Saturday, October 30, 2021

Biden's Build Back Better plan builds back bureaucracy

By William Haupt III | The Center Square contributor 

 President Joe Biden - AP Photo/Matt Slocum

"Collecting more taxes than is absolutely necessary is legalized robbery." – Calvin Coolidge, 1925

Political historians agree, the Republican Convention of 1924 in Cleveland is considered the most dull and uninteresting presidential convention in history. Delegates didn't even attend many of the sessions. The most popular drink was a "keep-cool-Coolidge" fruit juice highball. Will Rogers said, "There was more entertainment at local church bingo games than there was at this convention."

This is a reminder that politics is not about drama but principle. It is not about charisma, it's all about character. No presidential convention since 1924 has yielded such a principled candidate as Calvin Coolidge. He promised to cut the deficit, taxes and welfare dependence. Calvin Coolidge's pledge resonated with concerned voters and he defeated southern Democrat John Davis by a landslide.

Nicknamed “Silent Cal” for his quiet and steadfast nature, he succeeded Warren Harding, who died in office. He cleaned up the rampant corruption in Washington and was a model of stability, respect and cohesion for the American people. He was pro-business, against big government and abusive taxes. Coolidge’s honesty and integrity helped restore American confidence in central government.

Coolidge's strong belief in capitalism and small government brought America its strongest growth in decades. He avoided foreign conflicts, slashed taxes, federal spending and increased import tariffs. Americans enjoyed their highest standard of living in history. Coolidge was one of the most popular presidents ever elected. Coolidge told us, “The chief business of the American people is business.”

The quiet, respectable Coolidge was a comforting symbol of virtue and honesty for America. At the end of his term, Coolidge chose not to run again, claiming he had done his duty for America. He was responsible for the prosperity of the roaring 20s and America's unique cultural and social evolution.

When Democrats recently proposed the largest tax increase in almost a century, members of the GOP hastily began seeking a wizard who could resurrect the spirit of Calvin Coolidge for advice!

The goal of the progressive's tax proposal is to put more economic resources under the control of progressive bureaucrats, and limit private sector economic independence. It weighs in at over 880 pages! It is obvious why the left keeps the details of Biden's ambiguous “Build Back Better Act” hidden from U.S. taxpayers.

"Once we pass the bill and you read it you will like it." – Nancy Pelosi

When government spends money, it spends the taxpayer's money. They actually believe that they have an endless reserve of capital to spend. With more than $2 trillion in tax increases, Biden's tax-and-spend misadventure will eclipse Obamacare’s $500 billion in tax hikes that punished America.

Biden's tax increases will fund costly, controversial liberal programs targeting identity and special interests that take over huge segments of the economy. It expands dependence on government and control over Americans and it reduces the socioeconomic benefits of free market capitalism.

Although Biden continues to claim his tax package will not increase taxes on people earning less than $400,000 per year, official scorekeepers at the Joint Committee on Taxation detailed that the "Build Back Better Act" will inherently raise taxes on middle income Americans. Under Biden's tax plan, taxes will go up for families making $50,000 or more per year, contrary to what Biden claimed in the past.

"My tax increases will not affect anyone making under $400,000 a year." – Joe Biden

Biden's tax hike will increase the individual top tax rate to 46.4%. It will add a substantial marriage penalty. These higher taxes that apply to individuals earning $400,000 will hit married couples at $450,000. The bill will add a new 3% surtax for all taxpayers earning more than $5 million a year.

Currently, most small businesses are not subject to the corporate income tax. They are taxed under the individual income tax. These are referred to as "pass-through businesses." These include sole proprietorships, partnerships, limited liability companies and S-corporations. Biden will end that.

By increasing the top marginal income-tax rates, Biden's tax bill will substantially increase taxes on small businesses that file as "pass-throughs." They currently pay their taxes through the individual income-tax system. This will also limit the Section 199A deduction for small business pass-through prototypes and impose the "Obamacare Net Investment Income Tax penalty" on them as well.

Biden's bill will increase the top capital gains tax from 20% to 25%. This is another layer of taxation on business. This higher capital gains tax and other tax increases will expand the tax code’s unfair double taxation on investments and savings. This will diminish business output and cut production.

The U.S. tax rate will be higher than communist China's 25%. These taxes will be paid by every American. Industry covers tax increases with reduced wages, increased prices and diminished investment in expanding operations and employment. Businesses don't pay taxes, consumers do.

"Those that depend on government for support forget they are the government." – Calvin Coolidge

This bill was designed by progressives to double tax the cost of doing business in America. It isn’t just a liberal tax-and-spend bill. By increasing the cost of doing business and building the economy though the private sector, this empowers progressive central planners to run the economy for us.

Calvin Coolidge told us, "Civilization and profit go hand in hand." Calvin Coolidge ran America like it was a business. He cut the size of government, lowered taxes and reduced business regulations. His modest, hands off approach to governing grew the economy 8% from 1924 to 1929. The Dow averaged 26% growth in five years. All Americans benefited from Coolidge's limited government.

Biden's "Build Back Better Act" creates $2.1 trillion in new taxes for every American and business. The Tax Foundation determined it would reduce U.S. gross domestic product (GDP) by 1% and result in 165,000 fewer jobs within 18 months. It will reduce America's standard of living. The left's all inclusive tax penalties will give progressives more money to spend than the total wages earned by every U.S. worker.

"Politicians think that all public money is theirs to spend." – Calvin Coolidge

Any tax system that penalizes production and investment in our nation's future is un-American and anti-republican. Biden's tax hikes have nothing to do with people paying their fair share. This slaps American enterprise in the face. It destroys the ability of market capitalism to manage the economy through the private sector. This bill confiscates capital so government can "redistribute wealth and misery." Biden's "Build Back Better Act" is bad for America.

"The chief meaning of freedom is when the American people work less for the government and more for themselves." – Calvin Coolidge