The President wants to boost handouts to families and raise taxes. It’s a progressive push that’s all take and no give. 
More Handouts and Higher Taxes
President Biden’s Budget Proposal would would boost federal spending to $7.3 trillion next fiscal year up from $6.9 billion paid for by higher taxes.
President Biden’s proposed budget would boost federal spending to $7.3 trillion next fiscal year and raise taxes on wealthy people and large corporations, in an attempt to cut the deficit while also lowering the costs of prescription drugs, child care and housing.
The budget leaves some blank spaces. It lists principles for shoring up Social Security, without specifying a plan. It calls for paying for extensions of tax cuts for most households after 2025 but doesn’t detail how that would be paid for. And it calls for restoring the expanded child tax credit, but only temporarily, lumping that into the broader 2025 tax debate.
Under his plan, families making less than $200,000 a year would be guaranteed subsidized child care, with the lowest income families paying nothing. The president proposed building or preserving more than two million housing units, and a series of tax credits to ease the high cost of purchasing a home. He calls for spending $12 billion to come up with strategies to reduce the cost of college, while expanding Pell Grants and offering tuition-free community college. And he again outlined a federal paid family and medical leave program.
Biden’s budget would ensure the solvency of a Medicare hospital-insurance trust fund by increasing taxes on the wages, investment gains and self-employment income of people earning more than $400,000 a year.
The president’s proposal would significantly expand the number of drugs subject to price negotiation in Medicare, a federal health program for seniors and the disabled, to 50 a year from a maximum of 20. It would extend a $2,000 cap on out-of-pocket prescription drugs in Medicare, and a $35 cost-sharing cap for a month of the diabetes drug insulin, to the commercial market.
The budget doesn’t include a detailed plan for stabilizing Social Security, which like Medicare, faces a shortfall in the coming decade. Instead, the president proposes working with Congress to strengthen the program, prevent cuts and ensure its solvency by increasing unspecified taxes on wealthy Americans.
Many of the tax cuts enacted in 2017 by Republicans expire after 2025. Like last year, Biden’s budget says that the president supports extending those tax cuts for households making under $400,000 and paying for those extensions to avoid increasing budget deficits. But he doesn’t lay out a specific plan for doing so,
Biden also calls for restoring the expanded child tax credit that was in effect during 2021—but only temporarily through 2025.
Sleight of Hand Gimmicks
The reason for “temporary” proposals is that under CBO rules temporary proposals do not add to the deficit.
Biden accuses Trump of having no plan for addressing Social Security but he does not have one either.
In addition, Biden tells a flat out lie on Trump cutting Social Security when in fact the Trump plan and the Biden plan are identical. Both maintain they will not touch Social Security. That means automatic reductions in payouts starting as soon as 2032.
All Take and No Give
Biden continues the progressive push that may as well been written by Elizabeth Warren and perhaps was. Biden again proposed a wealth tax on unrealized profits.
Warren has been advocating that for years. However, the ideas appears to be blatantly unconstitutional. It’s foolish regardless.
Highly Inflationary Proposals
Expanded child tax credits, tax credit to purchase a home, free college tuition, and free child care are all highly inflationary.
Child tax credits encourage people not to work. So does Medicaid expansion.
Biden’s Misguided Woke Apology
An illegal immigrant charged with crimes in NY and GA was released, then killed nursing student Laken Riley.
Biden apologized for using the term illegal in his SOTU address when discussing the murder.
Biden won’t treat any of these people, even murders and rapists, with disrespect.
For discussion, please see Biden’s Misguided Woke Apology to Illegal Immigrants Will Backfire
Woke apologies to murderers, or perceived apologies to murderers, can only backfire. This was Biden’s hyena moment. Expect more of them.
The budget is a nonstarter and Biden knows that. But he cannot help himself. Everything he says and does is a direct appeal to the radical Left.
Yet, here were are. Both Biden and Trump are openly ignoring the voters who will decide the election.
