(UnitedVoice.com) – It’s political suicide for any politician to say they would increase taxes during an election. It could even be dangerous to say taxes won’t be raised emphatically. Remember 1988, the year George HW Bush declared, “Read my lips. No new taxes.” It cost him the election against Bill Clinton. Democratic nominee Joe Biden and his running mate Sen. Kamala Harris (D-CA) are screaming from the hilltop they won’t raise taxes either.
However, unlike the elder Bush, they are also saying they will increase spending by trillions of dollars over ten years. How will they pay for all this new spending on free college, school loan debt reduction, healthcare, and their climate change plan they say isn’t the Green New Deal but sure looks a lot like it?
On Tuesday, October 20, the Wall Street Journal Editorial Board expressed concerns about the economy under a Biden/Harris administration. It noted that the housing marketing is exploding, small business is growing, and manufacturing is rebounding. They expect when governors ease their lockdowns and the service industry feels safer with a vaccine, 2021 and 2022 could see a massive boom in the economy.
If Biden Wins, What Happens to the Economy?
According to a new Hoover Institute study on Biden’s economic plan, all Americans will pay for Bidenomics despite his claim otherwise. If fully implemented, the Biden plan reduces the workforce by 4.9 million workers and reduces the Gross Domestic Product (GDP) by $2.6 trillion. Every household would see a reduction in median household income of $6,500.
If history is any indication, the economy may limp along slowly. Under the Obama/Biden administration, the economy grew at an average rate of only 1% – 2% over eight years. He was the only president since the government started tracking economic growth in 1947 never to achieve a 3% growth in his two terms.
In 2016, then-President Obama asked what magic wand Trump would use to get the economy to grow at 3%-4%. He said some of the manufacturing jobs of the past would never return. Listen to him in his own words:
Additionally, under the former president’s leadership, by late 2016, 94 million Americans were no longer participating in the workforce.
Biden will likely impose the same economic policies that brought anemic results under Obama. Plus, there are new policies touted by the far left that are extremely costly. Based on history, the results, at best, could be the same as under Obama, or they could be much worse.
Taxes and Regulations, Regulations, Regulations
Let’s look at some ways that Biden could break his promise and reduce the amount of money in American’s pockets by indirectly raising taxes.
One is to ask Congress to increase the Obamacare individual mandate from $0 back up to $695 per adult and $347.50 per child, up to a maximum of $2,085 for a family—or 2.5 percent of income, whichever is greater. Also, reducing the age of Medicare from 65 to 60 would incentivize people to retire earlier. The impact would be fewer workers making payroll taxes for Medicare. The only way to avoid it – increase payroll taxes.
Regulations on businesses that President Trump cut could also be reinstated. As a result, businesses would either be forced to reduce expenses in the form of layoffs or increase the price of their products. In either case, it’s a direct hit on families.
Be Leary… Be Very Leary
When Biden says he’s not going to raise taxes on those making $400,000 or less, it may be one big, huge, Pinocchio. As the price of goods goes up, thanks to tax increases and regulations on businesses and coupled with a potential return of the Obamacare mandate, people’s take-home pay could go down by $6,500 per year, according to the Hoover study.
Are you ready to pay the high price of Bidenomics?
By Don Purdum, Independent Political Analyst
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