There seems to be something for everyone in the huge spending packages that are currently passing Congress. Also, at a price tag of $ 4.6 trillion, or $ 37,400 per household, government-paid family vacations, monthly child payments, free community colleges, union membership amortization, $ 12,500 electric vehicle tax deductions, new bicycles, and more. We provide something to everyone. Path — Easy.
Politicians who want to grow their government want to talk about how great this grab bag is for workers, families, and the economy. And they promise that only big companies and really wealthy people will pay higher taxes.
But it’s like selling a soup-coated Lincoln Navigator to a family who wants a minivan, both inferring that they need the same down payment.
Families are worth knowing how big government policies will cost — not just taxes, but the prices they pay for everything from their salaries and gas and groceries to utilities and childcare. How will it affect you?
Let’s start with taxes. Taxes are already consuming much of the American budget than food, housing, and clothing combined.
President Joe Biden has promised not to raise taxes on people with incomes of less than $ 400,000, but a nonpartisan official scorekeeper in Congress said his plan would raise taxes on millions of middle-class families. ..
Starting in 2023, taxes will be raised for nearly 6 million taxpayers under $ 100,000. By 2027, more than half of all families earning between $ 75,000 and $ 100,000 will pay more taxes. Taxes will even rise to hundreds of thousands of families who earn less than $ 20,000 a year.
Of course, taxes aren’t the only thing that affects a family’s budget.
The income earned by workers, and the prices they pay for goods and services, also determine the family’s income.
The proposed corporate tax rate of 26.5% puts the United States at a competitive disadvantage. Even the Chinese Communist Party has leveled only a corporate tax rate of 25 percent.
Companies tend to think in abstract ways, such as corporate logos and large buildings, which makes them more likely to be subject to tax increases. However, logos and buildings do not pay taxes. People do so.
Throughout the United States, businesses have been hit by major tax increases, and economists agree that they are most often paid by employees of these companies through reductions in wages, jobs and allowances.
If higher taxes and lower incomes weren’t bad enough, another pressure on the family’s budget would be higher prices.
The risk of inflation increases after COVID-19 spending reaches $ 6.5 trillion and the Federal Reserve has purchased more than half of the significant increase in US debt over the past year. An additional $ 4.6 trillion in spending between the $ 1.1 trillion infrastructure package and the $ 3.5 trillion big government socialist package will further stimulate the risk of inflation and the financial crisis.
And finally, so-called green energy policies will bring special benefits to wealthy Americans and businesses, while dramatically increasing the costs of ordinary Americans. For example, the current $ 2,500 to $ 5,000 electronic vehicle (EV) tax deduction, which benefits businesses, California residents, and individuals with incomes of $ 100,000 or more, is zero for ordinary Americans. Even if you have a tax deduction, it will increase to $ 12,500. Energy bill.
The Green New Deal isn’t full, but Democratic Senator Edmarkey, one of the deal’s sponsors, said the $ 3.5 trillion settlement spending package “The Green New Deal is in DNA.” Said.
According to a Heritage Foundation analysis, the Green New Deal will cost $ 1,991 a year for all Americans and nearly $ 8,000 a year for a family of four over the next decade.
Combined, higher taxes, lower incomes, higher prices, and additional energy costs could cost a typical American home $ 100,000 over the next decade.
Compared to the new government spending of $ 37,400 per household, this is a fairly raw deal for the average American.
Rather than trying to market Americans with policies that redistribute workers’ income and redirect family choices, lawmakers all Americans achieve increased income and make the best choice for them. We need to find policies that help increase the freedom to pursue.
Rachel Gresler is a researcher in economics at the Heritage Foundation (heritage.org).
Commentary: Washington’s big spending plans promise a lot, but are they worth the cost?
Source link Commentary: Washington’s big spending plans promise a lot, but are they worth the cost?