In the Battle Between the Left and the Far Left, They’re Both Wrong

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So, day two of President Biden’s plea to his Democratic Party to pass key climate legislation in the infrastructure bill and the reconciliation bill to have his back at the United Nations climate summit at Glasgow, Scotland. The reconciliation bill has $550 billion for climate reforms, so-called, and the infrastructure bill I think is another couple hundred billion.

Senator Manchin got rid of the clean electricity plan, which is a blessing, but still, the whole idea that we’re going to shrink our energy power base by abolishing 80% of that fossil fuel base of oil, natural gas, and coal is ludicrous. And totally unnecessary. If we ever did it — which we won’t, but if we ever did — it would destroy the economy.

Make no mistake about that. Take a look at Britain when the North Sea winds stopped blowing. And Germany, which tried renewables and is now dependent on coal.

Or France, which backed away from its sensible nuclear power policy and instead went to gasoline taxes — to curb driving. All that led to was plunging polls for President Macron and hundreds of thousands of marchers on the Champs-Elysees every Sunday. Mr. Macron relented.

Small movements in global warming will not wreck our economy. Nor will wildfires, hurricanes, snowstorms, or other temporary, brief natural disasters. Here’s the point: The progressive left walked out on Joe Biden. As a distant observer, it looks to me like a big argument between the left and the far left.

I don’t really have a dog in this fight between the left and the far left. They are both wrong. Yes, I’ve been rooting for Senator Manchin and Senator Kyrsten Sinema to cut dangerous spending and to block tax-hiking proposals. Every poll says voters and taxpayers believe more spending leads to higher inflation, and higher taxes lead to lost jobs.

Only the former chairwoman of the Federal Reserve, Janet Yellen, seems to think more spending generates lower inflation and more jobs. We are all certainly glad that when she was chief of the Fed she never opined on fiscal policy. Now she’s out of the closet, and it’s not good.

This new spending number that is circulating at $1.75 trillion is phony boloney. It’s larded with gimmicks and not credible. The Wall Street Journal’s editorial today called it a “jerry-rigged budget framework.” They are right.

Basically, the Democrats are scoring permanent programs as one-year temporaries. Like extending the child-care tax credit for a one-year cost of $110 billion, when in fact it’s a 10-year cost of well over $1 trillion. Ditto for expanding Obamacare subsidies. And expanded Medicare and Medicaid services.

The Journal puts the cost at $4 trillion. If the Democrats were to disclose their true intentions of a permanent and reckless expansion of the government welfare state, it would score far higher.

Meanwhile there are these late entry — or reentry — tax hike proposals, such as a corporate minimum tax for domestic and foreign company income, and higher marginal tax rates, such as a 5% surtax on income above $10 million and 8% above $25 million.

This, by the way, includes basically the backbone of American business, S-corps, LLCs, and wholly owned proprietorships that are the backbone of American business. This would be a huge discouragement for investment, capital formation, job creation, and higher wages.

In blue states like New York and California, the top marginal personal tax rate would come to around 60%, higher than Europe. I’m assuming the goofy billionaires wealth tax on unrealized capital gains has finally been laughed off the table. but who knows?

So I’m taking the Napoleonic position. I know he could be a megalomaniacal totalitarian, but even those people have occasional wisdom. Never, he’d say, interfere with an enemy while he’s in the process of destroying himself.

So Joe Biden is going to Glasgow empty-handed. No tears from this source. You know what I’m going to say. Save America. Kill the bill.


From Mr. Kudlow’s broadcast on Fox News.

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