Fiscal Irresponsibility

If you read the stories about Joe Biden’s budget proposal, you’ll see some sleight of hand happening. Take this New York Times article for example.

President Biden on Thursday will propose policies aimed at trimming federal budget deficits by nearly $3 trillion over the next 10 years as his administration embraces the politics of debt reduction amid a fight with Republicans over raising the nation’s borrowing limit, a senior administration official said on Wednesday.

Notice how the article references “debt reduction,” but all Biden wants to do is reduce the deficits. The national debt is over $30 trillion. The deficit is the annualized gap of expenditures exceeding revenue. It rolls over into the national debt. But the deficit is the annual budget gap, not the national debt.

In other words, Biden wants to reduce the annual gap in the budget by $3 trillion over ten years and does it without a spending cut, just tax increases. His tax increase on unrealized gains is arguably unconstitutional — a tax based on the value of one’s portfolio, which is not a liquid asset, just a paper prognostication.

H wants to double taxes on capital gains. He wants to raise the maximum income tax rate. He wants to raise the corporate tax.

He wants to cut nothing.

I’m almost tempted to suggest the GOP should give him exactly what he wants. It would wreck the economy. Biden’s proposal is an unserious proposal from an unserious administration designed to not be passed. Even some Democrats will not want to pass it because of the economic carnage that would ensue.

But by refusing to pass it, the Republicans can be attacked for refusing to tax the rich. Biden can attempt a pivot with the working class.

Notice, too, the media is not calling him out on this plan. The media, so far to the left now, will totally embrace tax increases and no spending cuts while blasting the GOP for trying to cut the size and scope of Washington.

Meanwhile, if you haven’t noticed, banks are suddenly in crisis with worries about bonds and bad debt. The economy continues to spiral. Interest rates continue to rise. A recession is coming. And Biden wants massive tax hikes on areas of the economy that would not generate the projected revenue when in a recession.

In other words, Biden would wreck the economy, not generate the revenue he claims, and still want to spend more. He would worsen inflation, the national debt, and the economy.

Republicans must not worry about the negative press and actually be responsible. They have to reject his plan.