About the only time President Joe Biden didn’t dissemble about his economic plan last Thursday was when he said, “I believe we’re at an inflection point in this country … where the decisions we’re about to make can change … the trajectory of our nation for years and possibly decades to come.”
His Democratic plan would permanently insert big government between individuals and benefits they now negotiate and earn by working.
Doling out more federal benefits for “free” sounds enticing—12 weeks of paid family leave; increased subsidies for dependent care; childcare; more monthly child tax credit payments; more Medicare, Medicaid and Obamacare. However, complete government dependency with no work requirements is too expensive because it sabotages the ambitious, choice-driven, flexible, innovative economic engine responsible for hundreds of years of American growth and freedom.
Playing the class warfare card, Biden claims, “Big corporations and the super wealthy have to start paying their fair share of taxes.” He claims the top 1% evade $160 billion in taxes each year and that they have to start to pay their “fair share just like middle-class folks do.”
That’s flim-flam that leaves out how the U.S. tax system is supported by American businesses that pay or remit 93% of the nation’s taxes. Biden ignores IRS data that shows the top 1% of taxpayers earned 21% of the income paid 40% of the income tax. The bottom 50% of taxpayers earned 11.6% of the income but paid only 2.9% of the income tax.
Former National Economic Council director, Larry Kudlow, points out Biden’s “fair share” misrepresentation ignores how 6 in 10 households receive more indirect government benefits than they pay in federal taxes. Over 53 million low- and middle-income folks pay no income taxes because of refundable tax credits. CBO data shows the lowest quintile of the income groups actually had a negative 10.9% income tax.
Biden’s highest corporate tax among all developed countries (except Colombia and Portugal) and greater government control of the distribution of wealth would further drag our economy down. We depend on economic growth to raise the living standards of individual Americans. Kudlow explained 70% of the economic consequences of a corporate tax hike fall on the blue-collar middle class— the backbone of the economy and workforce.
Record profits over recent years and record corporate tax payments on those profits came after the tax cuts of 2017. Those profits put to work grew the economy more. Businesses that aren’t making money can’t expand and may even have to lay off workers. Higher taxes bring wage stagnation slowing the economy down, taking the air out of the pandemic recovery.
What Biden didn’t say is important.
He proposed big government socialism not to benefit ordinary citizens but to assure centralized government control of the country for the foreseeable future.
He wants Americans to forfeit their independence, responsibility, and individuality.