PIERS MORGAN: President Biden’s $ 2.3 trillion infrastructure plan is a reckless gamble for tax hikes
I once saw a man running down a tourist beach in Spain and throwing money away.
He literally sprinted across the sand, cackling insane as he threw huge piles of banknotes into the air and yelled at everyone, “TAKE MY CASH !!”
It seemed the most wonderfully generous imaginable and cheerful vacationers jumped from their sunbeds as if they had been electrocuted in a frantic race to grab the loot.
But there was a problem.
It was a very windy day and most of the money flew straight from his hands into the choppy ocean and disappeared with the strong tide, never to be seen again.
The comic scene reminded me of that famous Biblical quote from the Book of Job: “The Lord gave and the Lord took away.”
President Biden reminds me of that guy on the beach, he just loves giving money away.
Biden has only been president for three months, but he has already persuaded Congress to spend $ 1.9 trillion on a Covid stimulus package, and now he wants it to spend an additional $ 2.3 trillion on its plan to revamp the government. infrastructure.
He claimed it was a once in a generation spending plan and boasted, “ I am convinced that if we act now, people will look back in 50 years and say this is when America won the future. ‘
Biden has only been president for three months, but he has already persuaded Congress to spend $ 1.9 trillion on a Covid stimulus package, and now he wants it to spend another $ 2.3 trillion on its plan to revamp the government. infrastructure.
These moves would reverse the extensive and very popular tax cuts of its predecessor Donald Trump and they have fallen like a lead balloon with many of the same business leaders who had widely supported the Covid relief package.
Like the guy on the beach, I’m not sure Biden read the wind correctly.
It’s all very good to throw out trillions of federal dollars this way, but at some point, as even the most economically imbecile people know, it will have to be repaid.
And, as always, the debt will have to be settled by the American people.
The president insists that it will only be the rich who will have to pay more, and pledges to levy taxes only on those who earn more than $ 400,000 a year.
Indeed, when he announced his new infrastructure plan on Wednesday, he emphatically and unequivocally doubled down on that promise, saying, “No one earning less than $ 400,000 will see their federal taxes go up, period.”
That couldn’t be more clear, except that Biden’s own press secretary Jen Psaki has said this limit will apply to entire families, not individuals.
So if two people in the same household make $ 200,000 each, it is likely that they will both pay more in tax, which would make a mockery of the “no one making less than $ 400,000” guarantee.
Biden also plans to recoup a large portion of the spending by raising the U.S. corporate tax rate from 21% to 28% and by imposing a global minimum corporate tax rate of 21%.
These steps would reverse the extensive and highly popular tax cuts of his predecessor Donald Trump, and they have fallen like a lead balloon with many of the same business leaders who had widely supported the Covid relief package.
The president insists that it will only be the rich who will have to pay more, and pledges to levy taxes only on those who earn more than $ 400,000 a year. That couldn’t be more clear, except that Biden’s own press secretary Jen Psaki (pictured) has said this limit will apply to entire families, not individuals
The U.S. Chamber of Commerce overturned Biden’s plan as “ dangerously misleading, ” the National Association of Manufacturers outraged that it would “ turn the clock back to archaic tax policies that gave other countries an advantage over America, ” and the Business Roundtable warned that it would create “new barriers to job creation and economic growth.”
Biden’s plan is also based on a scam.
He wants America to think he’s the presidential version of Robin Hood and only go after the rich, bloated fat cats on Wall Street while taking care of the little boys.
But if he gets his way with these hefty corporate tax increases, you can be sure that corporate America will simply shift the extra burden on to the consumer – meaning that while most Americans will not see their individual taxes rise below this plan, they will all end up paying more for their goods.
Not that you’d realize this obvious sting in the story if you just read coverage of the plan in Biden-slathering liberal media like the New York Times.
“Biden plan emphasizes jobs, roads and growth,” was the NYT headline enthusiastically, with another P1 headline gushing equally uncritically: “$ 2 trillion for a one-time infrastructure repair.”
The newspaper coverage was so positive that its own White House Chief of Staff Ron Klain tweeted the front page of the NYT with cheering elation, “America: Let’s Win the Future!”
As Tucker Carlson put it on Fox News, “The Times approached the plan with Izvestia’s calculated enthusiasm and applauded yet another record-breaking potato crop from the Soviet Union.”
But if the NYT had bothered to take a more critical look at the plan, it might have uncovered some rather surprising facts.
For example, less than $ 750 billion of Biden’s $ 2.3 million “infrastructure plan” is based on a conventional concept of infrastructure.
Much of it focuses on ‘green’ projects such as electric cars and climate change, in addition to childcare, scientific research and care for the elderly and disabled.
In fact, only 5% is dedicated to repairing roads, bridges, highways, train tracks and streets.
Ironically, Biden is also under attack for not going far enough through the far-left progressive wing of his own party, led by Congressman Alexandria Ocasio-Cortez, who says the plan should be at least $ 10 trillion. No, AOC. That would make the country bankrupt
Republicans have been quick to take advantage of this unfair labeling and have expressed their intention to rigorously oppose the plan.
“It’s called infrastructure,” said Senate GOP leader Mitch McConnell, “but inside the Trojan it will be more borrowed money and massive tax increases for all productive parts of our economy.”
House Republican leader Kevin McCarthy snapped, “This is not an infrastructure law – this is the green new law with raising taxes. Very little infrastructure in it. ‘
And former President Trump fumed in his usual hyperbolic fashion, “Biden’s ridiculous multimillion-dollar tax hike is a strategy for total economic surrender.”
Ironically, Biden is also being attacked for not going far enough through the far-left progressive wing of his own party, led by Congressman Alexandria Ocasio-Cortez, who says the plan should be at least $ 10 trillion.
“I know this could be an eye-catching figure for some people,” she said, “but we need to understand that we are in a devastating economic moment. Millions of people in the United States are unemployed. We have a truly crippled healthcare system and a planetary crisis on our hands, and we are the richest nation in the history of the world. So we can do $ 10 trillion. ‘
No, AOC, you cannot.
That would make the country bankrupt.
Her ridiculous comments confirm my fear that big blobs of madness will be creeping into America’s tax debate.
The coronavirus pandemic prompted panicky governments around the world to behave with the same reckless attitude towards money that I saw with the money-guzzling beach man in Spain.
But thanks to the vaccines, we are getting out of the crisis, and America is coming out faster than most thanks to the very impressive rollout of vaccines.
Most experts expect there will be a massive and much-needed rebound in the US economy when life returns to relative normalcy later this year, with gangbusters growing as people start spending again.
When that happens, it will have a positive financial impact on every American.
So the last thing Americans need right now is for their president to commit to reckless, unaffordable spending plans that he can only afford with massive tax increases.
‘Simply put,’ said Mr Biden on Wednesday, ‘these are investments we need to make. We can afford to make them, or in other words, we can’t afford not to. ‘
Really, Mr. President?
If you’re not very careful, your plan could just slide the US post-pandemic economic recovery back into another financial crisis.
This was far from the moment you won America’s future – it could be the moment you lost it.