Thursday, July 22, 2021

For Democrats, Money Is Just a Number: Why stop at $3.5 trillion? Why not $5 trillion or $10 trillion?; American Taxpayers, Not Foreign Investors, are on the Hook for Dems’ Trillions in New Spending

Jonathan Ernst/Reuters
For Democrats, Money Is Just a Number:
Why stop at $3.5 trillion? Why not $5 trillion or $10 trillion?
The Democrats just unveiled a new $3.5 trillion spending package that, when combined with the $600 billion bipartisan proposal tentatively in place, adds up to a lot of money. However, the American people have not been told in specific terms why we need the largest spending package in American history. This new “deal” is part of a suspicious trend with Democratic policies, which seem to focus on getting the maximum amount that can pass through Congress.
We don’t know how or why Senate Democrats arrived at $3.5 trillion as the ideal amount of government spending. We can take an educated guess, though. The deal is less than many progressives had hoped for. Bernie Sanders, for example, wanted a $6 trillion infrastructure and health-care package, but that was considered politically impossible because any spending bill would need to pass with support from moderate members. As Axios reports:
The roughly $3.5 trillion could get shaved down further once the full Senate — including centrists like Sens. Joe Manchin (D- W.Va.), Kyrsten Sinema (D-Ariz.) and Jon Tester (D-Mont.) — extract their own demands.
Importantly, Senate Democrats have not come out and said that Bernie’s plan is wrong and that $3.5 trillion would be better for the country. Instead, Democrats on the Senate Budget Committee, led by Senate majority leader Chuck Schumer, have come to an agreement to borrow and spend as much money as politically possible. Politico reported on how the bill came to be: --->READ MORE HERE
Associated Press
American taxpayers, not foreign investors, are on the hook for Dems’ trillions in new spending:
Democrats’ plan for $3.5 trillion in new spending on social programs, the biggest package ever proposed, would eat up nearly all of the government’s annual tax collections.
Funding the spending plan would require President Biden’s proposed tax increases or more federal borrowing — or both.
The federal government collected $3.8 trillion in tax revenue in fiscal 2021 to pay for defense, health care, Social Security, veterans’ services, education and a host of other annual expenses.
Mr. Biden has proposed raising taxes by about $2.5 trillion over 15 years to pay for his infrastructure and safety net plans. The administration says beefed-up tax collection would add $700 billion and savings elsewhere in the budget would cover the rest of his new spending.
Democrats also are projecting that a stronger economy will boost tax revenue. Conservatives say such budget forecasting is optimistic given Mr. Biden’s proposed tax hikes. --->READ MORE HERE

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