Joe Biden is planning to make the inflation in this country much worse, by having the federal government spend trillions of dollars on Democrat priorities. How much will it cost? Who will benefit from all this spending? And who will get the bill ? Let’s start with a new report about the cost of the plan. Does it really cost “zero” like Joe Biden says?
The Washington Times reports:
The mission of the Penn Wharton Budget Model (PWBM) “is to provide non-partisan, research-based analysis to inform the country’s budget.”
To that end, PWBM has proven successful. In recent years, Sen. Chuck Schumer (D-NY), Rep. Pramila Jayapal (D-WA), and Sen. Mark Warner (D-VA), among many others, have sung its praises.
[…]“Under an alternative, illustrative scenario in which all spending provisions in the White House framework are permanent except the clean energy tax credits, new spending would instead increase by $4.26 trillion, and new revenue would still increase by $1.56 trillion over the 10-year budget window. The federal debt would be 25.2% higher and GDP 2.8% lower in 2050, relative to current law.”
The Biden administration offers a lower figure by claiming that their spending on social programs is “temporary”, but historically speaking, there is nothing as permanent as a “temporary” vote-buying program. Voters get addicted to benefits, and it all gets added to the debt.
Another report from Committee for a Responsible Federal Budget concurs with the $4 trillion plus figure:
The Build Back Better Act relies on a number of arbitrary sunsets and expirations to lower the official cost of the bill. These include extending the American Rescue Plan’s Child Tax Credit (CTC) increase and Earned Income Tax Credit (EITC) expansion for a year, setting universal pre-K and child care subsidies to expire after six years, making the Affordable Care Act (ACA) expansions available through 2025, delaying the requirement that businesses amortize research and experimentation (R&E) costs until 2026, and setting several other provisions – from targeted tax credits to school lunch programs – to expire prematurely.
Their figure for the total cost of the bill, with these stipulations in place, is $4.9 trillion.
But the rich are going to pay for it all right? That’s what we’re being told. But the reality is somewhat different. Actually, the bill cuts taxes for the wealthy, living in many blue states, by raising the cap on State and Local Tax deductions.
This article from the far-left Washington Post explains:
The measurewould allow households to increase their deduction from state and local taxes from $10,000 to $80,000 through 2026, and then impose a new deduction cap through 2031. It’s the second-most expensive item in the legislation over the next five years… according to an analysis by the Committee for a Responsible Federal Budget.
The tax cut would partially reverse a tax hike from President Donald Trump’s signature 2017 tax bill that was particularly burdensome to high-income, high-tax states.
Over the next five years, raising the SALT cap would provide a tax cut only to those who itemize their taxes and pay more than $10,000 in state and local taxes — a group overwhelmingly made up of the wealthy. A recent analysis from the Tax Policy Center says the tax cut will benefit primarily the top 10 percent of income earners, with almost nothing flowing to middle- and lower-income families.”
Raising the SALT cap would more than offset other tax increases for the wealthy in 2022, according to a report from the Tax Foundation.
This isn’t surprising. Remember, Joe Biden is the father of Hunter Biden. And we need to set aside 10% for The Big Guy, right?
So, we’re adding trillions to the debt. Who is going to get the bill for all this spending? The spending is intended to buy the votes of Americans in the 2022 and 2024 elections – the next 5 years. But the paying back of the money will be done by your children. Not by the children of the wealthy, though. By the children of the middle class. Your children. There are too few wealthy people in this country to pay for trillions of dollars of spending. You’re going to pay for it. You and your children. You’re paying right now, and you’re going to pay more.