Joe Biden’s Proposed Budget Would Hike Spending, Raise Taxes, and Further Inflate the National Debt – By Eric Boehm (Reason) / Sept 15 2020
Biden is proposing about $3 trillion in new taxes, mostly on the rich, to pay for up to $11 trillion in new spending. That’s a recipe for even bigger budget deficits.
The national debt has reached levels not seen since the end of World War II, but Democratic presidential nominee Joe Biden is calling for a combination of spending increases and tax hikes that will require trillions of dollars of additional borrowing in the next 10 years.
Biden is calling for more than $3 trillion in new taxes that would be imposed primarily on corporations and the wealthiest Americans. But two recent analyses of Biden’s spending plans agree that his proposals would not come close to paying for themselves over 10 years. If enacted, Biden’s plans would push federal spending to higher highs while also adding to the national debt—which is already on pace to eclipse the size of the entire American economy next year.
The Penn Wharton Budget Model, a nonpartisan organization within the University of Pennsylvania’s business school, crunched the numbers and concluded that Biden’s proposed tax increases would cost Americans about $3.4 trillion over 10 years. To get there, Biden would repeal some of President Donald Trump’s tax cuts for high earners, raise income taxes on the very highest earners, tax capital gains at the same rate as other income, raise the corporate tax rate, and institute a series of changes to the payroll taxes that fund mandatory spending on entitlements like Social Security.