If Biden wants to fund his spending proposals, he can't just tax the rich.
The progressive goal of moving toward a European-style social democracy is colliding with America’s anti-tax reality.
President Biden’s American Jobs Plan and American Families Plan proposed a total of $3.3 trillion in new taxes over the next decade to partially finance $4.5 trillion in new benefits. In response, the Senate has passed a $550 billion infrastructure bill with few legitimate pay-fors, and Congress has pledged a $3.5 trillion reconciliation bill that would add up to $1.75 trillion in new deficits.
Yet the president and Congress are hitting the mathematical, economic, and political limits of the progressives’ long-standing promise to finance European spending levels on the backs of the very rich.
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