

You might be like, we'll give you an extra dollar or so a share than we otherwise might have for what the market is currently going for, to take those shares off your hands, which is how it pushes the price up.

And you would say, hey, that's great.

When times are good, companies shrink the shareholders that they have or the amount of outstanding shares.

And when times are bad, they expand it.

So if they never shrink it, then what happens when they actually need to go out and raise money?

Because times are bad.

They've got this bloated shareholder base and everybody's already full, so they want to shrink it when times are good.

Now, the interesting thing, though, is when a company gives you a dividend or they do a stock buyback, they don't deduct that money.

They do pay income taxes on that money, or it is, it does go through their claimable income.

Whether or not they actually end up paying has to do with a lot of other things like depreciation and other things that are going on.

Do they have losses from someplace else that's offsetting that income?

But it is taxable income to them.

So they're not getting a tax break to give you money, they're paying taxes on it.

And then when you receive it, you're going to get a tax bill with it, whether it's a tax bill for today or whether it's a deferred tax bill.

So they're not getting away with anything.

Right?

When they give you that money, they're paying taxes and then you're paying taxes.

So think about that as almost like double taxation.

Yep.

So, yeah, if you buy a company and it goes up in price and it comes back down and maybe it crashes, you can sell and get a loss.

But most people when they buy a company on a long term, they're going to end up with some kind of, not only dividends or, yeah, some kind of dividends that they're paying as they go, or they're going to get some kind of capital appreciation, they're like, I guess just to hammer the point, you're the owner of the companies are going to pay the taxes.

And if you own mutual, like if you own an S P 500 mutual fund or a Russell 2000 or something like that, you're going to own most of these companies that people are talking about.

They need to be paying more taxes and you need to be thinking about, but I'm going to pay taxes when I use the money anyway.

So we're really talking about taxing money that's already been taxed.

And what we're talking about right now is taxing it even more.

Hey, guys, Steve Campbell with digital suits.

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But if you haven't, also, we would love for you to leave a five star rating and review.

Your rating and review will let other podcasters know the show is worth their time.

So let's get right back to the episode.

And thanks for listening to ditch the Suits podcast.

Yeah, and I think you had a great point in here, too, is really the brunt is being paid by the investor.

So even though we want to be potentially taxing these corporations more from that story that you just kind of walked us through an analogy as an investor with these shares or dividends too, they're also paying part of the tax too, as well, so it's not just affecting the corporation.

And so anything else in that section that you want to go over that you think would be helpful?

Because I know we have some big takeaways here.

Yeah, I think I would just kind of maybe bring all that because I know we had tons of notes in this section and I kind of sliced and diced them.

But you're doing great.

Basically, the more taxes that the corporation pays, the less capital appreciation you're getting, the less dividends you're getting, less dividend buybacks you're getting.

Right.

What you're doing is you're restricting what the corporation can do.

That's money, which is going to impact how much money you ultimately end up with from your investment.

Or if you work for the corporation, it might impact whether or not you're getting raises.

You know, if CEO is getting paid a million dollars and you're getting paid $50,000 and we create extra taxes on the CEO, CEO is probably not going to be, geez, I guess I should take a pay cut and pay my employees more and pay more income taxes.

They're probably going to say, I need to figure out a way to make more money so I can pay the taxes.

And one of that, one of those issues might be, I can't pay people more.

So there's a dynamic here that we have to, there's a cause and effect that I do think that we have to understand.

And again, CEO compensation, I think is a completely different discussion, but I think it's relevant across all industries, nonprofit academia, everything, to have that conversation about how much are the people at the top versus people at the bottom getting paid.

I think that's a.

But it's a totally different discussion.

But ultimately, the less money or the more taxes that a corporation pays, the less money that shareholders get and shareholders are already paying taxes once they get that money.

So, and just to clarify that, too, if you have a retirement account, yes, you're not paying taxes when you get that, those dividends or that capital appreciation on the stock when you sell it, but you do when you take it out of the account.

Yep.

And so it is directly impacting you because all the money that the corporation makes that comes to you in the form of dividends or share appreciation is going to be taxed to you.

When you take it out of your account or your kids or somebody, it's going to be taxed.

So it ultimately ends up in your lap.

You are the one paying the tax.

So if we're out there shaking our fists saying, yeah, you know, corporations should be paying more in taxes, just realize, folks, then you're also going to be paying more in taxes too because you participate in that so great setup for the importance of corporations and how it works with taxes.

So then you have being thrown around some different tax proposals and kind of what's being implemented.

So then, Travis, talk to us about what is the tax policy being recommended around corporations at this point?

Basically, there's a lot of them.

This one that we're talking about today, and we'll get into more in the following episodes, but the ones that we're specifically talking about today is they want to increase taxes to the corporations.

They want the corporations to pay a higher rate and they want some minimum taxes.

So like, corporations can't pay zero.

They want to make sure that they're paying a certain amount of taxes no matter what, which really gets to, you know, there's a lot of other tax laws.

And the way that a corporation can be profitable but still pay zero in taxes has to do with real estate and carry forward losses and all kinds of other things that they do, right.

So it's not so much the corporation doesn't pay taxes because they're greedy.

It's because of how tax law is created that allows them to use deductions at certain times and roll income into other times.

So it's a lot more complicated than that.

But what they're really saying, if you wanted to change the, take the politics out of this, if you wanted it to make it less of a political statement of those greedy corporations should be paying their fair share, what you would really be saying is shareholders should pay higher taxes.

Shareholders include anyone that owns, like I said, the mutual funds, investments in the stock market or pension because it's the shareholders that are going to get less returns because of the taxes.

So it's the shareholders that are paying this and it's the customers that are paying this.

