AMAC in the Media

The Socialist $3.5 Trillion ‘Spend-A-Thon’ Will Impact the Average American

Posted on Tuesday, August 10, 2021
AMAC, John Grimaldi

WASHINGTON, DC, Aug 10 — The Association of Mature American Citizens [AMAC] has launched a campaign to kill a $3.5 trillion mega-bill that “ultra-progressive” democrats in Congress seek to pass without Republican support. Their plan is to first pass a budget resolution to set up “reconciliation,” a special provision that allows Democrats to pass progressive priorities without Senate Republican support. That would enable them to subsequently enact the spending bill without the fear of a filibuster.

“The amount of spending the government has proposed is unsustainable. It will leave the American people with higher debt, insurmountable inflation, and increased taxes. Furthermore, it does not address the current issues that must be fixed with Social Security or Medicare,” says Bob Carlstrom, president of AMAC Action, the association’s advocacy arm. “We’re asking our 2.4 million members to tell their representatives to take measures to undermine this deceitful ploy.” He invited them to send an email message available here.

So, what is in the spending bill? According to Carlstrom, it’s full of giveaways:

  • Two years of taxpayer-funded community college;
  • Government-mandated and funded paid family leave from private-sector jobs;
  • Extended unemployment benefits to keep workers on the sidelines and out of the workforce;
  • More government subsidies to purchase private health insurance;
  • Permanent refundable tax credits for the IRS to pay individuals more in refunds than they paid in taxes;
  • Increased taxes on small businesses that will cost jobs and close businesses;
  • Creation of a double death tax on top of the existing death tax;
  • Increased taxes on individuals to further slow economic growth.

In addition to pricey programs, Politico says that the spending bill will also help progressives to create the means for illegal immigrants known as Dreamers, those who have temporary protection and farmworkers to become citizens– and voters.

“Lawmakers like House Budget Chair John Yarmuth (D-Ky.) are worried, however, that the policies can’t be included in a reconciliation package, due to the special budget rules that guide the filibuster-proof process.”

In addition, Politico notes that “The push comes as the Biden administration has failed to rally enough support, even among Democrats, for the president’s sweeping plan to revamp the U.S. immigration system for the first time in more than three decades.”

There’s been a lot of boasting and bragging going on since the Democrats announced their spending plan, but not enough discussion of how the Biden administration will come up with the funds to pay for all of the spending plan’s bells and whistles.

“They say that the funding will come from hiking the taxes on the rich and corporations so that they won’t have to increase the taxes on the average worker. In fact, they already have a plan to increase the corporate tax rate to 28% from 21% and a nearly 100% hike in the capital gains tax, from 23.8% to 43.4%. But the reality is that there will be a trickle-down effect on all of us,” says AMAC’s Carlstrom.

He notes that yesterday the U.S. Senate Committee on Finance issued a new analysis by the non-partisan Joint Committee on Taxation (JCT) showing that middle-class Americans will be among the hardest hit by corporate tax hikes. The analysis concluded, “that increasing the corporate tax burden would disproportionately harm U.S. workers, retirees and small businesses, including 1.4 million small business C corporations and the 98 percent of Americans who earn less than $500,000.”

Carlstrom also cites an analysis produced by the National Association of Manufacturers [NAM], which shows that such plans will hurt the economy, in general, and result in a loss of a million jobs in just two years. The NAM report states that “the average annual reduction in employment would be equivalent to a loss of 600,000 jobs each year over 10 years.”

He says the corporate taxes proposed by the Democrats will have a decidedly severe impact on the backbone of America’s economy, small businesses, and the Tax Foundation agrees.

The Foundation says, “policymakers should recognize that corporate tax hikes will not only impact large firms but many smaller and younger firms as well. Considering that many of these smaller firms are significant contributors to net job growth, rising corporate taxes at this time would not be conducive for a speedy economic recovery.”

And then there is the report of House Ways and Means Committee published in May that exposed a plan by Democrats to do away with “a longstanding provision of U.S. tax law, in place since the Revenue Act of 1921.” It states that when assets such as farms, factories, and other small businesses are transferred at death to an heir, a capital gains tax is not imposed. In other words, they seek to impose a second death tax.

Based on an analysis by the Family Business Estate Tax Coalition, it shows that:

  • Such a supercharged second death tax would harm workers, killing “80,000 jobs in each of the first ten years, and 100,000 jobs each year thereafter.”
  • For every $100 of revenue raised by repeal via tax at death, the wages of workers would decline $32. Nearly one-third of every dollar of revenue raised comes out of the paychecks of U.S. workers.
  • It would decrease US GDP by $10 billion annually or $100 billion over 10 years.
  • And it would gravely harm family-owned businesses with significant financial and administrative problems, “limiting the business’ viability as an ongoing concern.”

In conclusion, AMAC Action’s Carlstrom says, “So much for the notion that we shouldn’t be concerned about the idea of spending $3.5 trillion to pay for progressive socialist giveaways. The economic menace of the Biden administration is real, and it reaches Americans in all walks of life. It’s noteworthy that since he took over in the White House, backed up by progressive socialist wannabes, we’ve seen rampant inflation — the kind that makes it hard and, in some cases, undoable for an average family to pay their bills and purchase the essentials. Inflation has gotten so out of hand that 83% of Americans are feeling the pinch. So much for the myth– no, the lies being spread by Schumer, Pelosi and Biden that the average American won’t have to pay for their spend-a-thon; the rich will pick up the tab.”

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