American writers recently commented that the Biden administration’s big tax hike will lead to the country’s downfall.
American author John Calvin Thomas wrote on Thursday (March 18) that now that the Democrats control the House and Senate of Congress and the White House, they can spend and raise taxes in a big way. And history shows that heavy debt and high taxes lead to the country’s downfall.
Thomas’ article is translated below.
The Wall Street Journal said on Monday (March 15) in a front-page headline, “Biden is considering how to pay for his agenda.” Who buys what they know they can’t afford and then worries about how they will pay for it later? Only the administration does.
Less than two months into the White House, President Biden and a Democratic-majority Congress have written record checks and not had enough money to pay for them. That may be about to change, however.
Bloomberg reports that the president wants to raise personal income and corporate taxes (and expand the estate tax) to pay for another round of infrastructure, programs and policies that liberals fancy. For decades the Democrats’ mantra has been that the rich must pay their “fair share” to justify tax increases. But they never tell us what is fair, or the amount they want to forcibly confiscate. It’s always a moving target.
The truth is, the federal government doesn’t lack money, it lacks self-control in spending. Some Democrats are even talking about reinstating “earmarks,” additional legislation that Republicans voted to ban when they had a majority in the House. Democrats believe they can reinstate it to induce Republican lawmakers to support their spending plan.
No longer constrained by Republicans or the president in both houses of Congress, Democrats have enough votes to pass the legislation, at least until the 2022 elections, without caring about voter anger. The economic impact of Trump‘s tax cuts on businesses that later created jobs and employed workers was huge, and none of it mattered to Democrats. Democrats have clung to the false notion that more spending and higher taxes will fix everything. If they could, wouldn’t there be no problem now?
Today’s Democratic leftists believe that by spending more, they can make more people dependent on government and thus strengthen the careers of politicians. For years, Democrats have claimed in various ads and fundraising appeals that electing Republicans would lead to the elimination of Social Security benefits and other government benefits. They never talk about personal responsibility, freedom or the proper role of government. Oh, we need to set term limits, but that means having to get the votes of career politicians who will never support them.
Democrats will probably start raising corporate taxes because they have successfully portrayed corporations as evil and greedy. The trouble is, these companies hire people and the employees pay taxes and contribute to economic growth. If companies have to pay more taxes, then they are likely to hire fewer people and fire their current employees. No Time is a good time to raise taxes, and it is immoral to raise taxes when people are still struggling with the consequences of a government shutdown of society.
On raising corporate tax rates, the Washington Post said, “Some tax experts, business groups and Republican lawmakers say raising tax rates could hurt U.S. competitiveness. Countries around the world have joined the United States in recent and past decades in cutting taxes to attract corporate investment …… The average tax rate across countries is 24 percent. Just last year, nine countries, including France, lowered their corporate tax rates.”
The federal tax rate for corporations is now 21 percent, that was lowered from 35 percent when Trump was president. When we get out of the plague pandemic, it should stay at the 21 percent tax rate and Biden should not touch the money we make.
What is needed is a top-down review of all government spending by a non-partisan group to eliminate waste and reform outdated programs, or leave it to the private sector to do a better job. Don’t expect Democrats to do this. It’s not in their nature. When it comes to spending money, Republicans don’t have clean hands either. Voters who do not rely on government must demand more fiscal responsibility. The past of many countries has proven that heavy debt and high taxes lead to the downfall of the country.
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