Here we are again, bringing you a “new” Biden spending plan. It seems like we’re doing that every two weeks or so. In fact, I’m certain there have been at least six or seven such plans from Democrat leaders in Congress, along with those that “supposedly” are inked at the White House. As usual, this new one is a doozy. Let’s take a look at its details and how much it will cost Americans: Oh, not you and me. It won’t cost us anything because there’s no way we Baby Boomers could pay for this and all the other ones, even if we paid EVERY dime of our personal incomes to the federal government! But that’s a story for another day.
The American Families Plan calls for a $200 billion program offering universal pre-kindergarten for all three and four-year-olds; $109 billion for tuition-free community college for any American who wants it; $85 billion to increase Pell Grants to benefit low-income and minority students; and more than $4 billion in funding for larger scholarships, certification and support programs for teachers.
The plan builds upon provisions of the American Rescue Plan by extending the Affordable Care Act premiums tax credits indefinitely (sounds much like Government operated Healthcare to me) and makes the earned income tax credit expansion for childless workers permanent. If passed and signed into law, it would permanently make the child tax credit fully available to the lowest-income families while extending other aspects of the credit expansion, such as the increase in the credit amount, through 2025.
The proposal also calls for the creation of a national paid family and medical leave program. The $225 billion earmarked for this specific giveaway would provide workers up to $4,000 a month if they require leave to care for a new child, care for a seriously ill loved one, deal with an illness, or another serious reason.
Other measures Biden called on Congress to pass include $45 billion for meal programs for children and low-income families, unemployment insurance reform, $225 billion for child care that includes a $15 minimum wage for early childhood staff, and expanded child care center accessibility. Officials said the plan would be paid for through tax reforms targeted at wealthy Americans, such as an increased capital gains tax rate, a higher top income tax rate, and increased IRS auditing enforcement on high-income individuals and businesses.
“We view the American Families Plan as a core element of President Biden’s strategy to build back better and generate a strong and inclusive economy for the future,” a senior administration official said.
The plan, which faces an uncertain future in Congress, does not go as far as some Democrats hoped. Some have pressed for a permanent expansion of the child tax credit, and it’s not clear that lawmakers will be satisfied by the proposal to make part of the expansion permanent while extending other parts through 2025. Key Democrats signaled that the House bill would include such a provision despite Biden not putting it in his initial proposal.
Biden has also faced pressure from members of his party, including House Speaker Nancy Pelosi (D-CA), to include health-related provisions expanding health coverage and lowering drug prices. The ideas had initially been expected to be part of the plan, but Biden did not include them in the final version. Asked why such provisions were not included, a senior administration official said that the permanent ObamaCare premium tax credit represents a “critical investment” and insisted that Biden remains “fully committed to negotiations to reduce the cost of prescription drugs.
The White House views the plan as a companion to Biden’s $2.3 trillion infrastructure and climate plan he announced last month, and officials said that the investments would be made over a 10-year period. The two plans combined total more than $4 trillion in government spending, on top of the $1.9 trillion coronavirus relief bill that Biden signed into law about 50 days into his term. The administration’s two most recent proposals include tax increases that we are told would pay for both plans in full over a 15-year period.
Biden’s proposed jobs plan would allegedly be paid for through an increase in the corporate tax rate. Wednesday’s proposal would roll back the 2017 Trump tax cuts by increasing the top individual tax rate from 37 percent to 39.6 percent for taxpayers in the top 1 percent of income. Biden is also proposing an increase in the capital gains tax rate for households making more than $1 million to 39.6 percent.
Senior administration officials made clear the proposal is meant as a starting point and that Biden is open to hearing suggestions on what should be included and how to pay for the package. But Republicans are likely to oppose Biden’s family plan, and the tax hikes proposed to pay for it, and some moderate Democrats could also oppose the plan because of its large price tag and tax provisions.
One Administration official quipped that if people have other ideas about financing these critical investments, Biden is open to hearing them. “But he believes that these issues of tax fairness, of making sure people pay the taxes they already owe, are fundamental and necessary.”
Why do Democrats continually call new taxes “Investments?” By definition, investments are voluntary. Unless I missed something in Civics and American History, taxes levied by any government are anything BUT voluntary! If anything, they should all be labeled “confiscatory budget Income snatches from American.”
Biden and other top administration officials are set to embark on a publicity blitz after Wednesday’s speech to educate the public about both the infrastructure proposal and the families’ plan to win over support for both measures. The White House now faces a complicated road to getting both proposals passed. Even as officials have said publicly, they hope to see some progress on an infrastructure bill by Memorial Day and passage by summer. The White House has not ruled out using budget reconciliation to pass Biden’s proposals without GOP support, which Democrats resorted to passing his coronavirus relief bill.
It isn’t easy to find a way to sell Americans the legitimacy of these Biden spending plans. Think about the cost involved in implementing these programs. There are so many negatives that will be automatically triggered the instant implementation on any level begins: inflation will soar, job openings nationwide, AND unemployment will both skyrocket almost immediately while employers will beg for employees. Why? When this plan is added to the other federal giveaway programs already in place, American workers will have a few more reasons to “take a paid vacation on the government’s dime.” Whether temporary or permanent, millions of Americans will view this as another way to let the federal government pay directly for citizens NOT to work anymore!
The immediate and dramatic results will include massive across-the-board price hikes, inflation that will rival the Jimmy Carter era in which prime lending went to twenty percent. Mortgage rates in the late 70s approached sixteen percent because of “Carter-flation!” Have you noticed gas prices creeping up since inauguration day? A one-dollar gallon increase at my station. Grocery prices are soaring. Home construction employees and their bosses will shutter their operations soon because of massive material cost increases. Lumber prices have already doubled across the nation!
Someone has to pay the bill. It’s a pipedream to think that the Federal Government will pay for all this. The Federal Government owns NO money. If any or all of these Biden spending fiascos are implemented, you and I will be working for the Feds while they continue to blow tax dollars on their pet projects. And they’ll keep the populace happy by saying, “Sit down and shut up! We’re taking care of you financially.”
Former British Prime Minister Margaret Thatcher once said a nation’s Socialist economic philosophy stops working immediately when the government runs out of other people’s money to spend. We’re pretty close to that happening here, and we’re still — at least for now — still a Capitalist country.
I don’t know who first said it — someone much smarter than me: “A country’s economy will immediately collapse when the half of the people that pay ALL the taxes quit working and join the other half who don’t work at all.” (paraphrased)
But, there’s no need to worry: Joe Biden, Nancy Pelosi, and Chuck Schumer have this already computed and structured. Yes, they know it will never work for the middle class. In fact, it will destroy families like no previous spending policy in history. They’re not worried, though: they’ve already got their lottery winnings stashed away. And we paid for their lottery tickets!