Biden Claims His Massive Tax Increase Will Make Economy 'Better'
'Raising taxes, the studies show, will not slow the economy at all'
Democrat Joe Biden has claimed his massive tax increase, which has been condemned on both sides of the aisle, would help the economy and not damage it.
Biden's multitrillion-dollar infrastructure plan, which former Speaker of the House Newt Gingrich said was “a tax increase bill masquerading as an infrastructure bill," raises taxes in the middle of an economic freefall.
“Raising taxes, the studies show, will not slow the economy at all,” Mr. Biden said at the White House.
“It will make the economy function better.”
Biden noted a government report showing a 916,000 job increase in March and that the unemployment rate fell from 6.2% to 6%.
Biden credited his part in the $1.9 trillion relief package, which provided $1,400 checks to most families.
Biden claimed the employment report meant his administration had created more jobs in its first two months than any administration in history.
“But we still have a long way to go,” Mr. Biden said.
He then claimed his new proposal would create 19 million jobs.
But Senate Minority Leader Mitch McConnell and other Republicans said such tax hikes would hurt the economy and send jobs overseas.
“If the Republicans argue that we don’t need infrastructure … I think Republican voters are going to have a lot to say about it.”
"What do you think would happen if they found out all the lead pipes were up in the Capitol every time we turn on the water?”
Rep. Kevin Brady (R-TX) blasted Biden's plans because the United States is still in an economic crisis.
“No president has ever raised business taxes to recover from an economic crisis. This couldn’t come at a worse time,” he said.
Ann Wagner (R-MO) agreed:
“Why, as this country begins to reopen and recover economically, would the Biden administration be proposing tax policy which would, in the end, hurt the American family and millions of struggling small businesses?”
Experts warned that Biden's tax hike would cost tens of thousands of American jobs.
The Tax Foundation analyzed to determine what would happen if the rate increased from 21 percent to 28 percent and a 15 percent minimum tax “on the book income” for big companies was introduced.
The Tax Foundation estimates that 159,000 jobs would be lost due to the hike in the long term, along with wages and economic output taking a slight hit.