 So the Prince of Investment here live on Thin Tech, Hawaii, I'm your host, Prince Dykes, coming all the way live from a beautiful city and state of Denver, Colorado, via the also beautiful Halu'la, Hawaii. And as always, I don't have a lot of time, and I definitely know you guys and girls don't have a lot of time, so we're going to jump straight into it. So if you're following the media, and if you don't know, if you've been following the media, you know, dominating the headlines right now has been President Biden's infrastructure plan, or known as the American Jobs Plan, Jobs Plan, Made in America Plan, so many other plans, infrastructure bill, what would the case be? So as we know, President Biden a few weeks ago, last month, he announced in Pennsylvania that he wanted to, he announced his whole idea of the infrastructure plan. He wants to build an infrastructure that builds new railroads, invests in the green energy, do all sorts of great things to bring us up to speed, and to make us competitive globally. Do I agree with, do we need to upgrade our infrastructure? Yes, because I remember I spent a lot of time in Japan and in foreign countries, and it felt like they had some things that we should have had a long time ago, being the world most powerful, and the world's most wealthiest country. So I do agree that we can use infrastructure, infrastructure will put people to work, it will create jobs, as to why he's naming it the Jobs Plan. But as we know, in America, not in America, but in the world and life, there's no such thing as a free meal. So we're going to, in this episode, we're going to talk about President Biden plan, we're going to talk about how he plans to pay for it, the pros and the cons of that. And then we're going to talk about Jane Yellen. Jane Yellen, she is calling for a global tax. Why is she calling for a global tax? Who will be the real winners and losers in the global tax? And then we're going to get into my overall thought process of this whole thing if we do a global tax mixed with President Biden's plan versus against the President's Biden's plan. He announced his plan as part of, this was part of his campaign. It's called the Made in America plan. And what President's Made in America plan, what his plan is to do is to invest in the green energy, how he's going to invest in green energy. He's going to give tax breaks to people who incentivize going green. For prime example, let's say if I were to get solar panels on my house, let's say the solar panels cost $20,000. When I go to file my taxes, I can probably claim $7,000 and get a $7,000 return, bringing down my overall cost of solar panels down to $13,000. So tax credits is a monetary way, is a physical policy way that the government intervenes and help out with the jobs plan, right? This is what President Biden is pushing for. He announced this, hey, I want to go out. I want to help America. I want to get us back to work. All those are the great things. Sound great. Hey, some of the things he named in there, he said he wants to eliminate companies from going overseas. He wants to bring jobs back to America. He wants to invest into electronic vehicles. He wants to invest into green energy, railroads, railroads, roads itself, all sorts of things. Sounds great, right? But what is the hook? How much is this going to cost us? They're estimating you've seen most reports say around $2 trillion to $3 trillion. $2 trillion, $3 trillion, around for the heels of a $3 trillion plan that we just passed about a month or two ago, where most Americans received, not most, but many Americans received a $1,400 stimulus check. So we just had this huge stimulus check that got passed. And now you're looking at President Biden coming through and he's saying, hey, you know what now I want to get for my infrastructure plan. I want to push for this. First question sounds great, President Biden, but where's the money coming from? We're already America's already trillions of dollars of debt. How are we going to pay for it? I just want to pay for it, ladies and gentlemen. Corporate taxes. So let's go back to President Trump. When President Trump was elected, he was sworn in office in 2017. One of the first things that he did, he said was he lowered corporate taxes. Corporate taxes was 35%. He lowered corporate taxes down to 21%. And then from 2017 to 2021, most investors have been pretty happy because when you lower taxes, that's money that automatically go to corporations. You know, it's just if somebody came in here and said, hey, you know what? You was going to pay $5 in taxes. You only have to give me $1. That put more money into corporations and hopes that corporations will hire more people, grow all these other things like that. That was very good for investors. Investors benefited big time from President Trump's, not what corporations and investors benefited big time from President Trump's tax cut from 35% all the way down to 21% and a 14% cut. Great. Now, what does this money do? This money, this ends up on a company's balance sheet. It