Over the last several months, small businesses persevered the best they could, holding on until “temporary” welfare programs driving people away from work expired. But if there were any doubt left that Dems’ ultimate goal wasn’t a temporary boost to Americans most impacted by lockdowns, but rather a calculated step toward government control and socialism, their proposed $4.3 trillion tax-and-spend bill removes it all ($4.3 trillion is the true cost, as we learned in the Budget Committee).
Walk down any main street or city avenue in America today, and you will see sign after sign with help-wanted pleas, hiring incentives or apologies in advance for shortened hours and delayed service due to staff shortages. There are nearly 11 million job openings nationwide, and our small businesses are trying to get back on their feet after the crushing lockdowns.
But where are the workers? The short answer is that the Biden Administration is more interested in handouts that pay more, or just as much, to stay home than going back to work. Since taking office, President Joe Biden and congressional Democrats have prioritized big government over earned pay stubs.
The Democrat tax-and-spend plan won’t solve this problem. The proposal would eliminate the child tax credit as we know it, replacing it with welfare without any work requirement. Republicans believe the family is the foundation of a strong society, which is why we have supported expanding the child tax credit in the past. But we also know work establishes purpose, and there is no government substitute for a job and an earned income.
By removing a work requirement, the government is putting itself in competition with small businesses. And as the last year has proved, small businesses operating on tight margins are no match for the government printing press or mandate machine.
Another damaging effect of $4.3 trillion of government spending is continued inflation. It’s good for Americans to have more money in their pockets, but that is best achieved through lower taxes, not ill-conceived labor policies and subsidies that render the dollar worthless.
After already passing nearly $2 trillion in spending this year, our economy is running at the highest rate of inflation in 13 years. That means higher prices for everyday goods for families and businesses. This isn’t just an indicator reserved for economists: “Sysco, one of the nation’s biggest food distributors, showed food inflation of 10.2 percent on its most recent quarterly report, increases that are passed along to restaurants and to the restaurants’ customers in turn,” The Washington Post reported.
Moreover, even wage gains for lower-wage workers are negated by these higher consumer costs. A Democrat agenda that artificially boosts demand through government stimulus while curtailing supply through a self-inflicted labor crisis and higher energy costs will only make this situation worse.
Finally, the Democrats are planning the largest tax increase in history. The headliner is the increased corporate tax rate, which will affect all businesses and ultimately their employees. In 2017, Republicans in Congress and then-President Donald Trump slashed the corporate rate to 21 percent, from 35 percent, resulting in the greatest economy we’ve seen in a generation. Jobs and wages increased at historic levels for Americans across the socio-economic spectrum.
Biden and the Democrats’ plan raises the corporate tax rate to 26.5 percent, even further away from a proposed “global minimum tax” of 19 percent that will drive more businesses overseas, further discouraging production and innovation in America.
The Democrats argue that big business can afford to pay more. But aside from their hypocrisy that creates new carve-outs for rich university endowments like Harvard, their plan hurts the little guy. By removing deductions and increasing taxes by nearly 4 percent for business owners that operate as “pass throughs,” the plan puts at risk small businesses that have been struggling since March 2020 — and the new ones created since the pandemic under assumed tax burdens.
As a former small-business owner, I know these conditions aren’t sustainable. Americans don’t deserve to bear the brunt of policies pushed by people in Washington who will never feel the effects of them, and who will receive a healthy paycheck each month no matter what.
The Democrats’ idea of an economic plan is to punish citizens who are producing for our country and working to support their families, while rewarding themselves and others for staying home. ✪