The Biden administration is going on another multi-trillion dollar spending spree in the form of the American Jobs Plan less than a month after passing the $1.8 trillion American Rescue Plan (ARP).
The ARP was touted by the White House and Democrats as a pandemic relief bill but was heavily criticized by moderates on the left, and unanimously by Republicans, for allocating a meager 20 percent of its funding towards an actual pandemic-related stimulus.
The ARP passed the Democrat-controlled House and Senate narrowly along party lines using a budget reconciliation process which bypassed the 60 vote Filibuster Rule in the Senate.
On March 31, Biden revealed a new $2.25 trillion spending bill called the American Jobs Plan. In a lengthy Fact Sheet issued by the White House, the next stimulus package is described as an infrastructure bill that will fix bridges, the country’s water supply, electrical grid, and high-speed internet, as well as create jobs and raise wages for America’s lower and middle class.
The Fact Sheet claims the bill will be paid for by an additional bill, the Made in America Tax Plan, which will raise corporate taxes.
During comments given at the White House, Biden said “I start with one rule: No one — let me say it again — no one making under $400,000 will see their federal taxes go up. Period,” adding “We’re going to raise the corporate tax. It was 35 percent, which is too high. We all agreed, five years ago, it should go down to 28 percent, but they reduced it to 21 percent. We’re going to raise it back to — up to 28 percent.”
“No one should be able to complain about that. It’s still lower than what that rate was between World War II and 2017. Just doing that one thing will generate $1 trillion in additional revenue over 15 years,” said the President.
Joe Biden also said there would be a third spending bill his regime will unveil “in a few weeks” called the American Families Plan.
According to a March 30 article by the Washington Post, only $650 billion of the $2.25 trillion is earmarked for actual infrastructure. $400 billion will go to home and community-based health, $300 billion to subsidize affordable housing, $180 billion to research and development, and $100 billion to workforce development and job retraining.
The $1.8 trillion pandemic stimulus bill was widely criticized by Republicans as a “Democrat wishlist” that included items such as $200 million to build a train in Silicon Valley.
Washington Post also said that the tax increases would not be limited to only a 7 percent hike in the corporate tax rate. They said Biden’s plan would also “end federal subsidies for fossil fuel companies and increase the global minimum tax paid from about 13 percent to 21 percent, as well as other measures aimed at taxing corporations that shelter profits offshore to avoid taxes.”
American Jobs Plan is the Green New Deal
In an April 1 article by Washington Post entitled The Infrastructure Bill is Biden Politics at its Purest, the nation’s most prominent leftist newspaper was rather blunt in its characterization of the American Jobs Plan, “What it is, really, is the Green New Deal,” said author Philip Bump.
“The Biden proposal does largely the same thing. It includes a number of the same proposals, in fact, though not as overtly framed as being about climate change.”
“What the Green New Deal proposal did was loop a lot of sweeping changes to the economy into the idea that doing so would better prepare the United States for a warmer world and, ideally, to slow or reverse some of that warming,” said Bump. He added, “The Biden proposal, on the other hand, uses the more politically popular umbrella of infrastructure to incorporate some of those same shifts.”
Republicans, perhaps for the first time in ages, agreed with Amazon founder Jeff Bezos’s paper, the Washington Post, “I will not support a sweeping spending spree full of pet projects for Democrats that are not paid for and that advance the Green New Deal under the guise of infrastructure using the money of hardworking Tennessee taxpayers,” said Sen. Bill Hagerty, according to Fox News.
Republican Sen. John Barrasso slammed the bill as “an out-of-control socialist spending spree.”
Former President Donald Trump called the tax hikes a “classic globalist betrayal by Joe Biden and his friends” in a Statement issued on March 30.
In a March 31 report issued by Tax Foundation, a tax policy non-profit organization noted that not only did government spending produce only half the returns as private investment, but each dollar in federal spending produces only 67 cents in benefit because of reductions to state, local, and private spending that result.
The report cited data from the Congressional Budget Office (CBO) in its findings.
The CBO further found that spending plans, in general, were remarkably inefficient in their results, “CBO estimates that the average rate of return on private sector investment is currently about 10 percent—that is, that a $1 increase in private investment, all else being equal, increases output by 10 cents over a year.”
“As a result, the average rate of return on federal investment in the illustrative policies examined in this report is about 5 percent.”