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Stagflation Is Worse than Inflation - McCain Does Not Know The Difference
With inflation, prices rise and eventually wages rise too - but not before everyone has to pay more... with less.
Stagflation is worse. Prices rise and wages don't. This is what we're experiencing now.
Wages staying flat, the dollar worth less, goods and energy costing more - the money we make does not buy the same quantity of goods, services and energy. The wages are not rising with the rise in prices - instead employers are laying off employees.
When prices rise, employers can't control the price of goods but they can control their labor costs.
McCain plans to tax people on the employer paid benefits they receive. The health premiums that your employer (might or might not pay) will be subject to income tax. Including these premium on your "taxable wages" can push you into a higher tax bracket.
He's not raising your taxes, he's raising your taxable wages therefore moving you into a higher tax bracket.
This should be an affront to proponents of flat tax.
Corporations are allowed to pay taxes AFTER expenses. After their utility bills, after their long liquid lunches, after their expensive car leases.
Individuals are forced to pay taxes on all the goods, services and energy required to function. Individuals pay taxes before they pay the car lease, buy groceries - BEFORE utility bills.
Disclaimer: I am a totally amateur economist, if you have corrections to my take on economic terms please feel free.
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