Biden’s inflated budget puts long-term health of economy at risk – Orange County Register
A president’s budget proposal is a political document, the first step in a months-long negotiation with Congress. While it’s no surprise that President Biden’s first budget includes new spending apparently intended to appeal to major voting blocs, the scale of his $ 6 trillion spending plan is both unprecedented and risky.
Biden’s budget is said to run into record deficits, the highest the United States has seen since World War II. The debt is so huge that even the huge tax hikes proposed by Biden wouldn’t start reducing it until the 2030s, by the White House’s own admission.
“We know from history,” the president said last week in Cleveland, “that these kinds of investments raise both the floor and the ceiling of an economy for everyone.” saving retirees pushes assets into higher tax brackets and sharply increases the cost of living for all. Inflation is actually a tax increase for all Americans.
So it should be of concern to everyone that the president has proposed massive spending increases on virtually everything. Its infrastructure plan includes many elements with bipartisan support, such as spending on roads, bridges, broadband, ports, airports, public transport, water infrastructure, and manufacturing research. But the president is also looking to fund new duty programs that will require taxpayers to cover ongoing and possibly unlimited annual costs.
Biden offered universal kindergarten, two years of free community college, funding for child care, paid family and medical leave, expanded health insurance tax credits, and another tax credit increase. refundable for children. His proposal calls on Congress to expand health coverage, reduce deductibles and lower the age of Medicare eligibility to 60. Bureaucracy also has its part. The president is calling for increases in the budgets of many agencies, including an additional $ 14 billion spread among government offices fighting climate change.
The White House acknowledges the spending is on the nation’s credit card, but insists that after a decade or so, the president’s proposed tax increases will begin to reduce deficits. Biden is looking to raise the corporate tax rate from 21% to 28%. and the highest capital gain rate of 23.8% to 43.4% for households with income above $ 1 million. His plan also provides for the taxation of capital gains on inherited assets on death, allowing for an exclusion of just $ 1 million. And he wants to hire tens of thousands of new IRS agents to enforce tax collection more aggressively.
In what amounts to an admission of the risk of these tax increases, the Biden administration seeks to persuade other countries to adopt a “global minimum tax” on corporations in order to prevent American companies from fleeing. Even an overseas tax haven could mean Americans will end up with fewer jobs, high inflation, and growing national debt as the cost of new fee programs continues to rise.
Although Biden pledged not to raise taxes for anyone earning less than $ 400,000 a year, he did not pledge to support the renewal of the lower tax rates put in place by the tax cuts and jobs. Congress has set these rates to expire in 2025.
Biden’s oversized budget paves the way for a massive tax hike for the middle class. All budget proposals are political documents, but this one is particularly cynical.