ends up on a company's income statement because the less money you pay in taxes, the more money you get to put it in pocket. The more money you got into your pocket, the more investors are attracted to your company because we see your revenue is growing, right? Now, we come to President Biden. President Biden says, hey, corporations, we got people like Amazon who's paying zero. We got corporations going overseas. We got, for a prime example, many Nike products are made overseas. So companies are being made overseas and they sell the products over here. They're making huge profits. They're making money and they're not paying their fair share. So, hey, if I can raise taxes, that's what President Biden says in my best President Biden voice, if I can raise taxes by 7%, he wants to raise it from 21% to 28%, which is 7%. I want to raise it to 28%. And if you allow me to raise corporate taxes up to 28%, guess what? I'll pay for this whole infrastructure plan in 15 years. So all this is, is a small investment. So now, when I look at this, sounds great, but guess what? Everything comes with the cost. Now, he's saying that, hey, I want to pay for this with corporate taxes. Let's look at the pros and cons of raising that 7% in corporate taxes. When you raise corporate taxes domestically here in America, that incentivizes companies to go overseas. That incentivize companies to find ways to find new tax havens to go overseas to take their jobs overseas and things like that. Now, that's the cons of it. Now, the pros of raising corporate taxes, the only pro that I see is that, hey, yes, we can fund what we want to do. That's a good thing. Maybe it may help put some government contracts because that's where the money is probably going to go. The government is going to take it, it's going to issue contracts and companies are going to be for those contracts, things like that. That's the pros. You know, everybody wants to live in a, I want a new paved road. I would love a new paved driveway. I would love a new paved, that is wrong my driveway now, but hey, you get a new one, that's nothing wrong with that. We all want that, right? But we have to weigh out just like anything we like. What are the pros, what are the cons? How much is this really going to cost us? So when we look at what he's saying, he's saying that, hey, when you look at the pros and the cons, that's pretty much the pros and cons I can think of immediately. Now, later on in the show, I'm going to go deeper into some of the pros and the cons of that. So President Biden said, hey, if you allow me to raise corporate taxes by 7%, they were 35% before. We've lowered it all the way down to 21% and we can raise it up by 7%. I will pay for this entire bill within 15 years and we have companies paying their fair share of corporate taxes. And we close these loopholes. Also, he wants to close loopholes. He wants to incentivize people for keeping their companies here. I do agree with that. I do agree with incentivizing companies that stay here in America because many companies, what they do is, you know, many times you may call for, many people may call a help desk and help desks would be way over in the Middle East or way over China or wherever the case may be or maybe India, nothing's wrong with those countries, but those are jobs that are not in America. And the pros of this is, when companies go overseas, usually it allows us to get cheap products, right? If it would be a great idea if Apple made the iPhone in Texas, it would be a great idea if Nike made the shoes in Colorado. It would be a great idea if so many delicious goes on, how many people get their things at Tesla made all their cars in Texas. That'd be a great idea, right? But how would it affect the consumer? One, Americans, I'm American myself for 36 years, but a lot of us, we like to make a lot of money and do the less work as possible. That's just a human way, definitely the American way. Meaning we don't really want to work four hours a week. We only want to work four hours a week at a max. And that four hours better include four or five breaks, and it better include a lunch. And we want it to include a paid vacation. And we want healthcare, dinner, all these other great things. And we want great, pristine working environments that are totally safe. That's what we want as Americans. Those things are very expensive. So we have a very high demand, but we have a very low input when it comes to corporations wanting to stay with us. In return, since most American workers compared to the rest of the world, we are pre-model workers, that price tag is usually passed to the consumer. Could you imagine an iPhone costing $5,000 or a pair of Nike shoes costing $800? I know some are out there. I'm just talking about in general. We don't want to pay those prices. Americans, we want great jobs. We want low working hours, high pay, but we also want cheap prices as well. That's not really we are, right? But everything comes with a cost, like I said earlier. Now the thing what President Biden is doing