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.
I ran for president with a plan to make our economy work for the middle class again.
Today, I’m laying out the next part of that economic plan – my budget.
You can find it here: https://t.co/x3e9MdS9JV
— President Biden (@POTUS) March 9, 2023
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.
— Tax Foundation (@TaxFoundation) March 23, 2023
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?