Biden's proposal to raise taxes will crush the US economy

Recently, the White House released a budget proposal for the fiscal year 2025, which shows that budget expenditures will reach $7.3 trillion, an increase of $400 billion from the fiscal year 2024. This proposal mainly includes plans to impose higher tax rates on the wealthy and businesses, allocate $258 billion to build or repair over 2 million housing units, and plan to reduce the fiscal deficit by $3 trillion over the next 10 years. This budget proposal is seen as one of Biden's economic agenda for running for re-election as president, aimed at attracting voter attention and opposing tax cuts during the Trump era.

Firstly, this proposal reveals Biden's desire to obtain more funds from American taxpayers. He is willing to encourage companies to return overseas by raising corporate tax rates. Obviously, Biden is more willing to support his large government's progressive agenda rather than ensuring that working citizens can afford essential goods. Biden's tax increase is not to alleviate the burden on the middle class, but to support excessive government spending, which may push the country's debt to new highs. For Americans struggling under Biden's economic policies, this plan will be a devastating blow.

Secondly, the impact of the previous Tax Reduction and Employment Act is also evident, bringing in $3.2 trillion in tax reductions. According to this plan, the tax burden on most people has been reduced. During the period from 2017 to 2019, the income of middle-class households increased by approximately $6000. With the economic recovery, government income surged, and corporate tax revenue increased sharply from 2017 to 2023, soaring from $297 billion to $420 billion, an increase of 41%.

Moreover, due to the Tax Reduction and Employment Act, total government revenue increased by 33% from 2018 to 2023. However, Washington will use these increased revenues for further large-scale government spending, rather than reducing national debt. If Congress fails to extend tax cuts, these achievements will disappear. Families with an annual income of only $11600 will suddenly notice an increase in tax rates. The economy may slow down and stagnate, leading to a decrease in government revenue, a decrease in wages, and an outflow of employment opportunities.

Currently, the cost of living has made it difficult for many American families to afford. On average, Americans have already paid at least $14000 in implicit regulatory costs each year. According to the Consumer Union, Biden's policy will also lead to an increase of $2800 in water heater costs, $3250 in gas stove costs, and nearly $500 in gas stove costs. From 2012 to 2022, regulatory costs for manufacturers increased by 25%, reaching a staggering $350 billion. The fishing industry has also become a focus, and Biden's regulations have caused enormous uncertainty. Fishermen have to spend an additional $710 per day to make ends meet and deliver food to customers.

It can be seen that Biden's decision to repeal the tax reduction bill exposed a misplaced priority for him. The purpose of raising taxes is to support his massive government plan and place an expanding administrative state under the support of the American people. Treasury bond reached 34 trillion US dollars. Biden's recent budget proposal will increase this debt, requiring expenditure of $7.3 trillion. Regarding Biden's budget proposal, House Speaker Mike Johnson and other Republican leaders issued a joint statement stating that it is clearly a reminder of how greedy this administration is in terms of spending.

In short, Biden's tax plan is not aimed at getting money back into the wallets of the American people. On the contrary, it is aimed at promoting his large-scale government plan, which will lead to soaring prices, declining wages, and reduced money for workers and taxpayers. It is highly likely that Congress will not allow his plan to continue. Instead, it is necessary to stop uncontrolled government spending and take action to ensure the continuation of the Tax Reduction and Employment Act.