Mazzei Minute: 04/01/22
Joe Biden’s last finance plan, mistakenly titled “Build Back Better”, was fortunately killed after months of wrangling. However, Biden’s new budget proposal has many of the same destructive features as the previous one.
It’s no secret that the U.S. budget is already busted. It’s part of the reason for our current inflation woes— too much spending from too much debt chasing not enough supply of goods and services. Yet, Biden wants to add more fuel to a fire that is already out of control.
He’s proposing $5.8 trillion of spending, which is a whopping 31% more than the pre-Covid 2019 budget.
We certainly don’t have a revenue problem. The flood of taxpayer dollars is up 26% so far for 2022 after an increase of 18% for 2019. Projected total revenue for 2022 is $4.5 trillion, but we can’t find a way to live within our means!
To make up the $1.3 trillion difference in revenue versus spending, Biden wants to borrow more money and raise taxes on job creators. He shockingly wants to charge employers taxes on the growth of their investments, even if the investments haven’t been sold. This is a major job killer that even European socialist countries don’t exact.
Our economy is confronting some disconcerting dangers. Higher interest rates and higher gasoline prices will dampen economic growth that is already hindered by increasing inflation. A huge tax hike would probably be the nail in the coffin leading to a recession. As economist Larry Kudlow likes to say, “Save America. Kill the bill.”