now is he's saying, hey, I want to incentivize people who stay here. If you stay here, maybe you can give a tax break to companies that stay here in America. Now with that being said, here comes Janet Yellen. Why you guys and girls tuned in today? She comes in, she says, she's the Secretary of Treasury. Janet Yellen, she's the Secretary of Treasury now. She was the Fed Chair under President Obama, but now she's the Secretary of Treasury under President Biden. She now wants to push for a global tax. Why does she wants to push for a global tax? She's saying, hey, how about instead of America charging 21% and Ireland charging 3% and China's charging 50% and this country charging this percent, how about we all get on the same page? Because if we don't get on the same page, what's just gonna happen? We're starting a race to the bottom. So for prime example, America lowers its taxes to 21. China lowers its taxes to 18. Then Ireland lowers its taxes to 15%. Then I lower my taxes to 14%. So she says, so race to the bottom, everybody is lowering and lowering their taxes, which could be bad for the government because how does the government make money? Taxes. And the more we lower taxes, the less money the government spends. Now I do agree with her on that. I can understand an analogy that people could be starting a race to the bottom, creating a deficiency in the money. But we gotta look at America right now. America, we are not great stories of money. When you look at it, we have how many trillions of dollars of debt and we just turn the printer back on that I don't see anybody talking about paying off that debt or paying back. We all got social security numbers. The money is taxed to us anyway. So that's why most people don't like paying taxes because we feel as though our tax dollars are being wasted, wasted, which that's to each his own, right? Nobody wants to pay more taxes. Everybody wants to keep as much money as possible. They want to defer and keep as much money as possible, right? So ladies and gentlemen, we're gonna take a quick break here and with this quick break and we're gonna come back, we're gonna finish speaking about what Janie Allen said and then I'm gonna give you my take on exactly how that affects investors, how that could potentially affect corporations and stocks and as investors, that's all we really wanna care about. What does this mean for me? With them. What does this, what's in it for me? How does this affect us? So y'all stay right here. We're gonna take a quick break and we'll be right back. You know, the Prince of Investment with Prince Dax. Secretary of Treasury Janie Allen, she says, hey, we need a global tax. Why do you think she wants a global tax? Because she already knows if we hike up taxes, corporations are gonna run to other countries. Common sense. You know, corporations, what they do is called profit shifting. That's a cool word for a corporation where they claim their profits in the lower tax paying companies. For prime example, we all heard of companies going off and going to Ireland and the caveman islands and Ireland, all of the good stuff like that, right? So Janie Allen says, we need a global tax to stop people from running to other countries to lower their taxes. Because what countries do, Amazon or whoever, Nike, not saying they're doing this in particular, but how the practice is set up is that, hey, America, it's a 21% taxes, but in China, let's say if it's a 10% taxes. So when I report my taxes, all my big profits, I say they were made in China, so I only pay 10% versus paying a 21% here in America, right? So Janie Allen says, hey, you know what? I know what we'll do. How about we create a global tax? Everybody play a flat rate across everywhere. So we can stop this race to the bottom. Everybody's trying to lower their taxes so they can stay competitive so company because America knows, hey, the higher we raise our corporate taxes, they're just gonna run to other countries. The opposite side, countries know, the more we lower our taxes, the more attractive we look for companies to come here, especially America. America has the most profitable companies. So countries intentionally lower their taxes so that America, so that American companies can come to their country and claim their profits because they're saying, hey, we can get 10%. Hey, we won't take 21% like America. We'll only take 10%. So in return, America says, let's lower our taxes so we can be competitive. When America lowers its taxes, China may lower their taxes some more. Now, we're not saying this is happening in particular with China, but on a global scale, this is happening. This is why Janie Allen has come together and said, hey, look, how about we all stop this race to the bottom and quit lowering our taxes? How about we just all agree that our taxes are gonna be flat across the middle and when they're flat across the middle, these corporations have nowhere to run, so we all get our fair share. Now, as an American, great idea because you know you have the most profitable companies