(FreedomJournal.org)- Everyone knew that Democratic presidential candidate Joe Biden was gearing up to spend some money.
Until Monday, though, it was unclear exactly how much.
Biden released a spending plan totals $5.4 trillion, making it the largest spending package in decades, according to the Penn Wharton Budget Model. Even with the nation having a deficit that hasn’t been seen since the end of World War II, Biden is still planning a massive outlay of money.
Biden’s proposal is far less than some of the more progressive Democratic presidential candidates such as Elizabeth Warren and Bernie Sanders were proposing. Still, it’s more than double what Hillary Clinton revealed back in 2016.
According to the Penn Wharton analysis of Biden’s proposal, it would raise $3.4 trillion in new tax revenue by fiscal year 2030, with roughly 80% of that coming from the top 1% of all earners. After accounting for improved health effects in the country and macroeconomics, this plan would actually shrink the economy by 0.4% in 2030 while increasing the federal debt by 0.1%.
The longer-term projection is rosier. The debt would drop by 6.1% by 2050 and the economy would go up by 0.8%. This is due mainly to the fact that the spending under Biden’s plan would drop dramatically after the first 10 years since his proposal would allegedly stimulate the employment sector.
Of course, the issue with this part of the analysis is that future presidents can come in and change anything with new spending plans of their own. There’s no guarantee Biden would get even eight years in the White House — if he’s elected at all in 2020. Beyond that, there’s no guarantee whoever would follow him in office would keep his plan in place for another 20-plus years to reach that 2050 date.
The Biden camp took issue with a particular aspect of the Penn Wharton analysis as it related to taxes. The report found that households that have an annual adjusted gross income of $400,000 or less would see an average decrease of 0.9% in after-tax income. This would happen mainly because of Biden’s proposed hike on corporate taxes.
At the same time, Biden’s plan would see those who earn more than $400,00 see a cut of 17.7% in their after-tax income. While the divide is large between these two income brackets, it still shows that Biden’s tax plan is going to negatively affect everyone’s wallets.
The Biden campaign said the report didn’t include tax credits he’s proposing for the middle class. They also didn’t agree that the increase in corporate taxes would result in higher taxes on American workers. The campaign’s deputy rapid response director, Michael Gwin, tried defending the proposal, saying:
“Biden is committed to paying for the ongoing cost of his bold agenda in the long run by making sure big corporations and the wealthiest Americans pay their fair share — with no one making under $400,000 seeing an increase in their taxes.”
But, Penn Wharton is one of the most respected business schools in the world, and also an independent body that has no partisan ties.