If it isn’t clear to you by now, it will become obvious: You can expect dire consequences from the Biden Administration’s budgeting approach.
For a starting point, it’s increasingly clear President Biden doesn’t care about higher federal debt.
The U.S. Debt Clock shows the national debt is spiraling out of control, and is likely to soar much higher than it is now:
Mr. Biden claims his new spending along with raising corporate and the top marginal tax rate on individuals to 39.6 percent will create jobs and strengthen the economy.
The opposite is true (see Biden’s budget is ‘unreasonable irresponsible and stuffed with liberal wish list items’).
His dysfunctional approach will cause the national debt to reach nearly $45 trillion by 2031. That massive debt will amount to $330,000 per household and create dreadful days of reckoning – a terrible liability to inflict on current and future taxpayers.
At nearly 110 percent of the gross domestic product, such high debt will also surpass the highest level in American history as a percentage of the economy .
It can only lead to a weak economy with high taxes and more government control over Americans’ lives for decades to come.
Political intrigue
Furthermore, you only have to look at Mr. Biden’s dubious approach by releasing his budget on the Friday before the long 2021 Memorial Day holiday weekend.
He used an old political tactic for issuing bad news – releasing his budget proposal on that Friday afternoon.
That’s the unofficial start of summer when bottled-up Americans were unlikely to notice the irresponsible and unreasonable budget – they were too busy planning fun and travel as a respite from the long deadly COVID-19 pandemic.
The budget revealed Mr. Biden wants to let the highly successful Tax Cuts and Jobs Act expire. The law reduced the corporate tax rate from 35 percent to 21 percent.
Broken campaign promise
President Biden also plans $3.6 trillion in new taxes. This is a violation of his campaign promise. He vowed to protect America’s middle-income families from tax increases.
All of this can only harm the working class and destroy the economic recovery that started with the innovative Trump Administration policies that alleviated tax burdens and government regulations.
You might recall the economy grew as Americans experienced significant increases in jobs, wages and investments.
Mr. Biden’s proposed 28 percent corporate tax rate would increase inflation. This, of course, will hurt the working class as well as America’s competitiveness and impose the world’s highest taxes on companies.
They would be passed onto workers resulting in repressed wages and benefits and will necessitate them to pay higher taxes.
Depletion of Medicare and Social Security
Even worse, the Medicare trust fund will be drained by 2026, and Social Security will be emptied by 2032.
This will surely guarantee Medicare benefits will be slashed and will be a catalyst for higher taxes – devastating young and old, alike.
In essence, the American dream will become an impossible dream.
Prosperity launched in the Trump years will come to a halt. Individual liberties will come to an end as Americans become slaves to government spending.
Endless, reckless spending must be stopped.
From the Coach’s Corner, see more public policy articles here.
“Behind the facade of elected government are a bunch of corporate controlled gangsters running the country.”
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