What about Washington D.C., particularly the ruling Democrat Party, makes them think that the American people are thirsting for bigger government, more spending, and higher taxes? Why do they think the American people are stupid enough to fall for their economic nonsense?
The professional D.C. class has been flipping cartwheels since U.S. Senator Joe Manchin, D-WV, agreed to support a smaller but still massive “Build Back Better” spending bill.
CNN commentator Stephen Collinson wrote:
Democrats this week have the chance to validate their monopoly on political power in Washington, create a legacy of true significance for President Joe Biden and even boost their hopes in daunting midterm elections in three months.
Matt Robinson of Newsweek wrote:
The likelihood of a Republican takeover of the House ending legislating on Democratic priorities remains high, and incumbent members of Congress desperately wanted something fresh and meaningful to run on before the looming midterms.
The plan from Manchin and Chuck Schumer, D-NY, would spend $369 billion on energy and climate initiatives and $64 billion on health insurance subsidies under Obamacare.
Democrats have decided to sell this massive tax and spending proposal by trying to fool the American people by calling the measure the Inflation Reduction Act of 2022. The plan would raise $739 billion in new revenue— primarily by increasing corporate taxes and allowing Medicare to set drug prices. (I refuse to use the term “negotiate” drug prices. It will do no such thing. The government will set prices, assuring some lifesaving and life-improving medications will no longer be available to many people.)
As reported by the New York Post, the energy and health care deal from Sens. Joe Manchin and Chuck Schumer would raise taxes on millions of Americans earning less than $400,000 annually.
The Congressional Joint Committee on Taxation found that taxes would jump by $16.7 billion on American taxpayers making less than $200,000 in 2023 and raise another $14.1 billion for taxpayers who make between $200,000 and $500,000.
U.S. Senate Republicans further argue that over the next 10-year window, the average tax rate would go up for most income categories. By 2031 tax increases to support new energy credits and subsidies would have people earning less than $400,000 pay as much as two-thirds of the additional tax revenue collected that year.
Fox News reported, “the committee’s analysis said Manchin’s bill, officially titled the “Inflation Reduction Act,” would raise 2023 taxes on six of eight income categories lower than $200,000.”
Manchin is already catching heat back home.
U.S. Rep. Alex Mooney, R-WV, told the (West Virginia) Intelligencer and Wheeling News-Register that Manchin’s support of the act would harm West Virginia’s coal industry through new taxes. He also said subsidies for electric vehicles included in the act would prioritize “handouts to rich California elites to buy expensive battery-powered vehicles on the backs of hard-working West Virginians.”
“Make no mistake, Sen. Manchin is betraying West Virginia and destroying our economy,” Mooney wrote in what may be one of the opening salvos in a potential 2024 U.S. Senate race between the two candidates.
Rich Lowry got to the heart of the matter on why this measure will fail on the policy front and political.
A signature of Biden’s legislative strategy has been pursuing sweeping legislation that has nothing to do with voters’ real concerns. Worried about inflation? Don’t worry. We have a partisan, enormously ambitious voting-rights bill, police-reform bill, or new multitrillion-dollar spending bill just for you.
At a time of inflation, it offers hundreds of billions of new spending. As the economy dips into a recession or close to one, it offers hundreds of billions in new taxes. And its main element is more green-energy spending when the climate is far down voters’ priority list.
I have faith in American voters. They are not fools, and they are not stupid. Politicians who treat them as such will learn this lesson.
Americans are smart enough to know that when the country is facing runaway inflation, spending even more money on pet liberal Democrat projects is a bad idea. Voters know a tax increase when they see it. They don’t care if you call it “closing loopholes.” They know raising taxes in a recession is bad economic policy.
Democrats will pay for this reckless move politically. But so will you. You are going to see more inflation, higher taxes, and layoffs.
Maybe Democrats don’t care. They just want to spend more money, no matter the cost to you or them politically. Perhaps they already believe they will lose both the U.S. Senate and the House this November, so Democrats want to get what they can.
However, Democrats can’t believe you are stupid enough to fall for this. They simply can’t.
Except that’s really stupid.