A new report analyzing President Joe Biden’s “Build Back Better” plan found it would shrink the economy and cut more than 100,000 jobs.
The Tax Foundation released an updated report this week after Democrats added paid family leave back into the embattled legislative effort.
According to the report, the plan would be a major job-killer and reduce long-term economic output.
“We estimate that the House bill would reduce long-run economic output by nearly 0.4 percent and eliminate about 103,000 full-time equivalent jobs in the United States,” the group said. “It would also reduce average after-tax incomes for the top 80 percent of taxpayers over the long run.”
The plan would also add to the national debt.
“We estimate that the bill would result in $752 billion of accumulated deficits (including interest payments) during the first decade, leading to an increase in payments to foreign owners of the national debt and a 0.02 percent reduction in long-run GNP,” the group said.
Nonetheless, the Tax Foundation admits that, “the tax provisions, IRS enforcement, and drug pricing provisions in the House bill would increase federal revenues by about $1.2 trillion over the next decade, before accounting for $451 billion in expanded tax credits for individuals and businesses, resulting in a net revenue increase of about $768 billion.”
“Excluding the anticipated revenue from increased tax compliance and the drug pricing provisions, the bill would raise about $503 billion from net tax increases over 10 years.”