By Don Frost
Didn’t take long, did it? It never does. After all, President Biden is a Democrat and what do Democrats do when they perceive a problem? Throw money at it, of course.
Biden really isn’t to blame. As a Democrat, spend, tax, and borrow (in no particular order) is in his DNA. That’s why it took a mere 71 days as president to launch his first massive spending scheme: $2.3 trillion. He wants to use the money to re-engineer the nation’s infrastructure. This means cutting the use of fossil fuels (sounds like he’s pandering to the idiotic Green New Deal championed by the Socialist wing of his party), beef up American manufacturing, replace every lead water pipe in the country, repair 10,000 bridges, build roads, aid public transit, create 500,000 electric-vehicle charging stations, clean water, new schools, and expanding rural internet access, among many other components, according to Ron Klain, Biden’s chief of staff.
But that’s just the beginning. This plan will be followed by another soon-to-be announced $2 trillion package. According to the Associated Press, Biden will be “pushing a companion bill of roughly equal size [$2 trillion] for investment in childcare, family tax credits, and other domestic programs.”
How childcare, family tax credits, and other domestic programs qualify as “investments” is politician-speak for “give away.” In the real world, the word “investment” implies money spent in the expectation of a fair return. There is no such hope for the federal subsidizing of childcare and granting of tax credits.
This would be in addition to the childcare subsidies already in place as well as Temporary Assistance to Needy Families (TANF), Supplemental Security Income (SSI), Supplemental Nutrition Assistance Programs (SNAP, formerly food stamps), housing subsidies, and energy and utilities subsidies.
All of this spending was preceded by the $1.9 trillion stimulus package. But more about that later. But including that expense, Biden’s actual spending and projected spending totals $6.2 trillion. As usual, the time-warn Democratic playbook calls for promising only corporations and The Rich Tribe (those making more than $400,000 a year) will pay for everything. When did a federal spending program ever come in on or under budget? Never.
When Obamacare was introduced the estimated cost was $1 trillion. In June, 2012, the estimate was boosted to $1.5 trillion. In December, 2012, it went up again, this time to $1.6 trillion. That’s when the government stopped giving out cost estimates. No one knows how much the final cost will be.
So you’re middle class making less that $400,000 a year and you’re not a corporation. Don’t get too comfortable. You’re not getting off the hook that easily. First – carve this in granite and put it where you can see it every day – corporations do not pay taxes; they collect taxes. To a business – a giant multi-national corporation or the ma and pa store down the street – a tax is simply part of the cost of doing business. Ma and Pa and the corporation simply do what they’ve always done with any of their costs: Pass them on to their customers. That’s you.
Think you can avoid paying Gigantic Oil Corporation’s increased tax bill by selling your car and taking the bus? Forget that because Gigantic Oil will merely raise prices at the pump where buses fill up and the company will raise your fare to pay their tax. Think you can avoid paying the bus company’s tax bill by riding a bike? Nice try, but you’re not free yet. Everything in your grocery store gets there by truck and trucks burn oil. So the trucking company will raise their prices to pay their taxes. That cost will find its way into every box of Cheerios, every Hershey bar, every loaf of Wonder bread, and every Twinkie you buy.
Also, while grocery stores are raising their prices to meet rising delivery costs the corporations that make Cheerios, Hershey bars, Wonder bread, and Twinkies are boosting their prices, too, to cover their rising taxes.
The family sedan is on its last legs so you need a new car. Guess what: Biden’s tax on the Acme Motor Co. has been worked into the cost of that car.
All of this has a name: inflation.
There’s still one more problem Biden won’t admit to: The Rich Tribe isn’t big enough and there aren’t enough corporations to pay for his grandiose schemes. The big money is where it has always been: In that vast middle class of wage earners. That’s you. And sooner or later the middle class will pay, directly or indirectly, for Biden’s spending spree.
The insidious and cynical nature of the Democratic approach to spending and taxing is that it results in trickle down debt. It trickles down so slowly you can’t pin the debt on any one thing, not even when the government spends $6.2 trillion. So gas prices rise; grocery bills go up; a new car costs more than the new car you bought five years ago. So what? Prices are always going up. Is that the president’s fault? Yes. But how can you prove it? You can’t.
You can’t even pin your income tax bill on the president. Last year maybe you got an income tax refund of, say, $534. Next year maybe your refund will be only $497. The IRS works in ways so mysterious a line-item accounting (if you could get one) would be totally incomprehensible. So you’ll figure the difference will be your own fault. It could be that you had more deductions last year or maybe you had more overtime this year, putting you in a higher tax bracket, or maybe a combination of things.
Realistically, Biden’s pie-in-the-sky income projections from taxing The Rich Tribe and corporations wasn’t as much as he figured when he was trying to sell us on the magnificence of his plan. Only later will he admit privately, “Oops! Guess we’ll have to boost taxes on the middle class, too. But let’s not tell them. No one will notice.”
Somebody very wise once said, “No nation has ever spent its way to prosperity.”
Sir Winston Churchill saw it another, but related, way: “I contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.”
Churchill also had something to say about Biden’s stimulus checks: “There is nothing government can give you that it hasn’t taken from you in the first place.”
As Joe “Santa” Biden and his Democratic “elves” do their “dig me” victory dance over the latest stimulus checks being distributed to future voters all across America, Churchill’s words bear repeating.
Those $1,400 checks (for most people) are not “free money” as they’re being touted. The simple and obvious question: Where did the federal government get that $1.9 trillion they’re bribing voters with? The answer is quite simple: (Q) Where does government get any money? (A) From taxpayers; from you, from me, from our children. Those checks quite literally are a loan, not a gift, and like all loans they will have to be repaid.
There’s a name for those who believe that only The Rich Tribe and corporations will be stuck with the bill: They’re called Democrats. They along with every man, woman, and child in America will be saddled with the $6.2 trillion debt Biden plans to stick us with.
Who will be the major beneficiary of the president’s largesse? China. He’ll just borrow from that America-hating country.
Don Frost blogs at www.commonsense931.wordpress.com