Our president and other Democrats have come up with a massive new “human infrastructure plan.”
The United States has $ 28.5 trillion in unsustainable debt and Biden plans to add a lot more with his $ 3.5 trillion additional spending plan. It will be the biggest expense ever undertaken by the federal government but wait, it just gets worse and worse.
Much of this $ 3.5 trillion plan is just a advance payment. Much of this is just for first year expenses. It is forecasting recurring spending, which may well come close to a $ 5.5 trillion spending spree.
The United States now has the highest level of national public debt as a percentage of our gross national product, worse than Italy, Greece and a host of Third World countries.
Should we care? Yes, because we, the middle class, are going to have to bear the brunt of these expenses, the resulting debt, inflation and high interest rates.
People ask, “Where is this money going? No one is really sure. A better question – or is this derived from?
Biden said it would come from increased taxes paid by the “rich” and corporations. “Pay your fair share,” he said.
Let’s look at our federal budget.
Our annual income from all sources averages around $ 3.5 trillion per year and has remained stable over the past several years. Personal income taxes contribute about $ 1.7 trillion.
Corn our expenses have exceeded our revenues and they are increasing. In 2019, the Trump budget had a $ 900 billion income and expenditure gap, so we borrowed it.
Biden’s 2022 budget plan has revenues rising to $ 4.1 trillion, but spending soars to over $ 6.0 trillion. That’s an annual deficit of $ 1.9 trillion for 2022, up $ 1 trillion from the days before the pandemic, and that’s ahead of his big spending plan.
Even if Biden doubled everyone’s income taxes, he couldn’t close the budget gap.
The “rich,” that is, the richest 1%, pay almost 40% of personal income tax, and this percentage has doubled since Reagan. The richest 10% pay 70% of income tax. How much more can we count on from them?
Corporations pay less than 10% of all income taxes.
What politicians don’t understand (or don’t want to understand) is that jobs, money, and capital are mobile. The rich can take advantage of tax breaks, and businesses can move money and jobs to take advantage of lower tax rates.
Corn the national debt will always be there, up to us to pay.
Interest on our national debt is about $ 400 billion a year. That’s low thanks to the Federal Reserve keeping rates artificially low, but growing debt levels combined with inflation and higher interest rates will soon take it to $ 1 trillion, more than our military budget and about 16% of Biden’s budget.
The bottom line is that we can’t afford the crazy new spending Biden is proposing. We can’t even afford its 2022 budget.
Perhaps Republicans are right in refusing to approve an increase in the debt ceiling without substantial concessions to the reckless spending proposed by Biden and other Democrats.
Representative Van Drew and Sens. Booker and Menendez are smart lawmakers and must hear us all ask them to fight for sound fiscal policy, because we will be the victims if we do not speak out.