Conservatives have warned for a long time that a Joe Biden administration would be eminently destructive to America’s economic recovery. Now, unfortunately, it seems as if our fears have finally been realized.
Not only has President Joe Biden threatened to eliminate former President Donald Trump’s signature Tax Cuts and Jobs Act of 2017 — which a National Association of Manufacturers (NAM) news release found significantly increased manufacturing jobs, wages, spending and output by the end of its first year in place — but Biden has also pledged to bump corporate taxes up to 28 percent.
In addition, Biden is committed to increasing marginal tax rates, removing the 20 percent pass-through deduction and much, much more. All of this would be a betrayal to the American people who have suffered so much in the past year — a position shared by leading political figures.
The Biden plan to raise taxes on businesses after a year of shutdowns will be the final blow to many businesses and jobs. When I’m governor I’ll lower taxes and fight for our workers against the radical left’s socialist agenda.
— Sarah Huckabee Sanders (@SarahHuckabee) March 31, 2021
The results of such actions, according to a new study by Rice University economists John Diamond and George Zodrow, would be nothing short of disastrous.
If Biden’s tax plan goes through, one million American jobs would be lost in the first two years alone, the study noted.
Furthermore, our gross domestic product would decrease by $117 billion dollars by 2023, $190 billion by 2026 and $119 billion by 2031. Investments in equipment and structure would also substantially decrease.
Needless to say, the reaction from industry leaders has been less than positive.
NAM President and CEO Jay Timmons said, “As we slowly emerge from the economic catastrophe caused by COVID-19, American businesses are at a pivotal point in our nation’s history. Manufacturers can, and should, lead the economic recovery in the wake of the pandemic,” according to the NAM news release.
“But this study tells us quantitatively what manufacturers from coast to coast will tell you qualitatively: increasing the tax burden on companies in America means fewer American jobs. One million jobs would be lost in the first two years, to be exact.”
“We should be building on that progress, not rolling it back,” Timmons continued. “But the conclusion of this study is inescapable — follow through with tax hikes that give other countries a clear advantage and we’ll see far fewer jobs created in America.”
Author and investment analyst Jared Dillian agreed.
In an Op-Ed for Bloomberg, he argued, “Biden’s plan will only collect about $3.2 trillion over 10 years, after accounting for dynamic scoring, which is a pittance relative to the current $3 trillion federal budget deficit. The unfortunate thing is that if the government was really interested in boosting revenue, it would have to raise taxes on the middle class, but that is a political third rail.”
“If Biden’s plan passes, our marginal income tax rates would become grotesque, with a hypothetical couple paying 24% in taxes on incomes up to $320,000, rising to 51% on $408,000 in income if that couple is self-employed. The U.S. has enjoyed strong rates of business formation, but that wouldn’t last very long if Biden becomes president and his tax plan becomes law.”
All in all, it’s abundantly clear that Joe Biden has no interest in being the moderate he claimed he was on the campaign trail. Instead, he seems intent on sacrificing the jobs of the Americans who voted him into office on the altar of radical spending plans.
This is not the America that was built to greatness through ingenuity and free enterprise. It is spending for the sake of spending, and it will be completely unsustainable in the long-term — on top of the so-called “stimulus” that has already been passed.
Nobody likes to get off the spending train, especially when it has only begun to speed away from the station, but it is a necessity if our country is to survive. American taxpayers deserve better governance, and they deserve to keep their jobs.
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