Biggest Lie in Campaign History
Biden promised to be a healer and a moderate. It was the biggest lie in campaign history.
On the other side of the ledger, it’s counterproductive for Trump to continue with name calling. Labeling Nikki Haley “bird brain” and California Governor Gavin Newsom “New Scum” cannot possibly win a single vote!
Trump could easily win this in a blowout if he would just stop personal attacks.
Polls Show Biden is Losing Black, Hispanic, and Young Voters to Trump
One of them will succeed in their competitive effort to offend the most independents, moderates, and young voters. Right now, my bet is Biden will succeed in doing that.
In turn, this means I expect Trump to win the election. But this is a current snapshot. There’s still 8 months to go.
For discussion, please see Polls Show Biden is Losing Black, Hispanic, and Young Voters to Trump
The real wildcard may not be the criminal trials but the economy. There’s a good chance of recession by the election just as everyone is cheering a soft landing.
Hoot of the Day “The Fed Has Reached the Soft Landing Runway”
For my rebuttal to the soft landing thesis, please see Hoot of the Day “The Fed Has Reached the Soft Landing Runway”
The uphill battle for Biden is very steep. He has done too many things wrong.
People may not like Trump, but too many people realize they were economically better off before this massive inflation.
Trump is correct Newson is scum.
ENDLESS MONEY SUPPLY FOR RADICAL LEFT WINGERS DESTROYING AMERICA
so you bomb the global south and get more immigrants you can’t stop to your shores because many whites who they themselves are discriminated against will protect immigrants from being reported because we live in a global world
And? Trump will add more debt than Biden just on war and corporate tax breaks for the rich which will skyrocket our debt. Socialize the costs and privatize the profits form the few that will use the leverage of their money and connections to make more money.
so are we getting a summer surprise(don’t think so to much time left before election)
or do we get sept surprise were diaper joey takes hike or gets planted 6′ under
with michelle magically coming in and putting hillary as co-captain
The “
biggest liein campaign history” pales in comparison to THE BIG LIE.Trump claimed he could act presidential…
If even remotely true, he would have been re-elected.
Instead, Trump made (and makes) Biden look like a reasonable alternative.
I think not, Biden is not reasonable or competent.
neither is frump
“Trump could easily win this in a blowout if he would just stop personal attacks.”
Both of the media’s preferred candidates have had a term (or most of one) in the country’s throne room. Neither is truthful, neither is intellectual (or even pseudo-intellectual), both will denigrate at will, both have been shown to advocate unbridled deficit spending, neither inspire confidence, et cetera. Changing 45’s on-air persona is lipstick on a pig, metaphorically speaking of course.
If 45 cared about winning and leading, it would have been simple enough to fulfill more campaign rhetoric from 2016-20 and get a second term. The people that filled out executive and admin positions during that time were not going to change anything in D.C. so why is the U.S. on the precipice of a third round of nonsense? It’s all entertainment. “The Truman Show” is the only explaination for what’s going on.
Looks like Brandon fckn desperate …
The US is building a naval autostrada to Jasa. Muhamed Dahlan, Fatah, ousted by Abu Mazen, is building a pier north of Khan Unis, from building debris, financed by Qatar. Muhamed Dahlan will be responsible for food delivery. The first shipment already sailed from Cyprus.
On the way back each ship will sail with 30K/50K refugees to Cyprus, Spain and Turkey.
Great, just not here. The no vacancy sign is on.
so funny. millions of Palestinians in Europe a d the USA . and millions more in Israel and Jordan and so. eventually Israel will fall b cause of lost narrative.
why do Jews start all the wars and cause trouble in every country they go in?
If a person does not by now understand there is a severe problem in Washington DC then your head is truly stuck in sand.
For me it was when Nancy Pelosi got installed as speaker of House. There was a five alarm fire call in my head that went off. As consequence I got seriously into prepping and decentralization to protect my family from whatever was to come in subsequent years.
