September 30, 2021

 New Study Reveals Biden's Legislative Agenda Will Kill 5.3 Million Jobs

  • Executive

By: Konrad Holden

In Brief: 
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 Background: 
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.

Notable Quotes: 

“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

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