It’s one tax increase after another from President Biden, Speaker Pelosi, and the rest of the Democrats in Washington.
The Treasury Department released its “green book” in late May detailing most of these tax hikes. But now, Democrats are sneaking in yet another: a 95% tax on the most common prescription medicines.
It’s amazing what controlling Congress with a tiny majority will do for confidence. The top personal income tax rate, which is also the tax rate paid by successful small businesses such as LLCs, sole proprietors, partnerships, and S corporations, would rise from 37% to 43.4%. The corporate tax rate would go up from 21% to 28%, close to the highest rate in the developed world. The capital gains tax rate would rise from 23.8% today all the way to 43.4% for higher earners. A second, “double death tax” would be created by taxing people on their unsold investments at death, assets that would then still be subject to the 40% death tax. Some Democrats are even grumbling that their leaders won’t try for even more tax increases on top of these, such as a gas tax hike or a carbon tax.
Then there’s H.R. 3, the crown jewel of healthcare legislation coming out of Pelosi’s slim majority. The bill imposes government price controls on 250 of the most common prescription medicines, including insulin. In order to make sure that the price control is adopted, the government gives an “option” for the drug to be subject instead to a brand new 95% drug tax. Since people ultimately pay taxes, the 95% Pelosi Drug Tax will fall directly on consumers of prescription medicines, notably seniors.
The next time the world needs a miracle cure for whatever we’re calling the next COVID-19, or for diseases such as HIV and malaria? Well, we might have a problem.
There is hope, however. Centrist House Democrats, in numbers high enough to sink H.R. 3, are coming out against the bill. They sent a letter to Pelosi this month asking her to scrap the bill and start all over again with a bipartisan, bicameral agreement that they could sell back home. They’re thinking about the 2022 midterm elections.
Bottom line: This is bad legislation that will hurt your bottom line and the future of American healthcare.
But there’s more to this Biden tax-and-spend landscape!
The new pitch aims to avoid Republican scorn by sidestepping the president’s previously proposed corporate tax rate hike. It would instead implement a minimum corporate tax rate of 15%, aimed at some of the most profitable corporations in the country.
The proposal marks a concession on the overall cost of the bill from Biden, whose last pitch was worth $700 billion more.
But Biden has not won over Republicans with this modified tax proposal, a GOP source familiar with negotiations told ABC News.
Republicans have been clear from the onset of negotiations that they do not support raising the corporate tax rate because they do not want to modify former President Donald Trump’s signature tax reform legislation. During a briefing on Thursday, White House press secretary Jen Psaki argued that by raising the minimum rate, the 2017 tax bill would not be altered.
“This should be completely acceptable to a number of Republicans who have said that they — they want to leave — their bottom line is they want to leave the 2017 tax law untouched,” Psaki said.
But according to the Republican source, GOP lawmakers see Biden’s rejiggered proposal, which includes several other tax modifications along with the 15% minimum rate, as nothing more than a corporate tax hike by another name. That brings back memories of Sarah Palin’s bid to replace Biden as VP in 2012. Remember this: “You can put lipstick on a pig, but it’s still a pig.”
So will Biden’s tax and spend budget, no matter how this administration tweaks it or what color lipstick they use to make it look like something else.
But, hold on, folks: believe it or not, it gets worse!
What’s A Few Trillion Between Friends?
President Biden will pursue as much as $6 trillion in new federal spending for the 2022 fiscal year, increasing to more than $8 trillion by 2031. His budget, which is the first full one since taking office in January, includes raising taxes on corporations and high-income households. The Oval Office forecasts that budget deficits would begin to wind down in the 2030s, long after Biden is gone.
The proposal reveals that the funding will go toward his two-part infrastructure project: the American Jobs Plan and the American Families Plan. These proposals go beyond roads and highways as they include subsidized child care, two years of free community college, free universal pre-K, and climate change investments. In addition, other funding will be designated for Medicare, Medicaid, Social Security, and Defense – the programs that eat up a great chunk of the annual budget.
Biden’s budget also forecasts that inflation will top out at 2.3% annually over the next decade. This suggests that the White House agrees with the Federal Reserve that inflation will be nothing more than a blip on the radar and that concerns of runaway inflation are overblown.