Since the DC Cabal got away with a Bimbo as speaker, well what was next for them?
Installing Mr. Potato head into Oval office.
John Spencer (urban warfare chair) and Dr Jacob Stoil (history chair) West Point : if Biden bends Bibi will and prevent him from taking out Rafa, Sinwar can sleep well in the tunnels and refuse to negotiate. Sinwar will rise from the ashes as a winner. He will takeover Jasa, run the west bank and sandwich Israel.
On Mon. Bibi eliminated Hamas defense minister Muhamed Issa..
Gravity with Germany and Japan dragged the bond market down.
It’s for continuing to get the vote to maintain the military complex with wars.
Go Brendon!
Who ever he is today.
Photoshop changes images weekly.
And this is why the Fed Funds rate can not maintain 5%. Impossible debt servicing.
A 0% Fed Funds rate forever is the only way Fiat slows its eventuall self destruction.
Ultimately the Fed Funds rate will hit 0%. But this time, there will be few/no buyers of treasuries outside of the moronic Fed.
The game is over. The world is on to us.
The GI bill made it possible for the bottom 10 percent in wealth to go to college based on merit. Fifty years later, we are unhappy with the results. Okay, we have tried meritocrocy for 70 years and we ended up with too many white guys running things. Time for a change.
Reverse racism is still racism.
We’ve tried much heavier government involvement in the economy and daily life for 70 years and don’t like the results. What is more important than skin tone is what people actually did.
A larger government role has been a dumpster fire as you rightly point out.
They qualified under the bill because they survived being cannon fodder, that isn’t merit-based any more than the quantity of melanin in one’s epidermis.
Well said but I would add that the GI’s experience in WWII produced a close network of white men, branded together in combat, that ruled the world for a time. Time for a change.
The change we need is term limits for starters, then limit Congress critters in DC to a maximum of 90 days per year, then they should reside in their districts and mingle with the little people and get some perspective on what we the people deal with daily.
If not white guys then what color? Sounds a bit bigoted.
In order to fix the debt brutal political hits would have to be taken to the face. Nobody is going to take those hits. Not until the dollar breaks. That process could take a decade or more. By that time most in Congress will be long long gone.
They won’t be anywhere near the problem and I do not blame them at all. End of the day the people voted for paper ballots, no audits, free college, free whatever. American citizens did it to themselves.
That’s democracy. Vote whoever offer more freebies, or whoever put their fault on others, whoever makes their opponents monsters.
Ok, so where are the paper ballots and audit trail? Our government does not listen or care what the American voter wants.
They may try for more!
The US government is bankrupt, but they don’t know it yet. Only the bond market can tell them. The last 20 year auction almost did that. However, it will take a lot more. These debt increases are growing faster than the GDP. The budget deficit is lower than the increase in debt because the off budget progams are running expenses greater than revenues as well. A slow motion train wreck.
A 400 billion $ campaign re-election fund.
Biden’s America: open borders, endless wars, and he’ll tax and give government handouts until prosperity is achieved! Great, deep thinker that JFB!
Why raise taxes to pay for $400 billion in new spending when you can just borrow it? So much easier that way.
Let’s tax future earnings!
Redundant – inflation already does that.
It’s an election year. Biden wants to increase the federal spending by 5.8%. That’s his starting point. Under construction 5+ units : 979K. Biden wants to add 2,000,000 units. Free community colleges to prepare gen-Z to the modern workforce. Cover childcare so women can go to work. $7.3Tbudget/(28Tx1.03)$29T GDP = 25%.
How will he pay for it?
“….that’s all take and no give.”
This is what I think of the last 44 years of Reaganomics “job creating tax cuts that pay for themselves” that have created those jobs in China, Mexico, India, caused household debt to income to double as real wages flattened and government debt to GDP tripled while CEO salaries quadrupled relative to median income.
