President Biden’s big government legislative agenda will kill 5.3 million jobs and generate $4.5 trillion in debt, according to a Monday study by the Texas Public Policy Foundation.
The study also suggests the United States’ gross domestic product (GDP) will be reduced by $3.7 trillion, nearly the cost of the massive $3.5 trillion reconciliation package.
Biden’s legislative agenda will additionally cost American families a combined $1.2 trillion in reduced income via tax increases to pay for the costly package, the study reveals.
The study also broke down the costs of Biden’s social welfare spending by state, analyzing Texas, Arizona, and West Virginia.
Arizona, where Sen. Kyrsten Sinema (D-AZ) resides and who is opposed to much of Biden’s massive tax and spending, will absorb $97 billion of the cost and the destruction of 115,000 jobs.
West Virginia will absorb $24 billion of the cost and the destruction of 29,000 jobs. Those costs are set to effect the state of Sen. Joe Manchin (D-WV), who has also suggested he is opposed to the expense and a few radical left provisions of the reconciliation package.
Texas will absorb for more than both states combined. The lone star state will be saddled with $394 billion in cost and 467,000 jobs lost.
The Texas Public Policy Foundation’s study summarizes the following impacts of the tax and spend agenda:
- Top marginal income tax rates with federal, state, and local taxes are over 65%.
- Corporate tax rate up by a quarter to 26.5% for third highest combined rate of 30.9% in OECD.
- Marginal tax rate increase of 13 percentage points on some households.
- Capital gains tax rate up by 25%.
- Marginal income tax rate on some small businesses raised by 24%.
- Multiple severe marriage penalties are imposed.
- Effective tax rate on large estates before state and local taxes is 61.1%.
- Taxes raised on tobacco and vapor products, primarily used by those earning less than $400,000.
- International taxes on businesses raised by over 20%.
- $6.89 tax raised per barrel on imported petroleum and increase tax with inflation.
- Capital gains tax rate increased, unrealized gains taxed at death, death tax increased, and step-up basis eliminated.
- Cap on SALT deduction removed.
- Redistributing $6.2 trillion in government spending slows growth.
The following is the impact from the legislation on families, according to the study:
- National Debt increase is an extra $35,439 in debt on each American household.
- Jeopardizes family farms and businesses when original owner dies.
- Marriage penalty on small business owners as high as $130,200 annually.
- Median family’s income drops by $12,000.
- Removing cap on SALT deduction: Middle class family receives just $15 while wealthy Democrat donors in blue states receive $150,000.
The impact on business is as follows, the study details:
- Lost investment of $663 billion.
- Taxing unrealized capital gains yields 43.4% less revenue than expected.
- Corporate tax rate hikes reduce wage growth by 23.1% for employees.
- International tax rate hikes reduce full-time employment by 12,000 jobs.
- U.S. tax competitiveness would fall from 21st to 30th.
Follow Wendell Husebø on Twitter @WendellHusebø