In the Battle Between the Left and the Far Left, They’re Both Wrong

This new spending number that is circulating at $1.75 trillion is phony boloney. It s larded with gimmicks and not credible. The Wall Street Journal s editorial today called it a jerry-rigged budget framework. They are right.

Basically, the Democrats are scoring permanent programs as one-year temporaries. Like extending the child-care tax credit for a one-year cost of $110 billion, when in fact it s a 10-year cost of well over $1 trillion. Ditto for expanding Obamacare subsidies. And expanded Medicare and Medicaid services.

The Journal puts the cost at $4 trillion. If the Democrats were to disclose their true intentions of a permanent and reckless expansion of the government welfare state, it would score far higher.

Meanwhile there are these late entry or reentry tax hike proposals, such as a corporate minimum tax for domestic and foreign company income, and higher marginal tax rates, such as a 5% surtax on income above $10 million and 8% above $25 million.

This, by the way, includes basically the backbone of American business, S-corps, LLCs, and wholly owned proprietorships that are the backbone of American business. This would be a huge discouragement for investment, capital formation, job creation, and higher wages.

In blue states like New York and California, the top marginal personal tax rate would come to around 60%, higher than Europe. I m assuming the goofy billionaires wealth tax on unrealized capital gains has finally been laughed off the table. but who knows?

So I m taking the Napoleonic position. I know he could be a megalomaniacal totalitarian, but even those people have occasional wisdom. Never, he d say, interfere with an enemy while he s in the process of destroying himself.

So Joe Biden is going to Glasgow empty-handed. No tears from this source. You know what I m going to say. Save America. Kill the bill.

via www.nysun.com

Lawrence Kudlow. Sensible as usual.