Brace yourselves, because President Joe Biden is about to slam the American economy to the ground in order to pay for his next project.
According to Business Insider, the president is expected to announce a staggering $4 trillion infrastructure bill (it was only $3 trillion last week) and if you’re wondering how on Earth something like that could be paid for, Biden has that covered, too — with a proposed $3.5 trillion tax hike.
The infrastructure bill, which has already received praise from Democratic leadership in both chambers of Congress, will likely be split into two packages. The first package will cover the hard infrastructure changes, such as rebuilding roads, bridges, and other transportation-related projects. It will also reportedly fund Biden’s “clean energy” initiatives,
The second bill will tackle improvements to the “care community,” such as setting aside funding for free community college, universal pre-K and other Democrat wish list items that have been discussed and proposed for years.
The Washington Post confirmed the pricetags of both the bill itself and the tax hike that will be needed to fund such a monumental proposal. The tax hikes were put in place by the administration to help offset the potential spike in interest rates and other detrimental effects of spending $4 trillion for the infrastructure bill.
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The Post reported that the Biden administration will likely need to get some Republicans on board in order to pass such an insane tax hike, reporting that it will be the “largest tax hike in generations.”
The administration, and members of Congress, could face tall obstacles if moderate senators like Sen. Joe Manchin of West Virginia sticks to his guns after vowing not to attempt to bypass the filibuster rule in order to pass the bills and the tax hikes needed to pay for them.
As far as who will be targeted, exactly, in the tax hikes is still up for debate. Biden has already flip-flopped on promises on what income brackets could be affected. Undoubtedly, businesses and high-earners who own businesses will feel the brunt of the hike, which only means that they’ll pass that hurt onto the consumer as they’ll have no other choice.
For Americans making over $400,000 per year, they could soon be hit with a staggering 39 percent tax rate. Biden has also floated increases on capital-gains tax and increases in corporate taxes.
Republicans are already mounting defenses and forming strategies to prevent such a massive tax hike, and hopefully they won’t back down. The last thing the American economy needs, after a year of suffering through a global pandemic, is a punch in the jaw with higher taxes.
It doesn’t take an economist to understand that it’ll result in higher costs to consumers, which means consumers will spend less, which sparks an entire chain of unfortunate circumstances that might only dig the American economy into a deeper hole.
If there was ever a time for Republicans in Congress to step up to the plate, it’s right now.
ARTICLE SOURCE: thefederalistpapers.org