As President Joe Biden promotes his several trillion dollars in proposed federal spending, Republicans and small businesses are raising the alarm, arguing the taxes needed to pay for those spending plans are a threat to the economy.
The House Ways and Means Committee met Thursday to discuss infrastructure development and in particular the impact of proposed tax increases to pay for it. Rep. Kevin Brady, R-Texas, the ranking member on the committee, argued that only 7% of Biden’s proposed infrastructure bill goes to infrastructure and that raising taxes would incentivize employers to take jobs overseas.
“As bad as the wasteful spending is, worse yet, it’s poisoned with crippling tax increases that sabotage America’s jobs recovery, hurts working families and Main Street businesses, and drives U.S. jobs overseas,” Brady said. “We cannot fund infrastructure on the backs of American workers.”
As the U.S. climbs out of a once-in-a-century pandemic, rising prices have led to increasing worry that rapid inflation could be just over the horizon.
Americans have already witnessed higher prices in the past few months, with everything from gasoline to lumber to basic home items jumping in cost. The increases, partially fueled by non-existent interest rates and record government spending, could lead to inflation that the U.S. has not seen in decades, experts say.
“In the short term, consumers can expect to see rising prices across the board,” Henry Olsen, a senior fellow at the Ethics and Public Policy Center and a columnist at The Washington Post, told the Daily Caller News Foundation. “I expect in the next few months people will be getting sticker shocked in virtually all aspects of their life.”
The federal budget deficit hit an all-time high of $3.1 trillion in the 2020 budget year, more than double the previous record, as the coronavirus pandemic shrank revenues and sent spending soaring.
The Trump administration reported Friday that the deficit for the budget year that ended on Sept. 30 was three times the size of last year’s deficit of $984 billion. It was also $2 trillion higher than the administration had estimated in February, before the pandemic hit.
The U.S. budget deficit hit an all-time high of $3 trillion for the first 11 months of this budget year, the Treasury Department said Friday.
The ocean of red ink is a product of the government’s massive spending to try to cushion the impact of a coronavirus-fueled recession that has cost millions of jobs.
The U.S. national debt now exceeds the size of America’s total gross domestic product and the milestone may have been met as early as June, according to a Friday New York Times report.
America’s federal debt stands at around $26.6 trillion — an approximate $7 trillion increase since 2016, according to fiscal data from the Treasury Department. Total U.S. gross domestic product (GDP) was just over $19.4 trillion at the end of June, according to a July 30 release from the U.S. Bureau of Economic Analysis.