and you know your profitable companies, as soon as you raise taxes, they're gonna go to a country with lower taxes. We know that. But what smaller country in the right mind, what incentive do they have to raise their taxes and agree to a flat tax rate? So let's say if I'm a little small island and currently my taxes are only 3% and American companies love to come to me and use my tax breaks and profit sharing, right? Now, if I agree with America and says, you know what, how about we all charge 21%? Now, if I'm charging 21% like everybody else, what do you think that American businesses are gonna do? They're gonna stay in America. They're not gonna come to me anymore. So the question is what incentive does the smaller countries have to agree upon a global tax? How does that make sense for them? Who would agree upon that? Now, as Americans, it's great, great idea because we get to cut down and eliminate tax havens because we know the country's gonna find out. We got very, very smart tax professionals and people who've been doing taxes for 80 years on an international scale and they're just gonna find another way to get around your taxes, right? So ladies and gentlemen, that's what I want you guys and girls to think about. One of the ways that Jenny Yellen is trying to say the global tax is a good idea for some reason, but I'm trying to wonder, why would the smaller companies, they're lowering their taxes because they know the big profitable companies are in America, they're lowering their taxes in hopes that America would come to their country. Why would they hike them up to be on the same playing field? The American companies would just probably stay in America, makes no sense. So now when we look at that with corporations and taxes, you gotta ask yourself, if corporations, when taxes are raised on corporations, who do corporations do? They got a few things they're gonna do. One, you can lower their revenue and if it lowers their revenue, money coming in, that's the top, their bottom line, they can hurt their bottom line, their top line can continue to grow. The top line is the overall, the total revenue that's coming in, but the bottom line is at the bottom of the financial sheet after the taxes been taken out. Now, when you look at the bottom line, the bottom line is gonna get affected, that's gonna get hit the hardest. So countries, companies will be making more money, but not making more money because it's not about how much you make, it's about how much what? Smart, how much you keep. So now that corporations are saying, hey, well, if our bottom line has been affected, what did everybody like to do? They love to find ways to cut expenses. How can you cut expenses? One of the biggest expenses most corporations have is people. People, human capital is like one of the biggest labor and human capital are the biggest expense majority of companies have. So with that being said, they're gonna start to eyeball that. Well, how about we automate some of these jobs? What if we laid off people? What if we hired less people? So they're gonna look at the labor force, which can hurt everyday Americans. So hey, you know what? If we cut down the labor force, we can continue our growth. That could be one thing they'll do. The second thing is they could replace people with robots, automating and artificial intelligence. Also, you look at it, you see it in Burger King and McDonald's and fast food restaurants, you're seeing the robots coming out saying, hey, we'll flip those burgers and we'll never complain about our hourly wage. Right? We won't cost you money over the long run and we'll work all day and all night. So the thing about it is now you're looking at companies are getting into kiosks and robots to do more with less people. So yes, we almost like the concept of raising minimum wage. Hey corporations, pay your taxes, okay? They may start to target human capital and you can see robots starting to replace humans as labor becomes a soaring eye not a soaring eye, that's the wrong kind of concept there, but something that corporations start to put their eye on. Now, the next thing that people will do that Americans don't like, we love that dollar menu, we love the dollar dish, five dollar dad or whatever, five dollar foot long or whatever the case may be and that's meaning the corporations can raise their prices to accommodate for the higher tax prices. But what American wants taxes? I mean, I have taxes but higher prices, we don't want higher prices. So corporations, how would they take care of this? If they can't hide, be or move it around the taxes, they may look at raising their prices. They may look at cutting their workforce, cutting or hiring less people. So at the end of the day, then as investors, if companies are making less and less money or if their top line is not growing and their bottom line is not growing, if they're not making more and more money, that may hurt the potential stock price of the company. That means the company may not go up. That's why we care about corporate taxes, right? So