(TargetLiberty.org) – Tax and spend, tax and spend. That’s been the guiding principle of the Democratic Party for decades. They’ve gotten pretty good at cloaking their goals under fancy names like the “Affordable Care Act” and the “American Rescue Plan.” But facts are facts, and numbers are numbers — and underlying these mega-bills promoted by Democrats is the fact that our children and grandchildren will eventually get stuck with the bill.
Their latest ruse involves a so-called infrastructure bill inappropriately called the “American Jobs Plan.” Joe Biden unveiled the $2 trillion bill for the first time during a March 31 speech in Pittsburgh, Pennsylvania.
He promoted the bill by claiming it will create millions of jobs and put the United States in a position to compete globally with China. So what’s in his proposed bill? Is there any chance he’s right? Let’s take a look.
Understanding the American Jobs Plan
The root concern of spending bills like the American Jobs Plan is its funding. Here’s what Biden said he plans to do.
He started by promising that “no one making under $400,000 [would] see their federal taxes go up.” However, he stated that he plans to raise the corporate tax rate from 21% “up to 28%.” In all likelihood, corporations will have to pass that increase along to consumers, and if that doesn’t balance their books, job cuts or decreased hiring practices will follow soon after.
Whoops, there goes his millions of new jobs.
He also proposes to invest heavily in green energy. As he puts it, his infrastructure plan “will lead to a transformational progress in [the nation’s effort] to tackle climate change.”
Whoops, there goes millions of existing energy sector jobs.
What About China?
Returning to his claim about China, his proposed corporate tax rate of 28% will immediately outpace China’s long-standing rate of 25%, giving them a global edge the instant he signs his plan into law — that is, if he can get it approved.
The good news is that with Democrats holding a slight edge in the House and a razor-thin edge in the Senate, they likely can’t muster up enough votes to pass the American Jobs Plan without the support of Republicans. And like the odds of snowballs surviving in very hot regions, we all know the chances of them voting for a massive tax increase paid for at the expense of global competitiveness in financial markets and American jobs at home. It’s a non-starter.
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