The dream of every socialist is for a people to just lay back and let it happen. Germany did that in 1933 for a socialist and it took them twelve years and a losing world war to come out from under.
But our Democrats, the actual Socialist Party of America, played a bait and switch game at the election and now want to bring in socialism through their control of Congress and the White House. David McIntosh, president of the conservative Club for Growth, shows how the current White House budget proposal is an opening move in this plan.
The tax hikes in the $3.5+ trillion dollar Budget Reconciliation are a complete surrender of the American economy.
Immediately following Biden’s unconditional surrender to the Taliban, does this white flag really surprise anyone?
— Lauren Boebert (@laurenboebert) September 27, 2021
McIntosh: This is not simply the typical liberal Democrat budget on steroids. The numbers in the Biden reconciliation bill are massive, but they don’t tell the whole story.
As the liberal paper-of-record put it, Biden’s plan represents ”a cradle-to-grave reweaving of a social safety net” that would “fundamentally change the relationship between the state and its citizens.” Indeed.
As recently noted in the Wall Street Journal, the bill would enshrine “a trillion-dollar entitlement for the middle class, untied to work.” This would be one large step closer to a European-style nanny state and the attendant economic malaise that comes from discouraging work, and penalizing saving, investment and entrepreneurship. A look at the numbers is instructive.
The U.S. economy could easily see a loss of $3 trillion in economic output over 10 years along with a drop of $1.6 trillion in worker compensation over the next decade (roughly $10,000, on average, in worker compensation), and a lifetime drop in living standards of 4% for young workers. In addition, the United States will have the highest corporate tax rate and highest capital gains tax rate in the developed world.
Independent analysts note how the Biden plan would greatly increase the burden of federal spending over the next decade – diverting nearly $5.5 trillion from the private sector to the government. As noted, all of this new spending would be financed with higher tax rates on work, savings and investments.
Based on academic research, including new findings from the nonpartisan Congressional Budget Office, Biden’s tax-and-spend agenda contained in his reconciliation bill will accelerate America’s fiscal decline and substantially undermine economic performance. The Biden fiscal agenda also will reduce the capital stock and lower rates of return on investments, thus causing a $1 trillion-plus loss in financial wealth and hurting the retirement savings of tens of millions of American workers…
The plan raises $534 billion by increasing the global minimum tax on American companies competing in world markets and would generate an additional $322 billion by increasing the double taxation of investment, subjecting American investors to the developed world’s highest capital gains tax rate.
And the president wants to put plenty of muscle behind the government’s ability to audit, monitor and collect those taxes. The Biden plan calls for more than $80 billion to expand the size and power of the Internal Revenue Service in hopes of collecting an extra $700 billion in taxes.
While little more than a budget gimmick to magically put an extra $700 billion on the revenue side, the bill provides for an unprecedentedly intrusive regime that would allow the IRS to gain automatic access to virtually all bank account transactions. Big Brother meets Skynet.
The reconciliation bill – every trillion dollar of it – is a recipe for economic disaster and unbridled federal spending. Democratic cooks pass it at their political peril.