In the face spending that is already fueling a 31-year high inflation rate, major supply chain disruptions, and record national labor shortages, the potential taxes being proposed by the Biden Administration and his allies in Congress in the Build Back Better bill will touch every American in some form or another while jeopardizing continued economic recovery from the pandemic and shutdowns. The supposedly $1.75 Trillion price tag for the reconciliation spending binge of leftist pet programs and/or agendas – has already been challenged as being too low. The Committee for a Responsible Federal Budget (CRFB), a nonpartisan organization with an emphasis on federal finances, has said the Democrats bill will actually cost around $2.4 trillion. [In addition, the Wharton School of Business has estimated the figure to be nearly $4.0 Trillion, with American taxpayers incurring $1.56 Trillion in new taxes; a far cry from the President’s claim of it costing ZERO!]. Either figure could be a deal breaker for the so-called moderate House Democrats that accepted a compromise with Speaker Pelosi and the leftist wing, to hold a vote . . . if the Congressional Budget Office (CBO) came back with a score comparable to the advertised $1.75 Trillion.
The CBO is a nonpartisan body tasked with scoring an estimate of the true cost of legislation and its impacts on the economy. It is this “scoring” that has not yet been produced that moderates are seeking before they vote on the reconciliation package. Reportedly, the Director of CBO explained the delay in processing saying: “The analysis of the bill’s many provisions is complicated.” Although he promised that “[the] CBO will provide a cost estimate for the entire bill as soon as practicable.”
As for ways to pay for this massive spending proposal, the Build Back Better bill is loaded with increases, new approaches, and slight of hand to cover the debt-busting potential. The accompanying chart/table highlight the more impactful possibilities buried in the 2,000 page plus legislative proposal.
SEE Summary of Tax Proposals / CIRT Advocacy Center.