President Joe Biden’s $2.25 trillion infrastructure proposal is a wretched mess of bloat, giveaways and Green New Deal-style posturing. The proposal would be paid for with a slew of tax increases on corporations. The main corporate tax rate would be raised to 28%, which would be about half as high as what it was before the Republican tax cuts of 2017 that lowered the rate to 21%. As Covid-19 started the businesses already battered by lockdowns and spending that money on liberal agenda items that make Democrats feel warm and fuzzy but do small to make America’s infrastructure better.
The tax hikes primarily target corporations, along with people who earn over $400,000 per year, but Biden said they weren’t meant to punish people. They are intended to create opportunities for others.
In other words, he thinks the only way to create opportunities is to take money away from the entrepreneurs who earned it and have the government spending it ‘creating opportunity for other people, which basically is taking a stake to the very heart of capitalism.”
Basically, opportunities get smaller as government gets bigger.
That is the Biden plan.
And this plan isn’t going to be good for the economy. It is going to be a burden on the economy.
Even if the money is well-spent – and it almost certainly won’t, given the government’s track record – the payoff is in the future. The economy today will have to bear the cost.
‘’That doesn’t help the economy. It will hurt the economy. Because now we have to divert resources out of current consumption to free them up to enable the building of all the infrastructure that isn’t going to pay off until years into the future. So yes, infrastructure can be important, and it could make you more productive in the long run. But in the short run, you’ve got to be able to pay for it. You have to be able to afford it. So, you don’t make the economy stronger in the short run by needing to spend money on infrastructure.”
White House press secretary Jen Psaki insisted, “We know that 80 percent or more of people in this country — Democrats and Republicans support investing in infrastructure,”. Well, that would be great, conservatives said, if it actually invested in infrastructure. But this proposal isn’t about fixing a few potholes. If it were, Minority Leader Mitch McConnell (R-Ky.) pointed out, Republicans might be on board. “There would be bipartisan support for a serious, targeted infrastructure plan,” he tweeted. But that’s not what this is. “Unfortunately, less than six percent of this massive White House proposal would go to roads and bridges. It would spend more on electric cars than on roads, bridges, ports, airports, and waterways combined.” It’s a trojan horse, he argued, “for massive tax hikes and job-killing Left-wing policies.”
Policies, Rep. Scott Perry (R-Pa.) pointed out on “Washington Watch” Wednesday, that have more to do with racial justice, climate change, elder care, “affordable housing,” violence prevention, and forced union membership than any meaningful repairs or construction. “Let’s be very clear here,” Perry pointed out. “Even the prime sponsors of the Green New Deal in the Senate said this is not an infrastructure package. It’s the Green New Deal. [We’re talking about] billions of dollars being spent on things like electric vehicle charging stations. Just think about that.” How many of you would think it’s appropriate for your taxes to pay for gas station construction? “The private sector built them, because they could fund those with private equity and make money on their investment. But yet now, we’re going to compete with the private sector and try and force you to pay for it — and then force you to drive an electric vehicle when we have the grid collapsing in places like California and Texas.” It’s concerning, he said.