Biden Considers Higher Taxes

Bloomberg shares this...

President Joe Biden is planning the first major federal tax hike since 1993 to help pay for the long-term economic program designed as a follow-up to his pandemic-relief bill, according to people familiar with the matter.

Unlike the $1.9 trillion Covid-19 stimulus act, the next initiative, which is expected to be even bigger, won’t rely just on government debt as a funding source. While it’s been increasingly clear that tax hikes will be a component -- Treasury Secretary Janet Yellen has said at least part of the next bill will have to be paid for, and pointed to higher rates -- key advisers are now making preparations for a package of measures that could include an increase in both the corporate tax rate and the individual rate for high earners.

With each tax break and credit having its own lobbying constituency to back it, tinkering with rates is fraught with political risk. That helps explain why the tax hikes in Bill Clinton’s signature 1993 overhaul stand out from the modest modifications done since.

For the Biden administration, the planned changes are an opportunity not just to fund key initiatives like infrastructure, climate and expanded help for poorer Americans, but also to address what Democrats argue are inequities in the tax system itself. The plan will test both Biden’s capacity to woo Republicans and Democrats’ ability to remain unified.  READ MORE

Is BIGGER Better?

The Founders distrusted strong governments. Their own experience and study of history taught them that overly powerful governments turned oppressive. But they also knew a government was necessary...

And ever since 1776, there has been a struggle here in America between those politicians who want a strong/large federal government and those that want a not to strong/small federal government leaving the rule of the nation, for the most part to the STATES themselves and the responsibility of our Federal Government to provide protection and deal with the rest of the world.

And so, two political parties we have...  one advocating a small government the other one advocating a large government.  Large government require more taxes from the citizens to manage and offer more services to the people where the opposite is true for large ones.

It is the people who decide which one they want by their VOTES...

However, sometimes the people are ignorant of what their vote does to/for the country nor are they immediately aware of any unintended consequences of their votes.  It is only later that they realize what they have done and must decide what to do about it next time.  Unfortunately, once something gets put into the Federal Budget, it is difficult to remove it by the politicians since they do not always respond to the wills of the people.

LARGE GOVERNMENT has more control over the people and has more of an opportunity of telling them what to do and how to do it as well as when to do it...  and, are penalized for not doing it as well.

We can read in our history books when our federal government decided that its citizens should no longer drink alcohol...  our federal government had all kinds of hell to pay for that decision until they removed the law and now Americans can drink as much as they want.  Marijuana is turning out to be the same type of situation, it's just that the STATES have decided to go up against the federal government on this one...  and, our federal government is more or less DOING NOTHING...

Letting the people through their STATES decide can be dangerous as the vast majority of people still do not know what is really good for them or not good for them....  and, once they do discover the answer to that question, it might be too late because of the actions already taken.