Democrats’ Reckless Tax-And-Spending Spree Would Be ‘Cradle-To-Grave’ Socialism

Even The New York Times Recognizes ‘Democrats’ Ambitious Social Policy Plan’ Would Be ‘The Most Significant Expansion’ Of Government ‘Since The War On Poverty In The 1960s’

“When congressional committees meet this week to begin formally drafting Democrats’ ambitious social policy plan, they will be undertaking the most significant expansion of the nation’s safety net since the war on poverty in the 1960s, devising legislation that would touch virtually every American’s life, from conception to aged infirmity…. [T]he proposed legislation would be so transformative — a cradle-to-grave reweaving of [Americans’ relationship to the government].” (“From Cradle to Grave, Democrats Move to Expand Social Safety Net,” The New York Times, 9/06/2021)

• “The Democrats’ $3.5 trillion reconciliation package is the biggest pile-on ever. The scale of this legislation is breathtaking …” (Punchbowl News AM, 9/08/2021)

• “The sheer scope of the effort … has some Democrats seeing similarities to Lyndon B. Johnson’s Great Society and Franklin D. Roosevelt’s New Deal.” (“Democrats Sorting Through Painful Sacrifices As Social Bill Enters Final Stretch,” The Washington Post, 9/12/2021)

• “Most Americans traditionally have seen the federal government’s involvement in their finances once a year, at tax time, when they claim a child credit, get a write-off for the truck they may have bought for their business, or receive a check for an earned income credit, to name a few. That would change profoundly if the social policy bill were enacted.” (“From Cradle to Grave, Democrats Move to Expand Social Safety Net,” The New York Times, 9/06/2021)

“To critics, the legislation represents a fundamental upending of American-style governance and a shift toward social democracy. With it, they worry, would come European-style endemic unemployment and depressed economic dynamism. ‘There’s always been difference of opinion on the role of government in people’s lives, and the United States has long taken a different approach than Western Europe,’ said N. Gregory Mankiw, a Harvard economist who was chairman of President George W. Bush’s Council of Economic Advisers. ‘This is clearly designed to take a big step toward the Western European model.’” (“From Cradle to Grave, Democrats Move to Expand Social Safety Net,” The New York Times, 9/06/2021)

• REP. BILL PASCRELL (D-NJ): “If that’s socialistic, count me in.” (“House Dems Start Assembling $3.5 Trillion Social Welfare Bill: ‘If That’s Socialistic, Count Me In,’” The Washington Times, 9/09/2021)

Left And Right, Observers Agree ‘The Democratic Bill Would Fundamentally Alter The Relationship Between Government And Individual Americans’

“[I]f it passes, [American Enterprise Institute economist Michael] Strain said the legislation could fundamentally change the relationship between the state and its citizens: ‘Its ambition is in its size.’” (“From Cradle to Grave, Democrats Move to Expand Social Safety Net,” The New York Times, 9/06/2021)

“‘If we get this passed, a decade from now, people are going to see many more touch points of government supporting them and their families,’ [Heather] Boushey [a member of the White House Council of Economic Advisers] said.” (“From Cradle to Grave, Democrats Move to Expand Social Safety Net,” The New York Times, 9/06/2021)

THE WALL STREET JOURNAL EDITORIAL BOARD: “Democratic leaders are moving to ram into law their $3.5 trillion plan for cradle-to-grave entitlements with the narrowest of majorities before Americans figure out what they’re doing. As Nancy Pelosi famously said about ObamaCare, Congress will pass the bill so people can find out what’s in it. The House Ways and Means and Education and Labor committees introduced the text of their sections of the $3.5 trillion-plus spending bill late Tuesday and Wednesday. On your mark, set, go for the 100-meter dash. Within 36 hours, the committees had begun mark-ups…. Now with merely 50 Democrats in the Senate and a five-member House majority, Democrats are planning to rush through the biggest tax and spending increase in half a century…. It’s important to understand how extraordinary this is. The Democratic bill would fundamentally alter the relationship between government and individual Americans. Entitlements, once created, will be all but impossible to repeal. Even if they start small, they will inexorably expand.” (Editorial, “Transforming America in 17 Days,” The Wall Street Journal, 9/09/2021)

