Having unveiled a string of ambitious spending proposals, the Biden administration needs to come up with a way to generate an additional $4 trillion in revenue over the next ten years. But while it has no shortage of ideas, it will almost certainly come up short.
NEW YORK – Now that US President Joe Biden’s administration has proposed an American Jobs Plan and an American Families Plan, it is looking for at least $4 trillion in additional tax revenue. Unlike the six pandemic-related fiscal programs enacted between March 6, 2020, and March 11, 2021, these new spending packages are not meant to provide immediate economic stimulus. Because they are social and redistributive programs that focus more on the supply side, they will need to be funded either through higher taxes or spending cuts. And with no such offsetting cuts under consideration, tax increases seem inevitable.
NEW YORK – Now that US President Joe Biden’s administration has proposed an American Jobs Plan and an American Families Plan, it is looking for at least $4 trillion in additional tax revenue. Unlike the six pandemic-related fiscal programs enacted between March 6, 2020, and March 11, 2021, these new spending packages are not meant to provide immediate economic stimulus. Because they are social and redistributive programs that focus more on the supply side, they will need to be funded either through higher taxes or spending cuts. And with no such offsetting cuts under consideration, tax increases seem inevitable.