Democrat Joe Manchin calls the Democrats’ $3.5 trillion spending bill “fiscal insanity”. Democrats would add $5.5 trillion over 10 years, not their claimed $3.5 trillion, according to the Committee for a Responsible Federal Budget.
Democrats are using gimmicks like phasing items in slowly or setting them to expire after just a few years to lower the cost projections. For example, Democrats have only funded their checks for parents' program through 2025, and the child care subsidies through 2027. Once a government program is in place it is never cut. The largest parts of the increased health spending don’t start until 2028 to hide the true cost.
Biden’s claim he will pay for it with tax hikes on the rich is more dishonesty. Raising corporate taxes by $540 billion will lead to lower wages to employees and in higher prices for consumers.
A new congressional report shows the “infrastructure” bill would increase taxes on millions of taxpayers making less than $400,000. It would raise taxes by $2.1 trillion on individuals, small businesses, companies, family farms, and other estates.
Analysis by the nonpartisan Joint Committee on Taxation shows that 60% of taxpayers earning between $75,000 and $100,000, and 35% of taxpayers earning between $100,000 and $200,000 would face a tax increase. By 2027, the average tax rate for every income level above $40,000 would be higher than today.
This fiscal insanity will result in higher taxes, higher prices for everything we buy, lower wages, and lower retirement savings.