It's the people who go to the grocery store and now we'll have to pay more because the corporation has to pay higher taxes and it has to somehow cover those taxes so the customers pay more.

You can call those shareholders as well because a business is nothing without customers.

Right.

So ultimately it's the shareholders that are going to pay for higher corporate taxes, not the corporations.

And we've all been in situations where you're pointing your finger at somebody else and then you realize that the finger is also pointing back at you.

That this is a hard reality for people that just don't understand how income taxes work.

And the tax on corporations to realize it's you, the shareholder, that are ultimately going to be paying higher taxes.

That's a really harsh reality for people that might have said, Travis, I didn't understand that.

So thank you.

So then as we hit on a couple of these points, I think this is really good just to kind of walk back through, regardless of how people feel, what happens when corporate taxes get raised?

Corporations, like we've talked about, corporations have less money to pay shareholders and dividends.

So your dividends are going to go down.

Corporations have less money to buy back shares.

Yep.

So, so you're going to get less capital appreciation.

I think you mentioned a little bit right before this last segment here, you know, corporations pay higher taxes, you'll pay higher tax.

I think what you were saying there is not that both sides are going to pay higher taxes, although there are some situations with some of these law changes they're talking about where that could happen.

I think really what you were saying is corporations will pay higher taxes and that's going to cost you the equivalents of those taxes.

Correct.

So I just wanted to kind of clean that up.

But corporations have less money to pay shareholders.

Corporations have less money to buy back shares.

Corporations pass on the higher taxes to consumers, which creates a rising cost of inflation.

Remember the bad inflation?

The inflation, you don't have control over corporate.

And then of course we'll blame it on corporations.

But corporations just passing through a government tax.

Corporations will optimize.

So optimizing their operations normally means laying people off, cutting jobs, closing facilities, you know, you see destroyed communities all the time because a corporation pulled out.

Guess what happens if you create super high tax environments, which is what we're talking about.

We're talking about around the world, this being a very, very high tax environment for corporations.

Corporations leave and so if corporations leave, what happens to your community?

So you wanted them to pay more?

Well, so they left and they took all the jobs with them.

What happens then?

So I think the big part is you just nailed those points.

We always want to leave listeners with solutions for each of these.

So hit us with what would be kind of a solution.

So we've raised your award is what you're talking about.

Just people, I think in general need an opportunity to learn what the role of corporations are.

You know, we love to vilify corporations and there are some bad corporations out there, right, where a corporation itself is never bad or good.

It's the people running the corporation who do bad or good things, right.

So it's easy to vilify them and blame them for our problems.

But we need to understand the role of corporations and corporate governance.

And that's when you can get into whether or not people are getting overpaid.

But there's a role for corporations and then we need to understand that the value of a corporation represents whether or not you can afford to retire as an individual citizen.

So you might think it's got, you know, it has nothing to do with me.

If that corporation has to pay more taxes.

It absolutely does.

If you, if you come down heavy handed on the corporations, you're going to challenge your, whether or not your pension plan is solventhe, whether or not you, you know, inflation goes out of control and that pension plan can keep up with the cost of goods, whether or not your 401k grows.

The more you take out of corporations, the less that stuff is going to be positive.

Let's see here.

Understand that you already have to claim the gains on corporations.

The corporation makes money, you make money.

When you make money, you pay taxes.

So any increase on the tax rate of the corporation is ultimately going to be an increase on your tax rate.

So there's, there's just no way out of this to say, hey, it's just them, it's not me, you know, the only way out of it is to say, I don't have any investments.

I don't believe in investments, I don't have a job.

I don't believe in working.

I'm just going to live off of whatever the government gives me.

Those are the people that are not going to be affected by this.

Everybody else is going to be affected by this.

And even those people who don't have a job and don't have investments and just want to survive off the government, they still want to buy stuff.

Sure.

Right.

So it is going to kind of trickle down into them.

And just consider that corporations are not the reason we have a debt problem.

We're blaming them on the debt by saying we should tax them more.

They're not the problem.

The problem is we spend irresponsibly.

Boom.

It's not that corporations made us go into debt, it's that we went into debt because we're not responsible.

And then we want to come back and we want to fix the problem or make it look like we're fixing the problem.

And really what we're talking about, when they're talking about taxing corporations more, they're not talking about paying off the debt.

They're talking about creating new tax credits and subsidies and stuff like that.

They're basically going to spend the extra money, not save it.

So when we look at this and we say those greedy corporations and we get our pitchforks out, we really need to stop for a second and say it's not the corporations that we should be frustrated with.

It's the people controlling the purse strings that aren't using what is actually given to them in the trillions and trillions of dollars a year in taxes.

They're not properly managing that money.

Let's work on managing the money better and let's think about how we can be involved in that process more so than why don't we go and place blame on somebody and try to take more from them, which ultimately takes more from us so that people can continue to be irresponsible.

Man, some of the best nuggets are the last few moments of a ditch the suits episode.

Travis, nice job.

I think that was a really good explanation.

Hey, if this is your first episode of Ditch of Suits, or you've been with us for the last few years, smash that like, button drop a comment below.

Let us know if you learned something in this episode because that's our whole point, right?

We want to help you get more from your money in life.

We're going to have a number of more episodes in this, talking about what happens if you tax unrealized capital gains.

That's our next episode.

We're going to get into it like what's being proposed and how is that going to affect you?

So I think for a first overall episode, this was a great start.

Don't forget you can watch along with us on our YouTube channel, which is at NQR Media that's not quite right.

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So stay tuned.

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If you got any questions, reach out to Travis and I.

But as always, thanks for being our guest on ditch the suits.