by Mitch Kokai
Senior Political Analyst, John Locke Foundation
Joe Biden is not a stupid man. He may believe crazy stuff but he certainly knows that raising taxes on the most productive members of society and their capital will choke off economic growth as the nation emerges from its self-inflicted, pandemic economic wounds.
With less growth and fewer jobs, Biden is fully aware of what his policies will do. But looking at the politics of Biden’s situation, you can see why he doesn’t feel he has a choice.
Unless Republicans shoot themselves in the foot, they are bound to win back at least one house of Congress. That telescopes Biden’s time to make good on the trillions of dollars in promises he made to every racial, ethnic, and gender identity group in America from four years to now less than two.
The more than $4 trillion he’s already sent out is just a downpayment. “Rebalancing the American economy,” as the New York Times likes to refer to Biden’s soak-the-rich plan, will cost at least double that amount in the long term. And the wrenching tax increases he needs to make it happen can only be found among the most successful Americans. …
… Taxing 60 percent of someone’s wealth is not “fair” and it’s not “equitable.” It’s confiscatory and radically discriminatory. But it’s OK because the rich can “afford it.” …
… Once Biden’s tax plan is in place, he must hope that Kamala Harris can win in 2024 or the whole scheme could unravel. The short-term political popularity of raising taxes on the “rich” will evaporate once taxpayers realize the middle class will be next when the tax plan falls short of revenue expectations.
It’s likely that Biden and the Democrats will find a way to blame Republicans when that happens.