How about a tax overhaul back to pre-Reagan rates, except that job creating tax cuts are given in direct proportion to actual jobs created, here, inside the U.S.?
..
Since Trump we expanded jobs in the US. Biden follows his footsteps. Carter was the one who sent American jobs to China to fight inflation.
Actually, Bush (both) and Clinton were responsible for the most jobs deported.
True, it doesn’t change the fact that the entire purpose of “job creating tax cuts” is to create jobs.
As a result, wages haven’t risen with inflation, household debt to income ratio has doubled and the Fed’s the band aid by cutting rates since 1980 to make that debt affordable.
I cringe when anyone tries to fault the Fed for this mess, I’m no fan of the Fed, but this is a fiscal problem, not monetary.
Mish isn’t a fan of government spending, fine, what’s Mish’s solution to the end result of 45 years supposed “trickle-down”?
Under Trump we lost jobs, granted, that was from COVD.
Carter signed trade with China, yes, but he didn’t give billionaires single digit tax rates for outsourcing those jobs.
Don’t forget how many loopholes there were during the Reagan years. For one, you could deduct your credit card interest. Nobody paid the posted rates.
Not up to looking back, but I’d bet money that example, and most middle class breaks, is similar to Trump cutting taxes for all, except that our tax cuts expire next year while the top brackets are permanent.
How many top bracket deductions haven’t expired since then, while those for the middle have?
I’ll bet you know that answer.
.
Simple vote buying on display.
Biden will Win the election because Independents are 100% flat out sick of the the Orange Mussolini Wannabe’s moronic lies. Shut yer mouth Donnie and you could win…but you’re too damn foolish to do so.
ANY other Republican, (who wasn’t a wackadoodle like MTG) could have won this election.
Instead it looks like Angry Orange Man is going to lose a THIRD lawsuit to Carroll because he just can’t stop saying stoopid shite. Already had to post bond for $92 MILLION…and TWO days later goes out and says the SAME DAMN Things. He’s actually got to be deranged or has lost his grip on reality. That money is going to go from $92 MILLION to well into the 9- Figures.
I don’t think either of these candidates are any good but Donnie is going to BK the NRC on just this series of lawsuits to Carroll.
TDS on display again.
You don’t think independents can spot Biden’s lies too? You don’t think they go to the grocery store or gas station and see what’s happened to their spending power?
I’m independent, I’ll vote for a stray dog over Trump.
A stray is more aware than Biden. And a vote for Biden is a vote for Harris. No thanks
You’ve gotten 8 downvotes.
This cannot stand, I’m the king of downvotes here, there can only be one!
.
Now that Neocon Nikki is out of the race, the Neocon Superpac (led by Liz Cheney, who would be a perfect replacement for Victoria Nuland) are focused on keeping Trump from derailing WWIII – link to greattask.com.
We are dealing with VERY sick people who believe in totalitarianism and depopulation. They do not care about voters because they determine the winner. Thinking that logical arguments will win the day is delusional.
The enemy of your enemy is NOT your friend. The naïve (at best) never-Trumpers who believe the establishment Nutjobs are their friend because they also hate Trump do not understand the Nutjobs are literally wanting to destroy the country by any means necessary. If you missed it last night, I suggest watching Mark Levin discuss “The Law” by Fredrich Bastiat – – link to youtube.com.
The collapse of a Nation takes 13 years, which will be around 2032 – link to armstrongeconomics.com.
Well, according to Democrat rhetoric over the years, the Trump tax cuts were only for the rich so letting them expire shouldn’t hurt anyone, but the rich. lol
You apparently don’t realize Trumps cuts for the middle class expire this year while the upper tax brackets remain.
How do you not know this?
Do you file tax returns in the U.S.?
.
“Marginal rates will revert to their permanent
pre-TCJA levels of 10%, 15%, 25%, 28%, 33%,
35%, and 39.6%. Aside from the first two
brackets (10% and 15%) these rates apply
over different ranges of taxable income than
the TCJA rates. These income ranges are
annually adjusted for inflation.
