Build Back Better is a win-win-win proposition
President Biden’s Build Back Better program is far from the deficit generator that Texas-based economist Ray Perryman falsely claimed in a recent guest column.
First, before Senator Manchin succeeded in chopping up much of the proposal, the bill provided for $ 350 billion per year over ten years, for a total of $ 3.5 trillion over ten years. By comparison, the total US military budget exceeds $ 1 trillion per year, which would mean more than $ 10 trillion in military spending over the same ten-year period. If Mr. Perryman was really interested in reducing the deficit, he should focus on military spending, much of which (I know from my own experience in the military) is pure waste.
Second, there are a lot of things that can and should be done that would pay more than President Biden’s proposal. Dozens of the country’s largest and most profitable companies pay ZERO corporate taxes. Dozens, if not over 100, billionaires are finding plenty of ways to sequester their income to make sure it isn’t taxed – perpetual trusts are a very popular way. Taxing corporations that no longer pay taxes and eliminating the possibility of hiding hundreds of billions of dollars in these trusts would generate tens, if not hundreds of billions of dollars in federal revenue.
Third, Mr. Perryman continues to suggest that higher corporate and personal income taxes would hurt the economy. If anything, the exact opposite is the case. We had a very strong economy in the 1950s and into the 1960s, when corporate taxes were much higher than today and the maximum rate on “unearned income” (now called ” capital gains â) was 90%. The rich stayed rich, but we had a much more equitable distribution of wealth with a rising standard of living and a growing middle class. Either Mr. Perryman knows these things and is intellectually dishonest, or he is so profoundly ignorant that no one should pay attention to any of his “analyzes.”
Fifth, the US government pays tens of billions of dollars a year in grants to businesses. The most obvious and glaring case is the fossil fuel industry. If Mr Perryman was genuinely interested in tackling climate change, he would point out that these subsidies should be phased out yesterday or sooner.
Sixth, off-shore companies also derive profits from foreign investments, which prevents these profits from being taxed. This too should have been finished yesterday or earlier.
Seventh, the wealth of the nation is increasingly held in less and less hands. This poses an existential threat to our economy and our nation. As has been proposed as a way to help finance Build Back Better, a wealth tax is absolutely necessary to reduce the growing gap between the income and wealth of the super rich compared to the income and wealth (which is clash with ZERO) of the working class. . We know there is a tipping point where wealth becomes so heavily concentrated in the hands of the few that the economy will literally collapse. It is conceivable that we are approaching that tipping point.
Eighth, President Biden’s Build Back Better proposals will get more people into the workforce as child care becomes affordable. I commend Mr. Perryman for pointing out that as our population ages and birth rates decline, we face chronic labor shortages. Anything that allows more people to enter the workforce is a good thing. These people will earn income and pay taxes on that income. Unlike the rich, they have limited means to avoid taxes. Therefore, this increase in federal revenues will help fund programs that allow more people to work.
In short, Mr. Perryman could not be more wrong. The tax code changes discussed above (all of which have been proposed as a way to pay for Build Back Better) will bring in far more than the $ 350 billion a year that Build Back Better would cost if passed as originally proposed.
These programs will be of tremendous benefit to the people of the United States. Our elderly citizens should have access to eye, dental and hearing care through Medicare. It should have been done decades ago. Families should have paid time off to care for an elderly family member or to give parents time with their newborns. The Child Tax Credit will allow more people to enter the workforce, earn income and pay taxes. Universal preschool and kindergarten will help improve our deteriorating education system AND allow more people to enter the workforce.
Build Back Better is a win-win proposition. It somehow benefits maybe 90% of the population. In fact, even the richest 1% or 2% can benefit from having workers to fill positions in their companies, and more people with more money who would be able to purchase the products and services provided by them. the companies that generate the wealth of billionaires. Mr. Perryman should know all of this.
Editor’s Note: The above column was written by writer, researcher and educator Samuel Freeman. It appears in The Rio Grande Guardian International News Service with permission of the author. Freeman (pictured above) can be contacted by email via: [emailÂ protected].
Quality journalism takes time, effort andâ¦. Money!
Producing quality journalism doesn’t come cheap. The coronavirus has caused a drop in income in newsrooms in the United States. However, The international information service of the Rio Grande Guardian is committed to producing quality news reporting on issues of concern to border residents. The support of our members is essential to ensure the achievement of our mission.
Can we count on your support? If so, click HERE. Thank you!