Study: Biden’s budget tax hike destroys jobs, lowers wages, and reduces economic growth

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Washington, DC President Biden’s budget for fiscal year 2024 (FY24) will cut jobs, slash wages and reduce economic growth for families already struggling to make ends meet, according to a new, nonpartisan study. in final analysisThe Tax Foundation found that President Biden’s $4.7 trillion tax hike on workers, households, farmers and small businesses would:

  • 335,000 jobs destroyed.
  • Cut workers’ wages by 1%.
  • Reducing growth in the US economy by 1.3%.

House Ways and Means Committee Chairman Jason Smith (MO-08) said:

With his budget, President Biden is making it clear that he does not care about how his failed policies affect the American people. With the American economy still faltering, President Biden is threatening tax increases of nearly $5 trillion that, according to a nonpartisan analysis, will reduce economic growth by 1.3 percent. It will make life more difficult for working-class Americans who struggle to put food on their tables, clothes on their backs, and gas in their cars.Families already feeling the brunt of inflation are expected to see their wages drop by a full percentage point under this budget—on top of their wages falling by 3.7%. percent since Joe Biden became president. 335,000 jobs are expected to be cut from our economy as the Biden administration continues its assault on workers by again raising taxes on job creators. Worse, the combined effect of fewer jobs and lower wages will push Social Security closer to insolvency and threatens the retirement of millions of elderly people.

It is clear from this budget that Democrats see lost jobs, shrinking salaries, and a weak economy as the price to pay for enacting their far-left agenda. The Ways and Means Committee is holding hearings outside the Beltway to hear working Americans tell us that their communities, neighbors, and employees stand to benefit from tax relief, not tax increases that exacerbate inflation and worker shortages. “

In their analysis, the tax foundation admits they may only be scratching the surface of the damage a Biden budget will do to working families and the American economy:

Our appreciation It will probably reduce the full economic damage from the budget … “

The Tax Foundation is challenging President Biden’s claims that his budget is a fiscally responsible plan to reduce deficit spending in America:

The actual deficit reduction is highly uncertain, as at least $1 trillion of the estimated reduction comes from untested revenue sources (eg, the billionaire’s minimum tax and the UTPR). Additional, If some of the policies discussed in the budget were extended, it could wipe out all of the expected deficit reduction, while hurting economic output in the long run.

In other words, Biden’s budget imposes massive tax hikes that will destroy jobs, wages, and the economy while doing nothing to put America’s fiscal house in order.

Key takeaways from the Biden budget:

  • Raise taxes on small businesses: Raises the $650 billion net investment income tax on small businesses under the false promise of making Medicare solvable. Democrats are twice counting this tax increase, having already counted it for a faux deficit reduction.
  • It kills American jobsBiden’s budget tax increases will kill 335,000 jobs, hurting workers’ ability to provide for their families and make ends meet.
  • pressure on family budgets: Wages will drop 1.0 percent, which will hurt workers who have already lost $10,000 from the Biden inflation crisis. Real wages have fallen 3.7 percent since Joe Biden became president.
  • It gives China a competitive advantage: The capital stock fell 2.4 percent, making it difficult to make the investments needed to bring key supply chains back to America and away from communist China.
  • Makes labor shortages worse: Biden’s budget revives the dismantled Child Tax Credit (CTC) scheme from the American Rescue Plan that eliminated work requirements. The result is a continuing labor shortage as Americans are pushed to the margins of the economy.
    • In all of 2024, 1.6 million will return to the workforce. In the first two months of 2024, when CTC work requirements were restored, 1.7 million Americans returned to the workforce.
  • Hurts US energy production: New taxes on America’s energy supply chain will make American energy less competitive in the global market, hurting workers.
  • Cuts Social Security benefitsFewer jobs and lower wages will lower the expected revenue in the trust, accelerating the Social Security bankruptcy.

is reading: “The Tax Foundation Details and Analysis of President Biden’s Fiscal Year 2024 Budget Proposal.”

is reading: President Biden’s $4.7 trillion tax hike proposal: Small businesses should send a bigger check to Washington

He watches: Working Americans testify that they need a tax cut, not a tax increase