Biden’s team is ripping as “economically illiterate” after Biden, in response to Trump’s claim that his administration would spend $1 trillion rebuilding the country’s infrastructure, said Biden’s Build Back Better plan “costs zero dollars.”
“Biden’s Build Back Better plan costs zero dollars,” Biden spokeswoman Kate Bedingfield told Axios in an email. “We invest $1 trillion in infrastructure by 2022 and we pay for it with 25 years of taxes on corporate overseas profits and a 7% annual tax that falls entirely on the wealthy.”
The Trump campaign, however, says this is evidence of how Obama/Biden economic policies failed.
“This is yet another example showing how economically illiterate Barack Obama and Joe Biden are as they never met a tax hike they didn’t like,” Trump 2020 adviser Andrew Bates said in a statement to The Daily Wire. “It also shows why Americans will reject them once again come November 2020, as they will vote for a President who knows how to create jobs and grow the economy so all Americans can thrive.”
In an op-ed in the New York Post , former Trump advisor Stephen Moore argued that Biden’s claim “sounds nice,” but is actually terrible.
“But a tax hike of this scale would have a devastating impact on the economy,” Moore wrote. “Economic growth would slow by at least 1 percent or more each year over 10 years for every 0.5 percent rate hike. We could see 500,000 fewer full-time jobs by 2022.” He went on: “On average, these hikes will reduce GDP by almost 3 percentage points for every one percentage point increase in the corporate tax rate, according to the nonpartisan Tax Foundation. This is because higher taxes discourage entrepreneurship and investment in new businesses. Higher taxes on capital mean fewer jobs are created, so tax hikes will slow wage growth.”
Moore charged that “Biden’s plan would have a devastating impact on consumer spending,” pointing out that “businesses may cut back on their investments if Biden raises corporate taxes by 50 percent.” Citing an analysis from The Heritage Foundation, Moore said that while the corporate tax hike would raise some $224 billion over ten years while creating 500,000 full-time jobs, it would also reduce GDP by more than $700 billion annually after accounting for its stimulative effect during the 10-year window. “For every dollar of new revenue raised by the corporate tax hike, GDP would fall by $1.15,” Moore wrote. “Not exactly a recipe for economic growth.”