my thing is, I think that America in general, when it comes down to money, is physically irresponsible. Meaning that if we raise the taxes, if somebody gave America right now $10 trillion, I don't think we would even use it to pay off taxes. I think we'll use it to go buy something else. Imagine if you had your 16 year old, I don't know, let's say if you got a daughter and she's 25 years old and she comes to you and she says, hey, I owe $20,000 and debt is killing me. Can you help me or whatever? You give her the money and she takes the money, you give her $10,000 to put on her debt. She takes the $10,000 and she goes and buys more stuff. What are you gonna do the next time around? Are you gonna, do you wanna give her more money and try to help her get out of debt? Probably not. And that's how America looks. That's why corporation businesses and entrepreneurs don't like it. Here's the biggest con to this. What is happening in economy right now, ladies and gentlemen? March, we started a pandemic. Companies are just starting to try to keep their head outside to come out of the pandemic. What does that mean for companies? Now you're gonna raise my taxes? It could kill, literally kill small businesses at an improper time like this. Some small businesses are just opening back up their door. They've just found out a way to live in a pandemic or survive the pandemic. And now soon as things are starting to brighten up as the vaccinations and we get to come back outside and things we kinda get adjusted to the new normal. Now you wanna hit me with a tax hike to build new roads? That could be a very bad thing for small businesses. And everybody knows small businesses is the cornerstone of an economy. So that could be very detrimental for companies that are looking to finally get their push back outside. So those things I wanna talk about could be detrimental for small businesses due to the time of coming out of the pandemic. Also, it could hurt the labor force and it could hurt prices. Secondly, why would a small company agree to raise their taxes to be on par with America? No, they benefit from profit sharing. We lose when companies profit share. Small companies benefit, that's why they lower their prices. So anyway, that's gonna conclude today's episode. I hope you guys and girls took something out of it. Let's do a quick recap. We talked about President Biden's infrastructure plan or his main in America plan or jobs plan. And we talked about how much it's gonna cost. And to pay for this, he wants to raise corporate taxes by 7% over the next 15 years and it will pay for it. That's the first thing he talked about. And in return, the Secretary of Treasury, Janet Yellen, Janet Yellen comes out and says, hey, we need the global taxes because they know if we raise taxes, corporations are just gonna run overseas. And then President Biden says, hey, we wanna give incentives to companies that stand America and employ Americans, things like that. Now you turn around and you look at Secretary Yellen, she says, hey, if we raise these taxes, people are just gonna run to other countries and to combat that, how about we get a global tax so we can stop this race to the bottom? Right now, this country's lowering their taxes, I'm lowering my taxes, everybody's getting lower and lower and lower and putting governments, which become as physical as possible and putting governments in a bad position because they're not making enough money through their taxes. So the government comes through and it says, hey, what if we all agree? It sounds great from an American, but it sounds horrible for a country like a Cayman Islands or Ireland or whoever the case, who has the lowest taxes that everybody runs to? So I don't know what incentive do they have to raise their taxes to compete with America then America's not gonna use them anymore or potentially not. Or they could run away businesses from their country. So it sounds good in theory for America, but it sounds crazy on a global scale in my opinion. Now, the other thing about it, the bad thing about this is this could hurt the labor force and it also could hurt prices. Companies may raise their prices and they may lower or lay off the employment their workforce. The other thing is timing. When you look at the timing of right now, we've just come out of a pandemic, countries are just starting to beef themselves back up and now you wanna spike taxes on small companies that could potentially water business. All right, so ladies and gentlemen, boys and girls, I hope you guys and girls took something from there. You guys and girls, don't forget to hit that like, subscribe, comment, and share button. Check us out on thingtechowai.com, check us out on iTunes, YouTube, all social media platforms. Hit that like, subscribe, comment, and share button. And also, don't you forget, check out your Western Learns Book Club available everywhere around the globe. Until the next video podcast, cartoon, or whatever else craze you see me do around the globe, peace, be safe, I'm out and thank you.