By: Konrad Holden
On Monday, the Texas Public Policy Foundation released a study revealing the potential effects of implementing Biden’s $3.5 trillion ‘tax and spend’ bill. The study estimates that 5.3 million jobs will be lost over the next 10 years and that America’s GDP will drop by $3.7 trillion. The US will also drop from 21st to 30th among world nations in tax competitiveness.
The Biden administration has unveiled one of the “largest spending bills in history” according to moderate Democrat Sen. Joe Manchin.
Left-wing Sen. Bernie Sanders called it “the most consequential piece of legislation...since FDR and the New Deal.”
Biden’s $3.5 trillion “reconciliation” bill and $1.5 trillion infrastructure bill are currently hotly debated in the House and Senate.
But a new study from the Texas Public Policy Institute revealed that the bills would have devastating effects on American jobs and taxes.
Here are just a few of what the study suggests will happen:
Capital gains tax rate up by 25%
Marginal income tax rate on some small businesses raised by 24%
$6.89 tax raised per barrel on imported petroleum and increase tax with inflation
Median family’s income drops by $12,000
Marriage penalty on small business owners as high as $130,200 annually
Corporate tax rate hikes reduce wage growth by 23.1% for employees
National Debt increase is an extra $35,439 in debt on each American household
In addition, the study shows that Arizona and West Virginia would shoulder $97 billion and $24 billion of the cost, respectively. Those states both have Democratic Senators who are on the fence about the legislation.
“Given the current state of the economic recovery, it is simply irresponsible to continue spending at levels more suited to respond to a Great Depression or Great Recession—not an economy that is on the verge of overheating.” - Democratic Sen. Joe Manchin of West Virginia