Biden’s infrastructure plan ... He wants $3 trillion!

#1

I heard the radio today that Biden wants to spend $3 trillion on infrastructure repairs. We know that Biden is senile and insane, but what about rest of the Democrats?

Let me remind you that a trillion is a billion times a million. There is not enough wealth in this country that can be converted to cash to pay for all of this in taxes. Sure, a very wealthy person can have a net worth of a billion dollars, but most of that will not be in cash. Its the value of the assets they have minus their liabilities. Converting that new worth to cash is not as easy as a “progressive” might think, if they think at all. Most of them just react out of hate and ignorance.

Many years ago, the late Senator Everet Derkson talked about, “A billion here, a billion there, and after a while you are talking about some real money!” The power hungry “progressives” have now multiplied that by a million.

If we keep this up, the dollar won’t be worth a cup of warm spit. The Democrat Party has become like a bunch spoiled children who who just smashed a piggy bank and think they are now entitled to go on one wild spending spree after another.

#2

Couple thoughts. The 2017 tax cuts cost nearly 2 trillion, the CARES act was 2.2 trillion, we spend nearly 1 trillion annually on defense. The money isn’t that outlandish. Investing in our infrastructure will make business more efficient and reduce waste, this is an investment in our country. Also, a trillion is a billion times 1000, not 1 million.

#3

And we will spend this on top of those things. Of course raising taxes will lower economic activity, but who needs taxpayers when you have more debt?

Your Democrat handlers are are giving you very good sound bites. Perhaps you should study what happened in Germany in the 1920’s, but I know you guys have been taught that studying history is wrong and useless. All of history is wrong; “woke” has all of the answers.

I am old and will be dead. You are young and will have live with what you are creating.

#4

So, do you think our infrastructure is fine as it is? Because if not, it costs a lot of money to rebuild a nation’s worth of infrastructure.

#5

I don’t think it’s fine. I think that the states need to step up too.

Obama got a bill passed that was supposed to fix this, but when it didn’t happen, he made a joke of it with the CEO of General Electric that they didn’t have the shovel ready jobs ready. The money went to the teacher’s unions. The same thing applies here. When you have this much money out there, corruption will follow.

I know you think government is run by omnipresent angels. Your little professors told you that over and over until it has become your religion. When you have unlimited funds authorized, corruption will follow. You can bank on it.

#6

“nearly $1 trillion in spending on the construction of roads, bridges, rail lines, ports, electric vehicle charging stations, and improvements to the electric grid and other parts of the power sector.”

So the other +$2 trillion is being spent on something other than infrastructure.

President Biden proposes paying for this by raising corporate tax rates to 28%.

Which combined with State taxes, makes the average corporate tax rate in the U.S. 32.34%. Which would be the highest in the world.

Do you want an economic recovery? As that doesn’t sound like it.

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#7

Yes, the economy is trying to emerge from the Covet-19 recession, and the Democrats want to increase taxes so that our corporate rate is once more the highest in the word. Democrats don’t understand who pays the tab for their spend thrift notions. It’s the people who get up and work every day while the Democrats sit in Washington and tell everyone else what to do.

The mean time, the government can’t do it’s job. @Gene has called for more gun control. Yet the guy who just killed 10 people in Colorado had a notice out on him that he no business buying a gun. The FBI dropped the ball and didn’t get the word out. You can’t enforce background checks if the agency that is empowered to enforce the law does not do its job.

#8

I submit that there’s a gap here between what is needed and what is available.

#9

Correction, the highest marginal rate. The real rate is much lower.

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That said, I’m not a fan of cooperate taxes. Most if not all taxes are simply passed on to consumers.

Weimar collapsed, not because it created too much money, but because it capacity to produce was destroyed and the Ruhr Valley, the last area of real industrial productivity in the country was annexed when Germany couldn’t continue to pay reparations.

No, it wasn’t money creation that caused hyperinflation in Germany, rather it was the destruction of its capacity to produce and operations that were forced upon the nation.

Talk about not understanding history.

#10

Come on. Every democrat knows money grows on trees when it it’s being spontaneously created and printed by the government.

