Biden Set to Create Disastrous Loop with New $1.8 Trillion Spending Plan
Three and a half months into his administration, Joe Biden — the man who ran on promises of a moderate presidency — has proposed $6 trillion in spending.
The president’s latest spending package, dubbed the “American Families Plan,” tips the scales at $1.8 trillion dollars. It comes on the heels of two other proposals from the Biden administration that each cost well over $1 trillion.
The American Rescue Plan, which was sold as a coronavirus relief bill, was passed in March and cost the country $1.9 trillion.
After that, Biden proposed the American Jobs Plan, which costs a whopping $2.3 trillion. Masquerading as an infrastructure bill, the plan actually pushes Democratic priorities like “green” energy, according to The New York Times.
To fund the bill, Biden has proposed raising the corporate tax rate from 21 percent to 28 percent and making multinational corporations pay “significantly more” in taxes, The Times reported.
As if that’s not enough, the American Families Plan is essentially another attack on the wealthiest Americans.
According to NPR, Biden’s plan to fund the bill includes hiking up the capital gains tax rate among people who make more than $1 million a year.
“This will only apply to three-tenths of a percent of taxpayers, which is not the top 1 percent. It’s not even the top half of 1 percent,” said Brian Deese, the head of the National Economic Council. “That’s about 500,000 households.”
You see, it’s not a problem if we force wealthy Americans to bankroll Democratic priorities as long as only 500,000 households are affected.
While Deese did not comment on exactly how much the administration wants to raise the capital gains tax, NPR said some reports had it being set as high as 39.6 percent. It currently sits at 20 percent, meaning the Biden administration could practically double the current rate.
The plan itself is deeply flawed.
It claims to be for families, yet it pours money into federally subsidized child care and “free universal preschool,” according to The Times, ironically encouraging parents to spend less time with their children.
The American Families Plan takes for granted the leftist argument that the traditional family structure is unnecessary and even unjust. It’s another attempt to get mothers out of the home and into the workforce.
It should go without saying that Biden’s spending spree to accomplish the progressive wishlist could have disastrous effects.
For one thing, inflation is already threatening to become an issue. According to Axios, Federal Reserve chair Jerome Powell’s promise that inflation will not rise has not reassured major corporations.
“Major brands have rolled out price hikes consistently over the course of the year, along with notable increases in the price of cars, construction, furniture and the cost of gas that are starting to show signs of staying power,” the outlet reported.
While coronavirus restrictions certainly played a role in disrupting supply chains, the fact that our government is looking to spend an unprecedented amount of money probably has not helped matters.
In addition, fewer Americans are willing to accept blue-collar positions.
“Economists also are beginning to see upward pressure on wages, as more companies are finding workers unwilling to accept ultra-low wages and the demand for white-collar positions intensifies,” Axios reported.
As it turns out, paying people to sit on their couch does not really incentivize them to get a job.
Proposals to make the top earners in America bankroll Biden’s plans could backfire as well.
The thing about millionaires is that, as a general rule, they are pretty intelligent when it comes to finances. They are smart enough to find ways to avoid paying massive amounts of taxes and pass off the cost of big government policies to the rest of us.
Of course, Democrats will want to deal with the fallout of all this spending with — what else? — more spending. We will find ourselves in a never-ending cycle of throwing money at problems caused by throwing money around.
America cannot just fork over $6 trillion without facing the consequences. The more the Biden administration taxes and spends, the more it will hurt all Americans, not just the rich.
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