(Worthy News) – The Biden administration has floated another bloated budget, one that will put the US national debt at $43.6 trillion by 2033, assuming its optimistic growth and interest-rate projections pan out and the Ukraine war ends. If this budget passes, the debt will hit 110 percent of GDP, federal spending will exceed 25 percent of GDP, and federal revenue will top 20 percent of GDP, with the balance borrowed.
The details induce queasiness. Some $5 trillion in tax increases are slated, including $119 billion by reducing the so-called “tax gap,” code for increased IRS scrutiny of small businesses. Some $3 trillion is to come from increasing the stock-buyback tax from 1 to 4 percent, increasing other corporate taxes, raising the corporate income tax from 21 to 28 percent, and reforming international tax rules, as if large corporations will just pay up and not move out.
Individuals will pay more, too, with the top income tax rate increasing from 37 to 39.6 percent, with capital gains and estate taxes increasing, too. A 25 percent tax on the “unrealized income” of billionaires is projected to raise $437 billion, though its constitutionality appears dubious. The plan also relies on bracket creep – by raising tax brackets more slowly than inflation, nominal taxes for the middle and lower classes will increase, even if their inflation-adjusted wages continue to stagnate. [ Source: CNS News (Read More…) ]