Pete Buttigieg claims that Biden’s infrastructure plan will be paid for in 15 years by increasing taxes on the rich. I remember years ago from Bill Clinton on how much the federal government was going to make from his newest tax the rich plan. The idea was to place a special tax on things only the rich buy such as yachts. But, at the end of the day, the federal government took in less than they were before the tax was put in place.
The reason is simple. The rich are rich for a reason. They, simply did not as a general rule buy luxury items in the United States. They would buy, say a yacht from another country in order to avoid the taxes. But, the workers who made yachts in the United States were put out of work because no one was buying the American version of these products anymore. A few years later, Democrats quietly revoked the tax, adding it to another bill where it did not receive much notice.
In comments to NPR Thursday, Buttigieg said:
Over the course of that eight-year vision, we are going to be enhancing the roads and bridges of this country. We’re going to be improving our ports and our airports. We’re going to be delivering better transit and better rail. Those are investments whose benefits will last a lifetime and then some, and that eight years of investment is fully paid for across the 15 years of the tax adjustment, which means by year 16, it’s actually going to reduce the deficit.
The way they plan on financing the infrastructure bill is by raising the corporate tax from 21% to 28%. I*t’s not hard to figure out what the net result will be. Companies will just move their manufacturing plants to a country with a much lower corporate tax.
On top of that failure, the workers who previously made the company’s products will be thrown out of work that will cut the amount collected in federal income taxes, while at the same time creates a need for government programs such as unemployment and such.
Biden’s plan “makes once-in-a-century investments that will strengthen our economy and allow us to compete with countries like China,” according to talking points the administration distributed.
The White House acknowledged the tax hike could put American companies at a disadvantage, so it said the Biden administration will lobby foreign governments to raise taxes in their countries to create parity.
“President Biden is also proposing to encourage other countries to adopt strong minimum taxes on corporations, just like the United States, so that foreign corporations aren’t advantaged,” the details said.
Buttigieg claims that the Biden Administration would try to convince other countries to raise their corporate taxes. Either he is mentally unbalanced or he thinks we are.
Why would say China increase the corporate tax and give up the advantage their products have in the marketplace? Not to mention the increased need for more workers as the United States see their demand shrink.