Joe Biden has no problem draining the public purse.
He’s trying to ram through everything in his radical agenda.
But Biden’s socialist spending scheme just got stopped dead in its tracks.
Biden and his Democrat pals have been hard at work redefining “infrastructure” to mean whatever Democrats want.
And Biden has spared no time crafting a plan to increase government spending by $6 trillion to pay for every liberal pet project imaginable.
Unsurprisingly, he will have to fund this behemoth of a “plan” by a host of new tax increases.
According to the White House, massive amounts of government spending will boost productivity and economic growth.
But the Congressional Budget Office just threw a wrench in that narrative.
In a paper titled Economic Effects of Financing a Large and Permanent Increase in Government Spending, the CBO analyzed the economic impact of massive tax increases being used to fund a large spending increase.
What they found comes as no shock to anyone with common sense.
“After 10 years, the level of GDP is between 3% and 10% lower than it would be without the increases in expenditures and revenue,” the paper found.
Put another way, it means it would kill economic growth.
As the Washington Examiner reports:
The CBO paper also found that tax increases on capital, the type of tax increases proposed by the Biden plan, would have the most negative impact on long-term economic growth. The general finding of the CBO analysis was that increasing taxes to fund increased government spending leads to lower output, economic growth, and personal consumption. According to the CBO paper, tax increases reduce incentives to work and save, affecting how much the economy produces and businesses invest and how much people consume.
Granted, the CBO report doesn’t analyze Biden’s plan specifically, but it comes remarkably close to the spending bills proposed.
It is doubtful that the Democrats will heed the warning the CBO has given out.
That’s because it isn’t about helping the American economy, it’s about growing the government at any cost.
Stay tuned to Right News Wire for any updates to this ongoing story.