FACT CHECKING BIDENS CLAIM
June 8, 2021 - Douglas Myser
Fact checking Bidens claim. President Joe Biden has claimed that the proposals he has set forth don't add a single penny to the National Deficit. Marc Goldwein, Senior Policy Director for the CRFB said that "it's great" the administration aims to have the plans pay for itself but he would prefer a different timeframe. Historically, the target window for a budget to become deficit neutral is 10 years but with these plans, it's 15. "We're concerned", Goldwein said. "That's an awful long time period. And a lot can happen between now and then." For example, if Republicans get elected and repeal certain tax laws, and go back to giving tax cuts for the 1%, the entire amount could eventually be put onto the deficit. Fact checking Bidens claim.
"When they put down that marker, "we're gonna pay for this 100%," and then they find that it's hard to get those taxes through," Mason said, "you end up with a small program than the country needs and that's the danger." The mechanisms to pay for the plans provisions have faced pushback from Republicans and some moderate Democrats and Biden is already showing a willingness to negotiate. The President suggested he's open to increasing the corporate tax rate from 215 to somewhere between 25 and 28%. A smaller increase would mean less tax revenue, which could further delay the timeframe for deficit neutrality. If passed the American Jobs Plan will temporarily increase deficits in the short term, but reduce deficits in the long term, due to the increased growth in the economy, according to the CRFB.
An increase in the number of jobs, better paying jobs, and increased tax revenue will also occur. The IRS is getting an infusion of money to go after large number of individuals and corporate accounts that have become delinquent over the last few years, especially during the Covid pandemic. The number of Americans who will need Tax Resolution Services with an increased and aggressive IRS, will increase. The IRS will also be targeting those with large incomes, and those hiding assets overseas.