Stupid republicans. And besides, if we need more money we can just completely get rid of the military so we can be overrun by China or whoever. That’s a fast and easy way to get us some of the sweet sweet communism. :grinning:

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#11

Please don’t pretend to care about the debt now that Dems are in control.

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And take note this does not include COVID spending.

#12

It doesn’t matter, the effective tax rate comes up with it, and at even 22-23% we will be higher than Japan who is the current #1. Biden also plans to “close loop holes” for businesses who operate overseas and pay taxes there.

The outcome is the same; you dissuade people from starting businesses, you dissuade businesses from coming here. You’ll encourage businesses to invert nationality and move their HQs overseas.

Does any of that sound good for our economy?

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#13

Remember, I’m not a fan of corporate taxation, that said:

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If the government spends a collective $3 trillion in stimulus plus its regular spending, yes, I think lots of people and companies, foreign and domestic will want a piece of that action.

Taxes are a method of removing some of the money the government has created in order to prevent inflation.

#14

You’ll need to parse yourself better here: Statutory = marginal.

When you look at the effective rates, Japan is in the top.

No, we see the results of the last stimulus of this kind under TARP.

Government does not know how to target this money effectively, it creates bursts of activity that simply dies out the moment the money itself stops, creating micro-recession in the places the stimulus touches.

Labor & capital will have to re-allocate, again, to places in the economy actually producing value. Leaving behind the places that were pretending as if they were thanks to Government funds.

#15

Initially, you were talking about effective rates, I pointed out you were mistaken

There’s a lot to unpack there.

First, at least $1.9 trillion is in direct payments, thus any money deployed from that point will by real people, not the government. Further, you act as if money, once spent disappears completely ignoring velocity.

Even if the government paid me to make widgets, the money I receive I’ll use some of the money I receive in my community and that money will change hands several times creating real wealth.

On the other hand, if the government directs the repair and upgrade of critical infrastructure and the creation of new infrastructure, the value of that can be realized for decades.

In fact, if each dollar changes hands 5 times, the government is only the first step in that process.

#16

No, I listed marginal rates, and you switched it to effective.

I then pointed out Japan is on top with effective rates.

And further more, effectives rates being small doesn’t matter, when we’re still going to place ourselves on top as a consequence of raising the rate.

So my point remains. This makes us worse off. Effective rates being lower is neither here nor there.

That’s not the $3 trillion plan, that’s something else.

Again:

Multiplier has been studied, it’s anemic, and doesn’t create, per dollar, more than the 1 dollar we spend.

At least, not in any stimulus up till now.

Pity that’s less than a 1/3 of what the money in this plan is being spent on.

Pity too that infrastructure can also be wasteful.

When there’s an institutional interest in building things, not for their own merits, but because it gives the public work force something to do, you get waste.

You get Detroit building super highways they don’t need, you get the Corps of Engineers building dams
in the wrong places, and you get the quintessential bridges to no where.

You want this to be ideal, I go by the track record; Government is terrible at allocating resources.

I agree giving money to the consumer directly is the best approach, but that’s not what the $3 trillion plan is doing. I also agree fixing poorly maintained infrastructure is a priority, but that should have come out of funds for said infrastructure, tied to fees for their use.

Allocating money on the back end like this is poor management, and it’s what sneaks in the unproductive constructions.

#17

Ok, I was confused then, I thought you were making the opposite argument.

However, let’s look at:

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Doesn’t seem to make your argument that US cooperate rates are oppressive.

Further, if we agree that cooperate taxes are passed on to customers, then the tax is really just part of an overall tax scheme.

#18

So you didn’t read my post then:

This is about the proposed tax hike, not where tax rates are right now.

Biden by raising it, will ensure we’re #1. I don’t care if you call that “oppressive”, the problem, is that’s its unattractive, and uncompetitive.

#19

You shouldn’t assume that conservatives all agree with everything Trump did.

#20

But it’s safe to assume that dems have no grasp on reality. Get rid of all guns and take away the military and we’ll see just how peaceful the rest of the world is.