NEWYou can now listen to Fox News articles!

Talk about a ridiculous advertising argument! Speaking of the record-breaking tax and spending package currently before Congress, President Joe Biden said on Friday, “It’s zero price tag on debt. We’re going to pay for whatever we spend.”

This is bluntly wrong, and it’s not even close.

While we do not yet have a full account of the 2,465-page juggernaut, the bill’s total spending and tax credits are expected to reach $ 3.5 trillion.

In contrast, the bill would raise taxes by about $ 2.3 trillion, leaving a gap of over $ 1,000 billion. Democrats say the difference would be offset by the imposition of price controls on prescription drugs and expected economic growth – even though independent analysis indicates the bill would in fact slow growth.


Yet rather than correct the record, Biden doubled and then some.

In a tweet on Saturday, he said “My Build Back Better program costs zero dollars.”

It is one thing to mistakenly claim that legislation is self-financing. It is quite another to pretend that perhaps the costliest bill in the history of the world has no cost.

More Opinion

Make no mistake: there is no free money. Every dollar the federal government spends must be taken from taxpayers or borrowed.

Further borrowing would be irresponsible. Federal debt currently stands at $ 28.4 trillion, or about $ 220,000 for every household in the country.

The problem is only getting worse, with tens of trillions in unfunded liabilities for programs like Social Security and Medicare. This is bad for retirees and future generations, and Congress refuses to address the coming crisis.

Tax hikes also come at a real cost, and not just for high income earners.

Despite Biden’s promises that his plan would not raise taxes for people earning less than $ 400,000 a year, official congressional markers show the tax burden will increase for families who bring home as little as $ 30,000. $ per year.

With the post-pandemic recovery still on shaky ground, this is a particularly bad time to increase the tax burden.

As for economic growth, a higher tax burden would weaken the competitiveness of American companies vis-à-vis their foreign competitors. It would also discourage private sector investment that creates jobs and spurs wage growth for workers.

With the post-pandemic recovery still on shaky ground, this is a particularly bad time to increase the tax burden.

Unfortunately, Biden’s absurd talk of a “zero dollar” cost is spreading. From Rep. Pramila Jayapal, D-Wash., Head of the House Progressive Caucus, to the mainstream media headlines on “zero” cost, there is now an active campaign to claim that a big radical government program is free.

Since “trillion” is an almost incomprehensible number, it is essential to understand what the $ 3.5 trillion price of the bill really means.

* The amount drained from the private sector is over $ 27,000 per US household, which is more than the cost of five years of groceries for a typical family.

* Spending $ 1,000 per second, it would take 111 years to reach $ 3.5 trillion. Yet because the bill would reduce that spending in a single decade, it would spend an average of $ 11,000 per second for 10 years.

* At the time it was passed, ObamaCare was one of the costliest pieces of legislation of all time. Adjusted for inflation, it cost $ 1.1 trillion, less than a third the size of Biden’s fiscal apalooza. Even the most ardent supporters of ObamaCare have never claimed that it has a “zero” cost.

Concerns about the legislation go far beyond its incredible cost. How those trillions would be spent is also fraught with problems.

Expanding the welfare state would discourage work for lower and middle class families, creating dependency on government rather than creating wealth.

Distributing hundreds of billions to “green” businesses would have no measurable effect on global temperatures, but it would create a new left-wing political constituency using taxpayer money.

Democrats are also determined to try to impose a mass amnesty for illegal immigrants in the tax and spending bill.


Ultimately, this legislation would concentrate more power and control in Washington DC. what the bill would do.

Instead of going through legislation longer than the combined length of two King James Bibles, Congress should slow down and consider alternatives.

Reforms to existing benefit programs can encourage work and reduce deficits in the long run. Maintaining a pro-growth tax code would do more for jobs and wages than any federal interference.


Taking a responsible approach to the nation’s finances would come as a welcome surprise. Sadly, Biden seems determined to pretend that whatever he wants is free.

He is wrong. And if the legislative package passes, America will pay a very real price.


Source link