Biden’s budget would hurt economy in 3 huge ways, analysis finds

Does this sound like 'Building Back Better' to you?

Earlier this month, President Biden released his budget proposal. It included $4.8 trillion in tax hikes and spending levels that would drive the U.S. into unprecedented levels of debt. Biden claimed this is all needed to “make our economy work for the middle class again.” But now we know that the president’s budget would actually hurt the economy in three major ways.

A new analysis from the nonpartisan Tax Foundation runs the number and comes up with some damning results. It finds that rather than boost the economy to new heights, Biden’s proposal would reduce the size of the economy by 1.3%. That might sound small, but it equates to hundreds of billions of dollars in lost jobs and wealth created.

So, too, it would reduce wages by 1%, hitting workers who are already struggling with inflation with a gut punch, not helping them as Biden claims. What’s more, it would destroy approximately 335,000 jobs altogether, leaving many Americans out of work.

And, if anything, these figures are actually underestimates, the Tax Foundation says, because they don’t account for the damage that will be caused by Biden’s unconstitutional “billionaire tax” on unrealized capital gains. So the reality would be even worse than these already-grim estimates suggest.

The biggest cause of the adverse economic results is the Biden administration’s plan to raise the corporate tax rate to 28%. The corporate tax reduces investment, kills jobs, and is ultimately passed along to workers via lower wages.

The White House claims that their plan will reduce the deficit compared to the baseline and only hurts the wealthy, but the Tax Foundation questions both of those claims.

“The budget relies on many untested revenue sources, meaning its chances of substantial deficit reduction are probably overstated,” said senior policy analyst Garrett Watson. “The White House can say that these policies are only targeted at the well-off, but our modeling shows the opposite—these tax hikes will be widespread.”

Does that all sound like ‘Building Back Better’ to you?

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Brad Polumbo
Brad Polumbo
Brad Polumbo is a libertarian-conservative journalist and co-founder of Based Politics. His work has been cited by top lawmakers such as Senator Rand Paul, Senator Ted Cruz, Senator Pat Toomey, Congresswoman Nancy Mace, Congressman Thomas Massie, and former UN Ambassador Nikki Haley, as well as by prominent media personalities such as Jordan Peterson, Sean Hannity, Dave Rubin, Ben Shapiro, and Mark Levin. Brad has also testified before the US Senate, appeared on Fox News and Fox Business, and written for publications such as USA Today, National Review, Newsweek, and the Daily Beast. He hosts the Breaking Boundaries podcast and has a bachelor’s degree in economics from the University of Massachusetts Amherst.