Joe Biden’s proposed budget for Fiscal Year 2024 is facing criticism from fiscally conservative voices due to its massive size and increased taxation. The $6.8 trillion budget, $1 trillion more than last year’s proposal, includes tax increases totaling $5.5 trillion, including a 25% billionaire tax on households worth more than $100 million and an increase in the corporate tax rate from 21% to 28%. Additionally, the budget quadruples the corporate stock buyback tax, doubles the capital gains tax, and implements a new tax on billionaires.
Despite the Biden administration’s claim that the budget will reduce the deficit by nearly $3 trillion over the next decade, many experts disagree.
Steve Moore, a former Trump administration economics adviser, called the proposal a “fiscal atrocity” and “the worst budget” he has seen regarding its economic impact. He warns that Biden’s tax hikes leave “a huge hole” in America’s economy and will slow growth, making it harder to produce the revenues needed to make the program solvent.
“We can’t stay on this path of massive, out-of-control government spending and massive debt. I mean, point to a single country in the history of the world where this kind of economic strategy worked because I can’t find one,” Moore added.
Larry Kudlow of Fox Business Network shares a similar view, calling the budget a “totally unserious, massive tax and spend big government approach.” He believes the radical left Democrats want to punish success and are driven by their “radical ideologies toward a redistributionist vision of a declining American economy.”
The proposed budget is unlikely to be passed by Congress due to its unpopularity among Republicans who won control of the House last year. Furthermore, Sen. Joe Manchin (D-WV) expressed concerns about the proposal, stating that the U.S. cannot be energy secure unless it produces oil, gas, and coal “cleaner and better anywhere in the world.”
Biden's budget is calling for $2 trillion in new taxes.
You can't make this stuff up; his out-of-control spending has to stop. pic.twitter.com/G0oH9qF6Eh
— Sen. Marsha Blackburn (@MarshaBlackburn) March 10, 2023
#Biden's Federal budget estimates include the following 10-year economic assumptions. Not a single #recession year with average GDP growth of 2.1%, #inflation 2.3%, 10-year Treasury yield 3.4%, and #unemployment 4%. Pure Fantasy. Realistic assumptions produce exploding deficits.
— Peter Schiff (@PeterSchiff) March 10, 2023
While Biden’s proposed budget pays lip service to some admirable goals, such as reducing the deficit, it is clear that its implementation would be met with significant resistance from those who view it accurately as a massive tax-and-spend approach that would slow economic growth and lead to even more of the skyrocketing inflation of the last two years. Fiscally conservative voices warn that Biden’s budget proposal will not work and would more likely trigger a financial crisis.