Since the Democrats possess slim majorities in both the House and Senate this year, the president has a decent chance of having these enormous spending requests approved. Meanwhile, Republicans are warning about a double whammy of rising inflation and higher taxes, with Rep. Kevin Brady (R-TX) saying in a statement that “President Biden’s budget blunder sets us up for an even worse economic recovery than the Obama-Biden record of the slowest in history.”
So, is this an investment in America’s tomorrow, or even more costly expenditures that will weigh on cash-strapped taxpayers and penalize future generations?
Will US Deficits Have Consequences?
A decade ago, the $1.3 trillion budget shortfall seemed like the good old days compared to what lies ahead for Uncle Sam’s balance sheet and pockets. Instead, the United States is in for a level of spending unseen since the Second World War. Typically, presidents put together a wish list budget and a practical alternative. Many of the policies emanating from the Oval Office or the chambers do not appear pragmatic.
Biden and his team will inevitably try to market this plan in a number of ways: discuss how it will build America back better, argue that only the wealthy will pay for it, and promise that the deficits will certainly be wiped out by the next decade. But are these reasonable ideas?
“Build back better” has been the slogan for both Biden and his counterparts in the aftermath of the coronavirus pandemic, choosing to hit the great reset button to accomplish progressive objectives. In the short term, perhaps offering free child care and free tuition will provide a jolt to the broader economy. However, as borrowing costs rise and bubbles begin to deflate, the bills will need to be paid. Remember, the U.S. is still trying to pay for all the egregious outlays since the last recession.
So far, the administration has vowed that higher corporate tax rates and an increase in the capital gains tax will serve as panaceas to the sky-high price tag. On the surface, it looks like the wealthy are footing the bill (the top 5% pay almost all the nation’s taxes). However, once that same plane is shattered, the unintended consequences are uncovered, such as capital fleeing the country or the higher tax rates being passed onto the consumer in the form of stealth inflation.
What the heck is going on in this administration? Even everyday Americans understand that it’s impossible to tax a country into prosperity. Oh, but it IS possible to tax a country into an economic depression! Does Joe Biden actually know what runaway government spending does to average Americans? Certainly, he knows! He may be in some type of cognitive decline, but he’s a consummate Democrat politician so he KNOWS well the economics of “tax and spend.” Democrats have perfected it. It’s their roadmap to governing panacea: “promise the world, tax the people to give them the world, then leave them in economic horrors that take a decade or more to fight through.” After all, those same Dems will no longer be in control so feeling heat is something they won’t taste.
Even considering all of the above, I’m certain the Democrats in power have more madness hoped for at the end of this tax and spend nightmare: a Democrat Party perpetual power in government in which they control EVERYTHING. In that utopia, taxing the people will NEVER be a problem. Why? The government (controlled by their party in total) will NEVER have to face the challenges that come with free and fair elections. After all, why even have elections at all if your party determines every election outcome?
With their seized power and a few election cycles to soak Americans with unsustainable debt, massive inflation, foreign policy fiascos too many to even remember, and government corruption that dwarfs that in Venezuela, those Democrats will have no one to check their actions or be thrown out of office. They will control everything!
There are far too many examples of their hoped-for totalitarianism to which we can point as a comparison of the model Dems plan to foist on our nation. Don’t be tempted to lean back in your chair and think, “They can never pull something like that off. Americans are too smart and have too much political will and power to allow such travesties to occur. We the people will stop them!”
The problem with that is two-fold: one, the people will no longer have the power to address any of this corruption in the “normal” way: like kicking those evil lawmakers out by voting them out. Secondly, by the time Americans find a way to take back their government, these same Democrats will have long before milked the U.S. economy of every dime they can find. In doing so, the U.S. economy will fall hard, fall far, and will fall quickly. There will be no stopping it.
So what do I suggest? Start making noise — and lots of it! Point every person you know to these discussed facts and talking points. Let’s face it, folks: most people are too busy, too occupied, to even weigh into such a slanted and evil political hierarchy under which we all live. That could only happen — if it could happen at all — if American voters had power and the unity of principle to even do such a thing. I don’t think Americans have either.
Get ready, folks. We need to buckle down. It’s going to be a wild ride. In fact, the Biden Corruption Train left the station months ago. And it’s not going to stop until it reaches the station at Biden La-La Utopia, USA!
I don’t know about you, but I don’t even have a ticket to board that train. And if I did, I doubt that I would use it.