IRC Section 1”
link to crsreports.congress.gov (page 2)
IOW, everything goes back to what is was for individual rates before the TCJA, including the ranges (adjusted for inflation).
Biden is talking about allowing only the top rates to revert back, which if one does the math using the IRS tax stats shows it won’t begin to pay for the proposed increased spending.
Correct, I recalled incorrectly, the permanent cuts were corporate, from 35 percent to 21 percent it also exempts foreign income of multinational corporations from tax and a 20 percent deduction for pass-through income.
I stand by my statements on taxes since 1980, and the fact that the top bracket pays single digit rates via loopholes, like borrowing against investments rather than withdrawing as cap gains income, which can then be used as a write-off in many cases.
Biden cited the average effective rate for billionaires is currently 8.5% at the SOTU.
Waitresses, nurses and plumbers pay at least twice that effective rate.
.
I can see that spotting sarcasm is not your strong suit, obviously. In the future, I will try to remember to follow with “/sarc”.
Revoke Trump and GWB tax cuts. We have a $30+Trillion debt. Don’t cut SS or Medicare and raise FICA taxes as needed. That will piss off both sides. So what? We’ll have debt cut in half in 10 years.
And one more thing. Reinstate the draft, eliminate the President’s authority to wage war longer than 90 days without congressional approval as the Constitution requires and add a war tax. Make it illegal to wage war using Debt. IE, a war tax surcharge on EVERYONE as a % of income.
Better yet, only permit congress to make war.
You have to allow for short term circumstances but I mostly agree with you. Maybe 30 days is enough. I don’t want a draft personally but combine a war tax with a draft (no bone spurs or college deferments allowed) and when we have war they will be short. Screw the MIC.
That’s already the case.
If one doesn’t actually want a declared war, the workarounds include: ‘conflicts’, ‘anti-terrorism’, ‘police actions’, and ‘democracy building’.
Since Trump the US finance wars, but isn’t in wars. We have more allies and more
production capacity to prevent wars.
The assumption that higher rates = more revenue and lower debts is flawed because
1) People change their economic behavior in response to tax rate changes, especially the wealthy. It is never ceteris paribus.
2) The government will find new ways to spend any increase they might happen to get.
The IRS has tax stat tables. They are always 3 years behind but if one goes to the latest (2021) and looks at the taxes collected at the 37% rate and recomputes based on a 50% rate and ASSUMES no change in behavior (yeah, right) the government would have collected a whopping $63.1 billion more.
Look at it another way. Seize all of the assets of the Forbes 400. ASSUME you can liquidate it all at current market prices to raise the cash – you won’t be able to, not even close – but let’s assume you can. The money collected will fund the government for about 9-10 months. Then what do you do next year, the year after hat and the year after that and …?
The deficit problem will not be solved by taxation.
Eliminate income taxes. Tax spending. Limit government spending to 17% of GDP. Eliminate at least half of all government jobs. These are all non-productive.
Biden wants to hire 2500 air traffic controller to deal with shortages. Who is onboard (pun intended)?
link to cnbc.com
The real question is where will those 2500 people come from with everyone else competing for the left over labor scraps?
Scrap and or flawed products from the DEI factory I imagine.
The DEI factory is all that is left, that’s why the push began to begin with, haven’t you been paying attention to what’s happening to the aging of this country?
Which does make my conjecture just about right wouldn’t you say?
I have a buddy that is former military ATC and now works as consultant with FAA etc. He said there is an acute shortage of controllers. The overtime hours put in at some of the ATC regional centers is off the charts. Probably don’t want overworked ATCs planning air routes.
The labor noose will tighten around everyone’s neck soon enough.
“Probably don’t want overworked ATCs planning air routes”
I fly often, no, I probably don’t
AI
Oh really? It seems the Russians are wanting Africans to fill their labor shortages.
link to cepa.org