Democrats’ Vote-a-Rama Will Trap the Middle Class With Big New Taxes
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.
Hot on the heels of the infrastructure package, Democrats successfully rushed to pass the budget resolution framework, working through their vote-a-rama with all sorts of Republican amendments and other complaints that won’t amount to a hill of beans.
The final, final vote on the final, final package was 50 to 49 in favor of the Democrats. Senator Mike Rounds of South Dakota was out on family business, but even had he been there, Kamala Harris was standing by to break the tie.
In a whole list of depressing factoids accompanying this lunatic package, as our friend Charlie Hurt put it last night, is the speed and efficiency with which the Democrats are carrying their agenda forward.
They were helped by Republicans on infrastructure but they didn’t need any help on this humongous spend and tax and regulate and green and entitle and amnesty so-called transformational Democratic plan.It will be scored at more than $5 trillion plus a trillion for infrastructure, bringing it $6 trillion.
The public is increasingly against this. With the economy booming, jobs booming, stocks booming, inflation booming, no one in their right mind believes we need a $6 trillion spending package.
As polls show, people associate overspending with rising inflation, and inflation is a greater problem than unemployment. Voters correctly perceive that $3 trillion or so in higher taxes will fall on the middle class as tax hikes predominantly always do. Why?
Because that’s where the money is, and higher taxes equals lower earnings. More taxes on businesses will shrink profits. Which means less money to pay the workforce, less money to invest in new technologies to increase productivity and real wages, lower share prices for your 401ks and IRAs, and higher consumer prices to finance the tax hikes. Once again, corporations don’t pay taxes, people do. Whom is Mr. Biden kidding?
Incidentally the Bernie Sanders Budget Committee documents show a $17 trillion increase in publicly-held federal debt over the next 10 years as a result of these policies.
By the way, the Trump corporate tax cuts paid for themselves within 18 months, and his overall tax package of $1.5 trillion in tax relief was all but paid for on the eve of the pandemic. That’s according to the Congressional Budget Office. And here’s another bulletin: The Biden tax hikes are seven times the size of the Trump tax cuts. And here’s yet another bulletin: No country in the history of history has ever taxed its way into prosperity
Just to close the circle, this is a program of central planning, government control, with a leftist social vision (amnesty is actually in this bill), along with an attempt to significantly downgrade America’s free enterprise system that has made us for the past 250 years the strongest economy in the world.
Today, by the way, is the 40th anniversary of Ronald Reagan’s tax cuts that lead to a three decade long prosperity wave.
From Mr. Kudlow’s broadcast on Fox News.