So how does Joe Biden pay for his $2-trillion boondoggle?
Joe Biden said that he was going to pay, partially, for his $2 trillion ten-year slush fund, supposedly for infrastructure, with $1 trillion in new taxes on corporations which will be collected over fifteen years.
According to CNBC:
In it, the president calls for billions of dollars for transportation infrastructure, the care of elderly and disabled Americans, drinking water infrastructure, housing, manufacturing and job development and training.
To raise the money to pay for it, Biden is proposing raising the corporate tax rate, cracking down on companies offshoring profits and eliminating tax breaks for some industries. With the tax increases, the measure would pay for itself in 15 years, and thereafter reduce deficits, according to the White House.
Does anyone have trouble recognizing that ten years doesn't match fifteen years?
Politicians of both parties throughout the country have paid current bills with borrowed funds, sometimes for very long periods. Then states and localities say they balanced their budgets. I wonder why there are so many budget problems! The solution is to always raise taxes higher.
That is like an individual or family who makes $50,000 spending $60,000 every year and running up credit card debt of $10,000 and saying his checkbook is balanced.
Economics isn't that tough. When you continually take a greater share of money from the private sector, they have less to spend throughout the economy. Hence the economy slows.
Why do we pay politicians and bureaucrats in D.C. such high salaries and benefits when they have the common sense and intelligence of a rock?
Jack Hellner is a certified public accountant.
Image: Pixabay, Pixabay License.