The Bill Will Come Due on Biden’s Trillions
You know we have crossed a fiscal Rubicon when a presidential administration does not attempt to justify its spending, instead simply claiming that because of the COVID-19 pandemic, Americans must now welcome with joy and gratitude any spending bill, no matter how big, frivolous, or cronyist.
Based on that belief, President Joe Biden first backed a $1.9 trillion coronavirus relief bill that could not be justified by any broadly accepted economic theory. He then announced a $2.3 trillion “infrastructure” package that he described as a “once-in-a-generation investment in America unlike anything we’ve done since we built the interstate highway system and the space race decades ago.”
A closer look reveals that the plan is instead a jackpot for public unions and big business. Coming after two decades of spending indulgence under the last three presidents, culminating in an explosion of outlays during Washington’s COVID-fighting efforts, Biden’s spending extravaganza is in effect the final stage of an effort to centralize power in the federal government, which will fund ever more private, state, and local government -functions.
Gesturing toward fiscal responsibility, Biden plans to pay for most of his latest plan with a $2 trillion increase in corporate taxes, arguably the largest hike since World War II. The combined tax hikes, according to the Tax Foundation, likely will reduce private infrastructure investment by $1 trillion. A corporate tax
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