Joe Biden Proposes Corporate Tax Increase
A new Congressional Budget Office report predicting that the United States national debt will consume 166 percent of the nation’s gross domestic product in 30 years is not prompting the Biden administration to cut spending.
On March 11, Joe Biden released a budget proposal for Congress to hike government spending from $6.9 trillion per year to $7.3 trillion. To pay for this spending hike, Biden proposed raising taxes from $5.1 trillion annually to $5.5 trillion.
This tax hike would be accomplished by raising the highest corporate tax rate bracket from 21 percent to 32 percent. Yet it would still result in a $1.8 trillion deficit.
America last: If Biden wants to reduce the deficit from $1.86 trillion to $1.78 trillion, he should slash government spending. Raising the corporate tax rate bracket to 32 percent will hobble U.S. businesses with a tax burden higher than their competitors in China and the European Union.
Congress is unlikely to approve Biden’s tax proposal, but making such a proposal shows he is trying to make U.S. industry less competitive.
As Stephen Moore, a consultant with Freedom Works, put it: “This will lead to an out-migration of capital from the U.S. to our rivals as sure as river water flows downstream.”
Economic decline: The rapid increase in taxation under the Biden administration is reminiscent of the economic policy that dominated the Roman Empire in the decades before its fifth-century fall to Germanic invaders.
Just before Rome collapsed, there was a rapid increase in taxes. Rome had grown fat and prosperous; and people sought leisure, less work, more play, idleness; and as they shirked worked, they began to look to the government to provide. Today, we call it doles, relief, pensions and government aid. When any nation begins to look to its government to provide, that nation is on a greased toboggan-slide to decay and oblivion. It brought about the fall of Rome. It brought about the fall of proud Babylon long before. And it’s bringing about the fall of America today.
—Herbert W. Armstrong, Plain Truth editor in chief, 1956
Learn more: Read “The Party and the Crash.”
