{"id":6920,"date":"2021-05-23T23:33:50","date_gmt":"2021-05-24T03:33:50","guid":{"rendered":"https:\/\/granitestatetaxpayers.org\/gst\/?p=6920"},"modified":"2021-05-23T23:38:20","modified_gmt":"2021-05-24T03:38:20","slug":"biden-plans-will-wreck-the-u-s-economy","status":"publish","type":"post","link":"https:\/\/granitestatetaxpayers.org\/gst\/biden-plans-will-wreck-the-u-s-economy\/","title":{"rendered":"Biden Plans Will Wreck the U.S. Economy"},"content":{"rendered":"

Biden Plans Will Wreck the U.S. Economy.<\/strong>
\nThis May 11, 2021 column by Peter Roff for American Action News is posted with his permission.<\/em><\/p>\n

As slogans go, \u201cbuild back better \u2013 which Joe Biden used to define his 2020 bid for the presidency \u2013 lags well behind \u201cHappy Days Are Here Again,\u201d \u201cMake American Great Again,\u201d and \u201cI Like Ike\u201d in clarity and vision. It\u2019s not even close to \u201cIt\u2019s the economy, stupid,\u201d the unofficial campaign mantra of Bill Clinton\u2019s successful run in 1992. <\/p>\n

What Biden\u2019s been doing during his first one hundred suggests even he didn\u2019t understand what he meant. If he planned to create millions of new jobs \u2013 good jobs at good wages with good benefits as the Democrats used to say \u2013 the April jobs report indicates he\u2019s failing. <\/p>\n

\"IMG_1870\" <\/a><\/p>\n

What\u2019s gone unreported is that jobs that are coming back \u2013 and there are some \u2013 are coming back as lockdowns are ending. The economic downturn that appears now to be ending was not the product of an expected downturn in economic activity but the direct result of state-by-state lockdowns that forced businesses to curtail operations or close as part of an ill-conceived effort to slow the spread of the coronavirus. <\/p>\n

To supplement lost income, the Pelosi-led Congress joined first with Donald Trump and then with Biden to put the nation on relief. It\u2019s no wonder, therefore, that business leaders are complaining they can\u2019t find people to fill the jobs they have available once the Washington politicians incentivized joblessness instead of work by extending and enhancing unemployment benefits. It should be obvious that when you pay people not to work, they won\u2019t work but somehow the experts in D.C. missed this.<\/p>\n

Biden and the Democrats are nevertheless still all in. They said their $1.9 trillion \u201cAmerican Rescue Plan\u201d would save the economy. Instead, it looks like it\u2019s dragging it back down while inflation, a monster the U.S. Federal Reserve was thought to have tamed, is once again rearing its ugly head. The price of goods and services on which the American people rely are increasing, suddenly and sharply, as the impact of trillions in new spending during the pandemic comes home to roost.<\/p>\n

Now, according to the Washington Post<\/a> and other outlets, the Democrats are having trouble building support for their latest $4 trillion tax and spend program. Moreover, Democratic Congressional Campaign Committee Chairman Sean Patrick Maloney, D-N.Y., is now warning the White House its planned tax hike \u201ccould hurt vulnerable House Democrats up for re-election in 2022.\u201d<\/p>\n

It\u2019s an important message for Biden \u2013 who\u2019s apparently sending it back marked \u201cReturn to Sender.\u201d The president, it seems, remains intent on raising taxes on as many people, goods, and services as he can convince Congress to accept.<\/p>\n

Biden\u2019s initial proposal to take the corporate tax rate from 21 percent to 28 percent landed with such a resounding \u201cthud\u201d he was forced to offer up 25 percent as a compromise. Even so, that would still move the United States back into an uncompetitive position with the world\u2019s other industrialized economies. What is being omitted thus far from the discussion is that, when state-corporate levies are added in, the average U.S. combined national and subnational tax rises to 25.77 percent.<\/p>\n

At 25 percent, what Biden has now put on the table, the combined rate would be 29.5 percent, higher than what is levied by China and higher than the average rate for countries in the OECD.<\/p>\n

\"IMG_1870\" <\/a>
\nSource: Americans for Tax Reform<\/p>\n

Moreover, says Americans for Tax Reform, a non-partisan group opposed to tax increases, \u201cWorkers, consumers, and shareholders will bear the burden of an increased corporate tax rate. Such a hike will cause businesses to invest less in the United States and more overseas, resulting in fewer job opportunities and lower wages for American workers:\u201d<\/p>\n

According to ATR:<\/p>\n

\u2013 A Treasury Department study estimated that \u201ca country with a 1 percentage point lower tax rate than its competitors attracts 3 percent more capital.\u201d This is because raising the corporate rate makes the United States a less attractive place to invest profits. <\/p>\n

\u2013 A 2012 Harvard Business Review piece by Mihir A. Desai notes that raising the corporate tax lands \u201cstraight on the back\u201d of the American worker and will see a decline in real wages. <\/p>\n

\u2013 A 2012 paper at the University of Warwick and University of Oxford found that a $1 increase in the corporate tax reduces wages by 92 cents in the long term. This study was conducted by Wiji Arulampalam, Michael P. Devereux, and Giorgia Maffini and studied over 55,000 businesses located in nine European countries over the period 1996-2003. <\/p>\n

\u2013 Even the left-of-center Tax Policy Center estimates that 20 percent of the burden of the corporate income tax is borne by labor. <\/p>\n

Biden\u2019s insistence the corporate tax be raised, the cornerstone of his economic plan, will not create jobs, reduce debt, or bring increased revenues into the U.S. Treasury. It will however be a boon to almost every one of America\u2019s competitors in the global marketplace. <\/p>\n

Peter Roff is affiliated with several Washington, D.C. public policy organizations and is a former U.S. News and World Report contributing editor who appears regularly as a commentator on the One America News network. He can be reached by email at RoffColumns@GMAIL.com. Follow him on Twitter @PeterRoff.<\/em><\/p>\n

——————————————————————————————————————————————————
\nTell the President and our Representatives and Senators to say “NO” to higher taxes!<\/strong>
\nContact them by clicking on their names below:
\nNH Representatives Chris Pappas<\/em><\/a> (CD-1) and Anne Kuster<\/em><\/a> (CD-2).
\nNH Senators Jeanne Shaheen<\/em><\/a> and Maggie Hassan<\/em><\/a>.
\nPresident Joe Biden.<\/em><\/a> <\/p>\n

Posted by GST<\/em> Chairman Ray Chadwick<\/p>\n","protected":false},"excerpt":{"rendered":"

Biden Plans Will Wreck the U.S. Economy. This May 11, 2021 column by Peter Roff for American Action News is posted with his permission. 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