Charge of the Unicorns
My Build Back Better Agenda costs zero dollars.
Instead of wasting money on tax breaks, loopholes, and tax evasion for big corporations and the wealthy, we can make a once-in-a-generation investment in working America.
And it adds zero dollars to the national debt.
— President Biden (@POTUS) September 26, 2021
The opening sentence of Biden’s Tweet, is of course idiotic.
For those who think it is a typo, and Biden meant something else, Biden made the same statement at a press conference last week.
“Every time I hear this is going to cost A, B, C, or D—the truth is, based on the commitment that I made, it’s going to cost nothing,” said Biden.
Fact Checkers Missing in Action
Where are the Democratic fact checkers when you need them?
Even if you grant Biden allowances that he really meant “My package will be fully paid for by tax hikes,” it’s still a lie.
Pelosi Covers Up for Biden
Pelosi doesn’t want to talk “numbers and dollars.” Why? It’s the largest tax increase and most expensive legislation in history.
$4.3T in new spending
$2.1T in new taxes
$2.4T in more debtShe talks a lot about the children—our grandkids will certainly pay for these policies. https://t.co/laUf3lT4BE
— Rep. Steve Womack (@rep_stevewomack) September 27, 2021
“Let’s not talk about numbers, let’s talk about values,” said Speaker Pelosi in the above clip.
Lies, Gimmicks, and Phony Numbers
To make the package seemingly appear as if taxes will cover it Budget Tricks Disguise the True Cost of Biden’s Vast Entitlement Plans.
- Start with the child allowance, which is among the bill’s most expensive provisions. Extending the $3,000 to $3,600 per-child payments for a decade would cost roughly $1.1 trillion. That’s as much as all of the income tax increases on individuals passed by the House Ways and Means Committee. Democrats have hidden the real cost by extending the allowance only through 2025. Even if Republicans gain control of Congress and the White House in 2024, Democrats and their media allies will bludgeon them to extend the payments, which will cost another $110 billion each year. [For 5 years – Total $550 billion]
- Democrats are using a different time shift to disguise the cost of their Medicare expansion. New vision and hearing benefits would kick in over the next two years and cost about $20 billion a year. But Democrats are delaying the phase-in of the much more expensive dental benefit to 2028. This “saves” $420 billion over 10 years, but the costs explode after that. [Cost $420 Billion minimum in future years]
- Then there’s the new universal child-care entitlement, which gives $90 billion to the states—but only from 2022 to 2027. But what happens when the $90 billion runs out, which may occur before the 2027 expiration? The bill automatically appropriates “such sums as may be necessary for each of fiscal years 2025 through 2027.” [Cost $90 billion plus any shortfalls to 2027]
- Democrats also charge states with standing up a universal pre-K entitlement, which would start next year and run through 2028. The House Education and Labor Committee bill doesn’t specify an appropriation, but President Biden’s budget projects this new entitlement would cost $33 billion a year when fully phased in. [This one kicks back to a state responsibility, but who really believes that? I don’t, so factor in another 33 billion for 4 years totaling $132 billion.]
10-Year Shifty Math
Biden uses an arbitrary stop date of 2025 on child allowances, a start date on dental of 2028, a stop date on child care of 2027, and a stop date of 2028 on “free” college.
In practice, once entitlements are granted, they are never taken away.
Total up the shortfalls over a 10 year period and Biden will need to come up with another $1.192 trillion in taxes on top of his proposed tax hikes.
Another problem in all of this is projected economic gains and tax revenues never meet promises. Never really means never.
For example, Biden estimates that expanding the IRS would bring in $463 billion, but the CBO projects $120 billion.
Oops, that another $343 billion shortfall.
Factor that in and you have a shortfall of $1.5 trillion or so on a $3.5 trillion deal, and that does not count the $1 trillion infrastructure deal.
Brain Trust With No Brain
For discussion of Biden’s IRS proposal, please see Biden Wants to Fix a $7 Trillion Tax Evasion Problem With a Brain Trust
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Mish
Most of the money went to defense spending. That isnt just Biden or Pelosi’s doing
Entitlements are the biggest government programs in the US.
The biggest entitlement programs benefit seniors.
In FY 2020 the Social Security program cost $1,096 billion.
In FY 2020 the Medicare health-care program cost $776 billion.
Entitlement programs also benefit the poor. In FY 2020 the Medicaid health-care program for the poor was
to cost $687 billion. All other welfare programs were
“guesstimated” to cost $1,203 billion.
Ah, the deficit peacocks of 2020 have metamorphized into deficit hawks in 2021. I am {{{shocked}}} LOL.