Mayor Pete and His 35-Percent Corporate Tax Rate

To help make Medicare-for-all a possibility, and cover the cost impact, Mayor Pete's idea is that you'd raise the corporate tax rate to 35-percent (currently, it's set at 21-percent).  So you'd see a 14-point rise on the corporate world.  The feeling is....they'd just give 14 points of their profit, to make this happen, and everyone would be happy.

Is this a realistic assumption?  No.

Once companies are given the 14-point rise....they merely insert that into cost, and it's passed onto consumers.  If you made a product that went overseas....you'd likely stop production in the US, and quickly move production into Mexico or Brazil. 

So that new US-made truck that you were going to buy?  You can figure that it's going up by $1,000 minimum.  That $900 refrigerator?  It's going up by $50 to $70. 

You, whether you like the idea or not....would be paying for Medicare-for-all....all by yourself.  Corporate would simply hand you the bill, and you'd pay it. Eventually, some idiot with the car industry would figure out that it's cheaper to make cars in Mexico, and they'd shift a lot of production there.....destroying US jobs, and raising the unemployment rate.

But hey.....this is the reality of Mayor Pete and how he promises you such a good deal.