Joe Biden has a plan. His political plan is twofold. One: Promise to spend more money than anybody has in human history. Two: Soak the rich. That’s going to be his two-pronged economic plan, which is nothing new; we’ve seen that from every Democrat since Bill Clinton. The idea was to promise the world to voters, promise to spend money that does not exist, and do so by borrowing and taxing.
But the taxes never actually materialized because tax revenue is
not capable of sustaining the kind of spending we are doing now, unless you decide to really
tax the middle class. What Democrats want is the Norwegian standard of living without the kind of oil wealth provided by the Norwegian oil industry and without taxing the middle class in the way that Norway does.
The dirty secret of living in Scandinavia is that they tax everybody who makes about $60,000 a year at the same rate they tax those who make $500,000 a year. But America has an incredibly progressive tax system. People at the top of the income spectrum pay nearly all the taxes in the United States. That is not true in the social democracies of European countries, which start taxing people at exorbitant rates when they hit the lower-middle class.
But that’s something Democrats
don’t want to do because they understand that if they do so, it would be politically unpopular with many of the people who are going to vote for them.
So, instead, they decide to promise extraordinary levels of spending and try to force Republicans into the corner — because Republicans are going to say we can’t spend that much.
This is why Biden has now released his fiscal 2025 budget, which has no chance of passage. It’s a list of priorities for Biden. And what exactly are Biden’s priorities?
Taxing people a lot of money, cutting military spending in the face of the most chaotic world situation of the modern era, and maintaining the spending trajectory of Social Security and Medicare.
And somehow, he says this is going to lower the deficit.
How is it going to do that? He’s assuming he can radically increase taxes without affecting the economy, which of course, is not the way any of this works. Radically increasing taxes causes people to spend less money. That’s the way it tends to work. You can tax something to death. But you cannot tax something into prosperity.
He’s proposing a $7.3 trillion budget. This is patently insane on its face. First, even during the pandemic in 2021, we did not spend that much money. The United States government spent about $6.8 trillion. The same was true in 2020. That was during a full-scale pandemic when people were told to stay home and the federal government paid everyone’s bills for a year.
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