The Mountaineer shocks the nation, and all Sooners and Cowboys should be livid! U.S. Senator Joe Manchin, a Democrat from West Virginia, cut a backroom deal with Joe Biden and Senator Chuck Schumer to raise taxes amid historic inflation and a slowing economy.
D.C. Democrat leaders keep proving they don’t understand economics. Nancy Pelosi and Schumer have concocted a scheme to use a special process called reconciliation to raise $1 trillion in new tax revenue with the intent to spend roughly $500 billion on their climate agenda. Such a program would increase already high inflation and destroy jobs at a perilous time for our economy.
For months, Senator Manchin resisted the pressure to support the plan by remembering to put the best interest of his constituents ahead of the wishes of Senate leaders, powerful interest groups, and well-connected donors. Sadly, for the people of West Virginia struggling with inflation and a recession, he caved.
One reason to hope that the current economic slowdown will only result in a mild recession is that the Trump tax cut for corporate income taxes remains in place. Companies are still incentivized to push through the pandemic-related and geo-political supply problems to meet the spending demand of Americans. But higher taxes on businesses will only exacerbate the supply of services and goods that are currently out of balance with spending. The recession could get worse.
The window for the reconciliation process closes on September 30. Maybe a brave Democrat will show some spine and shut down the destructive higher taxes and spending. Fortunately, the swamp of D.C. Democrats is about to be drained by the mid-term elections in November. If Joe Biden thinks raising people’s taxes in the middle of a recession will help Democrats in November, he’s about to feel the wrath of the American People.