Biden’s “Build Back Better plan” represents the largest tax increase, federal power grab in decades experts say
Released by The Heritage Foundation:
WASHINGTON – President Joe Biden unveiled the first part of his so-called “infrastructure” plan under the Build Back Better initiative. The plan is being used as a Trojan horse to hide a socialist agenda that would add trillions to the budget, hike taxes, and centralize federal power. It could mean at least a $2 trillion tax increase, the largest in five decades, hurting working class Americans and small businesses. Matthew Dickerson, Director of Heritage’s Grover M. Hermann Center for the Federal Budget, released the following statement on the plan:
Instead of reining in federal spending and eliminating barriers to help our economy grow as we emerge from the pandemic, the president is proposing a behemoth tax and spending plan that centralizes more power in D.C. under the false premise that only the D.C. elites can wisely dictate and control the economy. Biden’s proposal could mean an over $2 trillion tax increase on businesses of all sizes, hurting America’s poor and working families most. These tax hikes mean lower wages and higher prices for Americans. Hiking taxes on businesses may make for a provocative talking point on cable news, but it will crush thousands of employers as we seek to recover from the pandemic. Raising the corporate tax rate to 28% would give the U.S. the highest tax rate on job creators among our international competitors, making us far less desirable as a destination for investment and job growth, threatening America’s global competitiveness and slowing economic recovery.
David Ditch, Research Associate for Grover M. Hermann Center for the Federal Budget stated:
This plan gives Washington bureaucrats power over state and local governments and family businesses who know best how to rebuild their communities. Under the new plan, localities would bend the knee to federal bureaucrats enforcing rules that make projects cost more and take longer to complete. Not only that, but radical lawmakers are looking to stuff far-left, unpopular wish-list items into this proposal, including taxpayer-funded universal pre-K, expansion of government health care, and more just as they did with special interest bailouts in the recent “COVID stimulus” package. This plan promises to be the most expansive federal power grab in generations. The false promise of “free” benefits will only be possible through steep tax increases on working Americans. This far-left proposal won’t build anything except a more monstrous debt which young people and generations to come will be responsible for paying.
Instead of recklessly growing government and funding radical agenda items that Congress would otherwise be unable to pass, lawmakers should recognize the costs associated with endless federal spending and chart a course towards financial responsibility and prosperity.