During a speech before a joint session of Congress, President Joe Biden announced several big-ticket programs. And that’s when POTUS dropped some very big numbers on the country.
One of his proposals is the “American Families Plan,” which is designed to provide affordable child care, and give tax breaks to low- and middle-income families.
It sounds good on the surface — but a recent study shows just how much this will cost America.
Biden’s plan will “expand the tax credit for every child in a family,” and parents who aren’t wealthy won’t have to pay “more than 7 percent of their income for high-quality care for children up to the age of five.”
Additionally, parents with two kids will receive a tax credit of up to $7,200.
Now, in order to pay for all this, the President would jack taxes on the wealthy and investors, and raise tax enforcement at the IRS. In fact, the IRS would get $80 billion to boost their auditing capabilities.
But this all comes at a heavy price (from Breitbart):
According to a study from the National Association of Manufacturers, President Joe Biden’s tax hike plan would cost the American economy one million lost jobs in the first two years.
The study found that the U.S. would lose one million jobs in the first two years, GDP would be $117 billion lower by 2023, and ordinary capital or investments in equipment and structures would be $80 billion less in 2023.
In other words, we could seriously injure our economy in less than 2 years.
National Association of Manufacturers President and CEO Jay Timmons added that tax hikes on corporations and manufacturers will only give other countries a “clear advantage.”
As a result, “far fewer jobs” will be created in America. So, we could end up with a flailing economy and infrastructure in a very short span of time.
But this appears to be par for the course for the Biden administration.
Spending is on track to hit all-time highs: if you combine the President’s new proposals with the $1.9 trillion relief package, Biden would wind up spending $5.4 trillion in just his first year.
Apparently, the Democrat response to all of America’s ills hasn’t changed: just raise taxes and spend, spend, spend.
While leftist lawmakers will argue the benefits outweigh the risk and potential negatives, many economists, financial experts, and Republicans aren’t so sure.
- President Joe Biden’s “American Families Plan” is designed to assist low- and middle-income families.
- A recent study says it could cost America dearly: we might lose 1 million jobs in the first 2 years, and GDP would be $117B lower.
- Manufacturers continue to call out Biden’s proposals, as they argue we’ll continue to lose jobs overseas.