The President wants to boost handouts to families and raise taxes. It’s a progressive push that’s all take and no give.
More Handouts and Higher Taxes
President Biden’s Budget Proposal would would boost federal spending to $7.3 trillion next fiscal year up from $6.9 billion paid for by higher taxes.
President Biden’s proposed budget would boost federal spending to $7.3 trillion next fiscal year and raise taxes on wealthy people and large corporations, in an attempt to cut the deficit while also lowering the costs of prescription drugs, child care and housing.
The budget leaves some blank spaces. It lists principles for shoring up Social Security, without specifying a plan. It calls for paying for extensions of tax cuts for most households after 2025 but doesn’t detail how that would be paid for. And it calls for restoring the expanded child tax credit, but only temporarily, lumping that into the broader 2025 tax debate.
Under his plan, families making less than $200,000 a year would be guaranteed subsidized child care, with the lowest income families paying nothing. The president proposed building or preserving more than two million housing units, and a series of tax credits to ease the high cost of purchasing a home. He calls for spending $12 billion to come up with strategies to reduce the cost of college, while expanding Pell Grants and offering tuition-free community college. And he again outlined a federal paid family and medical leave program.
Biden’s budget would ensure the solvency of a Medicare hospital-insurance trust fund by increasing taxes on the wages, investment gains and self-employment income of people earning more than $400,000 a year.
The president’s proposal would significantly expand the number of drugs subject to price negotiation in Medicare, a federal health program for seniors and the disabled, to 50 a year from a maximum of 20. It would extend a $2,000 cap on out-of-pocket prescription drugs in Medicare, and a $35 cost-sharing cap for a month of the diabetes drug insulin, to the commercial market.
The budget doesn’t include a detailed plan for stabilizing Social Security, which like Medicare, faces a shortfall in the coming decade. Instead, the president proposes working with Congress to strengthen the program, prevent cuts and ensure its solvency by increasing unspecified taxes on wealthy Americans.
Many of the tax cuts enacted in 2017 by Republicans expire after 2025. Like last year, Biden’s budget says that the president supports extending those tax cuts for households making under $400,000 and paying for those extensions to avoid increasing budget deficits. But he doesn’t lay out a specific plan for doing so,
Biden also calls for restoring the expanded child tax credit that was in effect during 2021—but only temporarily through 2025.
Sleight of Hand Gimmicks
The reason for “temporary” proposals is that under CBO rules temporary proposals do not add to the deficit.
Biden accuses Trump of having no plan for addressing Social Security but he does not have one either.
In addition, Biden tells a flat out lie on Trump cutting Social Security when in fact the Trump plan and the Biden plan are identical. Both maintain they will not touch Social Security. That means automatic reductions in payouts starting as soon as 2032.
All Take and No Give
Biden continues the progressive push that may as well been written by Elizabeth Warren and perhaps was. Biden again proposed a wealth tax on unrealized profits.
Warren has been advocating that for years. However, the ideas appears to be blatantly unconstitutional. It’s foolish regardless.
Highly Inflationary Proposals
Expanded child tax credits, tax credit to purchase a home, free college tuition, and free child care are all highly inflationary.
Child tax credits encourage people not to work. So does Medicaid expansion.
Biden’s Misguided Woke Apology
An illegal immigrant charged with crimes in NY and GA was released, then killed nursing student Laken Riley.
Biden apologized for using the term illegal in his SOTU address when discussing the murder.
Biden won’t treat any of these people, even murders and rapists, with disrespect.
Woke apologies to murderers, or perceived apologies to murderers, can only backfire. This was Biden’s hyena moment. Expect more of them.
The budget is a nonstarter and Biden knows that. But he cannot help himself. Everything he says and does is a direct appeal to the radical Left.
Yet, here were are. Both Biden and Trump are openly ignoring the voters who will decide the election.
Biggest Lie in Campaign History
Biden promised to be a healer and a moderate. It was the biggest lie in campaign history.
On the other side of the ledger, it’s counterproductive for Trump to continue with name calling. Labeling Nikki Haley “bird brain” and California Governor Gavin Newsom “New Scum” cannot possibly win a single vote!
Trump could easily win this in a blowout if he would just stop personal attacks.
Polls Show Biden is Losing Black, Hispanic, and Young Voters to Trump
One of them will succeed in their competitive effort to offend the most independents, moderates, and young voters. Right now, my bet is Biden will succeed in doing that.
In turn, this means I expect Trump to win the election. But this is a current snapshot. There’s still 8 months to go.
The real wildcard may not be the criminal trials but the economy. There’s a good chance of recession by the election just as everyone is cheering a soft landing.
Hoot of the Day “The Fed Has Reached the Soft Landing Runway”
The uphill battle for Biden is very steep. He has done too many things wrong.
People may not like Trump, but too many people realize they were economically better off before this massive inflation.
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