Yesterday, President Biden announced his plan for $2 trillion in new spending — after $1.9 trillion in deficit spending last month — and the largest tax increases since 1968. The absurd price tag is not an April Fools’ Joke. It is the latest example of Bidenomics in action: blind faith in government spending and regulations, blank checks for left-wing ideologues, and far less money and freedom for families, small businesses, and workers.
Like his so-called COVID bill that spent less than 9 percent to defeat the virus, Biden’s so-called infrastructure plan spends less than 6 percent to repair bridges, highways, and roads. The rest is a “kitchen sink” of wasteful progressive demands, payoffs for labor unions and radical environmentalists, and job-killing regulations that Rep. Alexandria Ocasio-Cortez recently likened to the Green New Deal.
For example, the Biden proposal:
- Gives $174 billion in subsidies for electric vehicles and $213 billion in subsidies for retrofitting homes, which are among the most wasteful ways to reduce emissions, as Greg Ip points out in the Wall Street Journal.
- Mandates one-size-fits-all environmental regulations, such 100 percent green energy for federal buildings, and spends $100 billion to “decarbonize” the energy grid by 2035. Note that similar mandates are already raising energy and home costs in states such as California despite subsidies, especially for working Americans.
- Fast-tracks $80 billion in new subsidies for Amtrak and its unions, even though Congress provided billions in aid to Amtrak last year.
- Revokes pro-worker Right to Work protections in 27 states, infringing on workers’ privacy and freedom of speech, and requires all federally-aided projects to have “project labor agreements,” which will raise construction costs.
To pay for this sweeping transformation of American life, President Biden also announced the largest tax increase in a generation.
- Raises America’s corporate tax rate to the highest in the developed world, and higher than communist China.
- Adds billions of dollars in new taxes for American workers and families, according to the Joint Committee on Taxation.
- Asks the rest of the world to raise their taxes too.
Crushing tax hikes are the last thing American families, workers, and small businesses need or should have to worry about as we recover from the pandemic. It will kill jobs, reduce wages, and send American jobs overseas, including to China. Biden is breaking his pledge not to raise taxes on workers and families.
By contrast, Republicans reduced Americans’ tax burden when we passed the Tax Cuts and Jobs Act in 2017. The TCJA is one of the main reasons the economy was the best in a generation before the pandemic, and it is the reason the economy is rebounding so quickly. But Democrats such as Vice President Kamala Harris have vowed to repeal it.
Republicans are committed to investing and improving America’s infrastructure, but any plan must be targeted, paid for, and pro-worker. This is no place for political handouts, federal overreach, or the Green New Deal.
President Biden has already shown that his job-killing infrastructure policies are bad for blue-collar Americans. On Day 1, he eliminated thousands of good jobs by killing the Keystone Pipeline. Roughly 60,000 labor man hours and about $126 million in wages were lost by this decision, according to a local labor leader’s estimates. Small businesses like the Stroppel Hotel in South Dakota also suffered.
If you are an American in the middle or working class, you are about to become poorer. Bidenomics — wasteful multi-trillion dollars spending plans and soon-to-follow tax hikes — will cause it.