(TruthandLiberty.com) – In September, President Biden and White House Press Secretary Jen Psaki generated buzz when they claimed the president’s partisan $3.5 trillion Build Back Better plan would cost the American people zero dollars. They claimed the legislation would include enough tax increases on businesses and corporations and close tax loopholes to pay for the massive spending bill. Moderate Democrats say they won’t vote to increase deficit spending and burden future generations.
Jen Psaki was unwilling to elaborate on how Democrats' spending plan wouldn't raise the national debt. https://t.co/tcrlPCxA6u
— The Western Journal (@WestJournalism) October 20, 2021
Nearly a month later, the legislation is changing under the weight of Democratic infighting. As Centrist and Progressives negotiate, they may end up with a bill that costs significantly less than initially proposed. On Tuesday, October 19, a reporter asked the press secretary if she stood by her previous statement the national debt won’t grow by even a single dime if the legislation passes. Psaki said that was correct. Pressed further, she buckled down and insisted the press should take her word for it.
The Committee for Responsible Government estimated that the real cost of the initial $3.5 trillion plan would come in at $5 trillion to $5.5 trillion over ten years. It’s not clear the Democrats will agree to hike corporate taxes high enough, remove loopholes or create new ones to pay for any agreed-upon legislation. Some economists worry if taxes become too steep on businesses, it could make America one of the most taxed countries globally and hurt the US economy.
It’s too soon to know what could be in an agreed-upon package and what it could cost. At this point, parties may not reach a reasonable agreement at all.
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