(UnitedVoice.com) – Get your wallets ready. The taxman is looking for more money to pay for the government’s massive multi-trillion-dollar spending sprees. On Wednesday, April 7, President Biden announced his plan to pay for his controversial $2.3 trillion infrastructure package. Biden repeatedly states that the middle class won’t see an increase in their taxes. However, his continued struggle with the truth makes it unlikely he really means it.
Biden’s proposal is the largest corporate tax increase in decades. He seeks to increase it from 21% to 28%. However, not all Senate Democrats are on board with the idea. Still, Biden continues to apply public pressure on Republicans, who have no intention of passing it. As a result of the box he’s being put in, Biden said he’s willing to negotiate on taxes. The question isn’t if he’ll negotiate or even if he has much leverage. The question is, what is there to negotiate?
Biden Uses Grandiose Language
The last truly bipartisan inspirational US president may have been Ronald Reagan. Biden doesn’t illicit much excitement within Congress or even the public. However, he deserves some credit for at least trying. According to the 46th president, America needs to think ahead and focus on tomorrow’s infrastructure needs, not just today’s needs. On the surface, some of his ideas are not bad. The roads, bridges, and airports need updating. Much of the country does need broadband internet still, and there’s no question the electric grid needs updating.
What a politician says is not as important as what he or she means based on recent context. Biden says we need to fix today’s infrastructure while building for tomorrow’s needs. He redefines infrastructure. It’s not just roads, bridges and other critical infrastructure. It’s also free community college, government investment in electric cars, and caring for older and disabled Americans. According to Sen. Roy Blunt (R-MO), only 30% of the proposal actually goes towards infrastructure. The rest is either a down payment on the Green New Deal or an expansion of social spending programs.
What Is Biden Really Negotiating?
Translation – America needs to embrace the green new deal one way or another. The Left is not open to negotiating on Biden’s proposal. It’s too big a stepping stone to their end goal on environmental activism. So, paying for it isn’t going to be easy once the Democrats in Congress get their hands on the proposal, change it and explode its cost. Some Democrats are calling for a $10 trillion bill.
The truth is the Democrats never wanted Corporations to get a tax cut in 2017. The result was a hiring spree, bonuses, and increases in wages across the board. That’s what Biden is negotiating. He wants to go back to stifled wages and fewer jobs. Of course, he doesn’t believe that will be the result. In fact, he believes a tax increase on corporations won’t hurt one bit.
The reality is that corporations don’t pay taxes. Biden’s right about that. They are just a pass-through entity that collects taxes on transactions. The truth is it’s the consumer and employees who pay the taxes. However, the cost to collect those taxes is high, and as a result, the middle-class consumer pays for the majority of the costs through price increases.
So, what is there to negotiate? Biden’s choice is to raise the corporate rate that hurts the middle-class or raise taxes on the middle class. In either case, it’s essentially the same thing.
Open your wallet. The government wants to take some money.
Don Purdum, Independent Political Analyst
Copyright 2021, UnitedVoice.com