Biden’s Historic Tax Hikes Don’t Even Fund Infrastructure Projects

As expected, President Biden detailed a plan earlier this week to implement what may be the largest tax increase in American history to pay for Green New Deal spending. It should be a nonstarter in Congress.

Just 5% ($115B) of the $2.3T outline would actually go to build or improve roads, highways, bridges and other traditional public works, while only 2% ($42B) is for airways, waterways, and ports. Meanwhile, over $600B is devoted for the kind of Green New Deal programs that will eliminate jobs, destroy our energy industry, and hurt families. The Wall Street Journal editorial board provided a detailed breakdown of the misguided spending priorities of this outline:

Compounding the pain families will feel due to this free-wheeling spending on far-left priorities is the fact that the proposal includes $1.8 trillion in tax increases that are estimated to eliminate over 150,000 jobs and will take money from middle-class Americans at a time when our economy is still recovering. In addition to their above piece, The WSJ ed board also put into perspective how dangerous a historic tax hike of this magnitude would be:

Following President Biden’s speech, Republicans quickly condemned the outline of his plan. Instead of detailing a proposal that focuses on passing bipartisan infrastructure legislation that both parties agree is needed, his approach represents a Trojan horse, using the “infrastructure” label as the means to pass the largest tax increases in history and enact the goals of the Green New Deal. See below for more on some of the absurd spending included in this plan:

  • $174B in subsidies for electric vehicles
  • $213B in subsidies for retrofitting homes
  • $10B to create a “civilian climate corp”
  • $20B to advance racial equality and environmental justice
  • $100B to, in part, make school lunches greener

This proposal is not about infrastructure. It’s not about creating jobs. It’s another example of Democrats using an issue to advance their disastrous policies. After spending just 9% of their nearly $2T bill on COVID relief, it’s no surprise that they would focus only 5% of a $2.3T proposal on the kind of real infrastructure projects the country needs, while using billions of dollars in taxpayer money to fund their liberal priorities. Increasing taxes on middle class Americans only makes things worse, and demonstrates why the policy agenda from President Biden and congressional Democrats is so bad for the American people.