THE WALL STREET JOURNAL EDITORIAL BOARD: “The progressive hits keep coming from the Biden Administration, and the latest is the $1.8 trillion American Families Plan introduced in broad strokes on Wednesday. It’s more accurate to call this the plan to make the middle class dependent on government from cradle to grave. The government will tell you sometime later, after you’re hooked to the state, how it will force you to pay for it. … But the cost, while staggering, isn’t the only or even the biggest problem. The destructive part is the way the plan seeks to insinuate government cash and the rules that go with it into all of the major decisions of family life. The goal is to expand the entitlement state to make Americans rely on government and the political class for everything they don’t already provide.” (Editorial, “Biden’s Cradle-to-Grave Government,” The Wall Street Journal, 4/28/2021)

• “So much for the ‘safety net’ to prevent poverty. This is now about mainlining benefits to middle-class families so they become addicted to government—and to the Democratic Party that has become the promoting agent of government. Democrats are enamored of this principle of ‘universality’ because it has worked to sustain the popularity of Social Security and Medicare, despite their failing finances. But those programs promise benefits in return for work across a lifetime. The Biden New Deal isn’t a deal at all. Most of its programs are free handouts on the model of the 1960s Great Society.” (Editorial, “Biden’s Cradle-to-Grave Government,” The Wall Street Journal, 4/28/2021)

THE WASHINGTON POST EDITORIAL BOARD: “House Democrats last week took a big step toward what could be a historic reshaping of the federal government, approving a $3.5 trillion reconciliation budget resolution that would permit Democrats to press through new social programs on party-line votes.” (Editorial, The Washington Post, 8/29/2021)

And Democrats Are Coupling This Massive Government Expansion With Historic Tax Increases That Still Wouldn’t Fully Pay For All The Spending

“Senior House Democrats are coalescing around a draft proposal that could raise as much as $2.9 trillion to pay for most of President Biden’s sweeping expansion of the social safety net by increasing taxes on the wealthiest corporations and individuals. The preliminary proposal, which circulated on and off Capitol Hill on Sunday, would raise the corporate tax rate to 26.5 percent for the richest businesses and impose an additional surtax on individuals who make more than $5 million.” (“House Democrats Outline Tax Increases For Wealthy Businesses And Individuals,” The New York Times, 9/12/2021)

• “The proposal would raise the corporate tax rate to 26.5 percent from 21 percent for businesses that report more than $5 million in income. … House Democrats are also considering an increase to the top marginal income tax rate to 39.6 percent from 37 percent for households that report taxable income over $450,000 and for unmarried individuals who report more than $400,000. For people who make more than $5 million, the proposal would impose a 3 percent surtax, which is expected to raise $127 billion. It also increases the top tax rate for capital gains — the proceeds from selling an asset like a boat or stocks — to 25 percent from 20 percent. ... The proposal would also provide $80 billion over the next 10 years for the Internal Revenue Service to beef up tax enforcement, a provision that budget scorekeepers estimate would raise $200 billion.” (“House Democrats Outline Tax Increases For Wealthy Businesses And Individuals,” The New York Times, 9/12/2021)

• “But the revenue provisions outlined in a document obtained by The New York Times… fall short of fully financing the entire package Democrats are cobbling together, despite promises by Mr. Biden and Democratic leaders that it would be fully paid for in order to assuage concerns from moderates in their caucus.” (“House Democrats Outline Tax Increases For Wealthy Businesses And Individuals,” The New York Times, 9/12/2021)

Democrats’ Tax Hikes Are Clearly Going To Hurt The Global Competitiveness Of American Businesses Abroad And Small Businesses At Home

NATIONAL ASSOCIATION OF MANUFACTURERS (NAM): “According to data from the Bureau of Economic Analysis, there has been a significant increase in IP coming to the U.S. since tax reform. … IP is intrinsically tied to innovation as it leads to the development of new products. Changing FDII [Foreign-Derived Intangible Income] as proposed by the discussion draft would hurt high-paying manufacturing jobs and innovation in the U.S.” (U.S. Senate Finance Committee Ranking Member, Press Release, 9/10/2021)

• NAM: “As the U.S. is the only country with a global minimum tax, increasing the GILTI [Global Intangible Low-Taxed Income] tax burden without the rest of the world adopting a comparable global minimum tax regime would only serve to disadvantage globally engaged manufacturers.” (U.S. Senate Finance Committee Ranking Member, Press Release, 9/10/2021)

AMERICANS FOR TAX REFORM (ATR): “Raising taxes on small businesses by 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.” (“Dems Propose $3 Trillion Tax Hike on Working Families and Small Businesses,” Americans for Tax Reform, 9/12/2021)