What Sen. Warren is Not Telling You

Everyone in America (except the completely uninformed) is keenly aware of Senator Elizabeth Warren's many promises and policies. And they also know they will come with extreme costs. And we can also see by her following of millennials who have no clue about socialism that she has convinced many that these "freebie" programs - free health care, free college, free this and that - will be paid for by the richest of the rich. They believe this because she SAYS it, and because they WANT to believe it.

Here is what Warren and most other Democrat candidates are not telling people - either because they know it would destroy their candidacy, or because they are completely ignorant of how economics work, even in a socialist country.

Warren's plan includes over  a dozen new taxes. While many of those are aimed at the rich, some - like the increased payroll tax - affects anyone who works. But here is an ugly truth that is not being explained by Warren, or even by those who oppose her...

EVERY tax, without exception, is paid by the poorest consumers among us. If you doubt this, here is how you can prove it to yourself.

Imagine you are the CEO of Microsoft (or Apple, or any company). Warren slaps you with a tax. What do you do? You have only three choices:

1) You can swallow that extra cost of doing business, in which case you have less capital for creating new products, tooling up, and paying investor dividends. Less hiring, less output, lower market share. If this is your choice, you will soon be looking to brush up your resume as you will not be CEO much longer

2) You can lay people off, reduce benefits or both. This shows weakness in the company, which is soon reflected in the stock market. In this instance, the poorest (your employees) are paying the price, and so is your stock value and investors

3) You can raise the prices of your products/services. This is the only option that allows you to to retain employees and keep share prices up. If you are a good business person who does the job of protecting your investors properly,this is the choice you must make.

Now look at those choices again - each and every one puts the burden of YOUR taxes onto those who buy or use your products/services, and those who are below you on the economic ladder. If you increase the cost of computer equipment, small businesses and anyone else who uses such equipment end up paying your taxes for you. Now those people are faced with the same scenario - pass those increased costs to those below THEM. If that person is a small business, they pass it on to THEIR consumers. If that person is a wage earner, he either suffers those higher prices or seeks a raise, resulting in his employer having to raise prices even more.

All taxes - every one - is paid by consumers (primarily the middle class) and filters down to the bottom, the poorest among us. Unlike those above them, they have no one below them to pass the costs on to.

When Warren - or any politician - claims they will only tax the rich, they are lying to you, and they know it.