The Biden administration is on a roll breaking record after record. First, the largest number of migrants attempting to illegally enter the U.S. on the Southern border in over 15 years, and now the largest monthly deficit. “The U.S. government’s budget deficit ballooned to $660 billion in March, marking a 454% increase compared to last year and the third-largest monthly deficit ever recorded” reports Biz Pac Review.
In March, with a revenue of only $268 billion, the federal government spent $927 billion, said Treasury Department officials. “The U.S. deficit for the first six months of fiscal year 2021, which began in October, reached a massive $1.7 trillion.”
Biz Pac Review reports the deficit is largely caused by the Democrats’ $1.9 trillion coronavirus stimulus package signed into law in March. The Bipartisan Policy Center released a statement Monday saying, “unemployment insurance, refundable tax credits, and the Small Business Administration’s Paycheck Protection Program accounted for most of the increase – both from March to March and from last fiscal year to this one.”
The deficit is on track to surpass the $3.1 trillion annual deficit record set last year. The third-biggest annual deficit occurred during the Great Recession in 2009 when U.S. spending surpassed revenue by $1.4 trillion. In an interview with CBS News on Sunday, Federal Reserve Chair Jerome Powell stated the federal debt is currently on an “unsustainable” path.
President Joe Biden has focused on revamping the nation’s infrastructure, causing severe disagreement along party lines. Biden plans on passing his $2 trillion infrastructure plan claiming it will create millions of new jobs, arguing that increasing the corporate tax rate from 21% to 28% will pay for the expensive plan.
Dem’s $3 Trillion Tax Hike Hurts Working Families and Small Businesses
The Democrats’ almost $3 trillion tax increase proposal would deeply impact small businesses and working families. “This is the largest tax increase since 1968 compared to the size of the economy and the largest tax increase ever in nominal dollars” reports the Americans for Tax Reform website.
“Raising taxes on working families by increasing the federal corporate income tax rate from 21 percent to 26.5 percent” will be passed along to working families in the form of “higher prices, fewer jobs, and lower wages.”
As a result, the U.S. will have a combined state-federal rate of 30.9 percent. That rate is “higher than our foreign competitors including China, which has a 25 percent corporate tax rate, and Europe which has an average rate of 21.7 percent. The developed world average (OECD) is 23.5%” reports the website.
The Tax Foundation’s Stephen Entin states a tremendous 70 percent of corporate income tax is a burden to “labor (or workers)” in the form of wages and employment. In a 2020 study, the National Bureau of Economic Research found that 31 percent of the burden falls on consumers.
“A corporate tax increase will threaten the life savings of families by reducing the value of publicly traded stocks in brokerage accounts or in 401(k)s” as well as “higher utility bills as the country tries to recover from the pandemic.”
Small businesses will be impacted because “raising the top income tax rate to 39.6 percent, limiting the 20 percent small business deduction, expanding the Obamacare net investment income tax, limiting the ability of passthroughs to deduct excess business losses, and raising the corporate tax rate.”
The painful plan also increases the capital gains tax rate to 28.8 percent, adds a 16.5 percent global minimum tax, and increases the death tax by cutting the exemption level in half. Not to mention, $80 billion in new IRS funding would allow for the hiring of 87,000 new agents. “This would allow the IRS to audit and harass small businesses and American families for an additional $787 billion. It would hire enough new IRS agents to fill Nationals Park twice.”
Liberal Utopia Inching Closer: Social Security Expected to Run Out of Money Sooner Than Expected
If the novel coronavirus did nothing else, it gave Liberals a blanketed excuse for their horrendous policies. According to an annual government report, the Social Security trust fund most Americans rely on for retirement will be out of money in as soon as 12 years.
CNBC reports the 12-year prediction is “one year sooner than expected” and “the outlooks, aggravated by the Covid pandemic, also threatens to shrink retirement payments and increase health-care costs for older Americans.” Essentially, everything Democrats were already accomplishing, sans their lucky COVID-19 excuse.
The “financial outlook for Social Security and Medicare, two of the nation’s preeminent safety net programs, has deteriorated over the past year as Covid hastened retirements and caused a contraction in the size of the U.S. labor force” reports CNBC. Again, the result of Democratic policies and horrific government overreach under the guise of saving the world from the coronavirus.
The Treasury Department oversees two Social Security funds: The Old-Age and Survivors Insurance and the Disability Insurance Trust Funds. Those programs are designed to provide a source of income respectively to former workers who have retired at the end of their careers or to those who cannot work due to a disability.
Officials said that the Old-Age and Survivors trust fund is now able to pay scheduled benefits until 2033, one year earlier than reported last year. The Disability Insurance fund is estimated to be adequately funded through 2057, eight years earlier than in the report published in 2020.
Though the two funds are separate under law, the Treasury Department said the hypothetical combined funds would be able to pay scheduled benefits on a timely basis until 2034.
Senior administration officials said in a press briefing Tuesday afternoon that a spike in deaths among retirement-age Americans in 2020 helped keep the programs’ costs lower than projected. They added that the ultimate, long-term impact of the coronavirus is less clear as costs and revenues return to their extended forecasts.
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