President Biden’s $2.3 trillion “American Rescue Plan” is offering up tax hikes for all. Biden’s massive proposal includes,
- $621 billion to modernize transportation infrastructure,
- $400 billion to help care for the aging and those with disabilities,
- $300 billion to boost the manufacturing industry,
- $213 billion on retrofitting an building affordable housing and,
- $100 billion to expand broadband access.
In addition, we’re going to convert eliminate carbon emissions by 2035.
And, you–the American taxpayer and American business owner–are going to pay for all of it.
Never mind that we can’t afford it.
Even former Clinton Treasury Secretary Larry Summers knows that. He is worried about inflation and cautions that this is the most irresponsible fiscal policy in 40 years and that the U.S. could face, “a pretty dramatic fiscal-monetary collision.”
Summers is right.
Meanwhile, what’s going to happen to the overall American economy when businesses realize they need to cut jobs or move oversees to meet the President’s proposed corporate tax rate of 28%, up from 21%, while increasing taxes on companies’ foreign earnings.
Meanwhile, what happens to consumer spending when people cut back because of either higher taxes, or higher inflation? If you don’t believe inflation is coming then I have some oceanfront property to sell you in Arizona. Inflation WILL hit in one way, shape, or form. How can it not? When our Fed and Treasury are together are printing money.
Money doesn’t grow on trees…except, apparently, in Washington.
There will be consequences. Plan with caution.