Conservative concerns over Biden’s economic policy are not just overdrawn, partisan dribble. Leading economists from across the country have justified these concerns with solid data that should prove concerning to every American who wishes for a bright future and an ability to earn a living. In other words, the promise that was delivered under Former President Trump.
But that high period is over now and Americans are left to contend with the harrowing fiscal policies of the Biden administration. Policies that are sure to crash the economy and cause suffering on a mass scale. And there’s proof…
If enacted, Joe Biden’s first budget proposal would cut U.S. economic output by 1.5% over the next 30 years, according to leading economists.
Penn State Wharton Business School, a top rated institution, and Trump’s alma mater, published a report which evaluates public policy from a fiscal point of view. The report suggests that the current president’s budget would garner $6.1 in new federal spending over the next 10 years, while raising less than $4 trillion in revenue.
As a result, the massive deficit spending would drastically cut into the nation’s gross GDP — the amount of final goods and services produced by the United States within a given year — by 1.5% over the next three decades.
Here’s how Biden plans to raise the funds to pay for his Radical Left agenda:
- Increase the corporate tax rate to 28% — $892 billion
- Revise Global Intangible Low-Taxed Income (GILTI), disallow deductions attributable to exempt income, and limit inversions — $728 billion
- Tax compliance and registration — $480 billion
- Capital gains provisions, tax carried interest as ordinary income — $376 billion
- Repeal the Foreign Derived Intangible Income (FDII) deduction — $260 billion
Here’s where Biden plans to spend over $6 trillion:
Research and development — $1.133 trillion
- Education — $1.109 trillion
- Infrastructure — $1.031 trillion
- Individual tax credits — $853 billion
- Child care — $550 billion
- Long-term care — $400 billion
Both the American Jobs Plan and American Families Plan, both massive spending initiatives signed by Biden, are included in his budget proposal with the addition of another $393 billion not originally included in those bills.
The Wharton economists note that the budget’s focus on transfers — payments that the federal government makes to individual citizens without receiving any good or service in return — would diminish economic output:
The budget also disincentives investment spending, thereby limiting other key growth metrics:
It is unclear which parts of Biden’s budget will be successfully passed by Congressional Democrats, who are currently attempting to enact a $3.5 trillion omnibus through budget reconciliation.
Although the maneuver requires lock-step loyalty from the fifty Senate Democrats, Sen. Kyrsten Sinema (D-AZ) revealed that she would not support the package due to its size.
Author: Nolan Sheridan