The 2020 election and all the foolishness that came with it seem to have left the Republican Party timid. This is a pretty typical turn of events for the first 100 days of a new presidential administration, but it seems the GOP is taking this to the next level. The Republicans are offering only token resistance to President Biden’s stimulus plan, and he seems more than ready to take advantage of their disarray.
Article by Antony Davies and James R. Harrigan from FEE.
Biden is driving his stimulus plan—a plan that features all the worst ideas of an unshackled Democratic party—through Congress with relative ease. The Republican party seems uninterested, or maybe even unable, to offer any kind of meaningful resistance.
What are the hallmarks of the president’s stimulus plan? He proposes a payment of $250 per child per month, which yields around $3,500 per eligible household per year. For a one child household, that’s almost the same as what the earned income tax credit would yield.
The EITC is not a rebate, but a credit. People get it regardless of whether they paid taxes in the first place. For example, a person who owes $4,000 in federal income taxes before the EITC, and receives a $3,500 EITC, will only owe the IRS $500. Meanwhile, a person who owes $1,000 before the EITC, and receives a $3,500 EITC will get a check from the IRS for $2,500. The EITC isn’t designed to reduce people’s taxes; it’s designed to give them money.
President Biden estimates that his plan, which would approximately have the same effect as doubling the EITC, will cost around $2 trillion. And on this point the Republicans are derelict. If even one of them had an ounce of curiosity and access to a calculator, he would be able to figure out that for $2 trillion, the government could cut a check to every household in the US for more than $16,000. If the government only cut checks to the poorest one-third of households, each would receive almost $50,000.
Only a politician could design a program to cost as much as giving every poor household $50,000 and have it actually give every poor household far less. It should be clear that this sort of thing is designed at least as much to empower the government as it is to provide relief to people in financial distress. As usual, the government looks after itself first.
Given that state and local governments have forced businesses to close, a government handout might be the second-best option (next to allowing businesses to reopen). But the stimulus doesn’t come for free. Someone must pay the $2 trillion price tag, so it’s important that we keep our eyes open with this level of spending.
President Biden says “corporations” and “the rich” will pay. In this he takes his place in a long line of Democratic politicians willing to spin this lie.
In 2019, the richest 1 percent earned around $2.5 trillion and paid around 30 percent of that in federal taxes. That’s $750 billion. Doubling the one-percent’s taxes wouldn’t even raise half of what Biden’s stimulus will cost.
As much as people like to talk about the rich paying “their fair share,” no reasonable person believes that politicians stand a chance of coming close to doubling the one-percent’s taxes.
First, too many politicians belong to the one-percent themselves. Second, more than 35 percent of federal income tax revenues come from the one-percent already. Trying to squeeze more out of them sends a strong signal to budding entrepreneurs to think twice before laying their lives on the line in pursuit of new ideas, new products, and new businesses—better to flee to the safety of working for someone else. Imagine what our lockdown would have looked like if Jeff Bezos had decided to do that. There goes Amazon.
And raising taxes on corporations is really a bait-and-switch that politicians trot out often. Why? Because they know that voters will not pay attention nearly enough to see how they are being lied to.
The fact is that corporations don’t pay taxes and never have. Corporations collect taxes. When politicians raise taxes on corporations, the corporations turn right around and either raise customers’ prices, cut workers’ compensations, reduce investors’ returns, or do some combination of all three. There is no other way to pay for the increased taxes.
So who ultimately pays? Customers, workers, and investors (including virtually all workers with pensions or IRAs). Voters don’t pay close attention, and politicians know it. So the American people buy the rhetoric and play their part in the show, chanting “tax the rich,” never realizing they are really calling for higher taxes on themselves.
The past four years were likely as much of a nightmare for mainstream Republicans as they were for Democrats. But it’s time for Republicans to shake it off and get to the business of offering viable alternatives.
Until it was their time at bat, the GOP was all about fiscal prudence. If it takes them being out of office to take up the charge against deficit spending, perhaps we’d all be better off if they remained out of office. But regardless of who wins and who loses the next election, or the one after that, or the one after that, someone will have to wake up and deal with our massive spending problem.
COVID-19 lockdowns are taking down an independent news outlet
Nobody said running a media site would be easy. We could use some help keeping this site afloat.
Colleagues have called me the worst fundraiser ever. My skills are squarely rooted on the journalistic side of running a news outlet. Paying the bills has never been my forte, but we’ve survived. We have ads on the site that help, but since the site’s inception this has been a labor of love that otherwise doesn’t bring in the level of revenue necessary to justify it.
When I left a nice, corporate career in 2017, I did so knowing I wouldn’t make nearly as much money. But what we do at NOQ Report to deliver the truth and fight the progressive mainstream media narrative that has plagued this nation is too important for me to sacrifice it for the sake of wealth. We know we’ll never make a ton of money this way, and we’re okay with that.
Things have become harder with the coronavirus lockdowns. Both ad money and donations that have kept us afloat for a while have dropped dramatically. We thought we could weather the storm, but the resurgence of lockdowns that mainstream media and Democrats are pushing has put our prospects in jeopardy. In short, we are now in desperate need of financial assistance.
The best way NOQ Report readers can help is to donate. Our Giving Fuel page makes it easy to donate one-time or monthly. Alternatively, you can donate through PayPal as well. We need approximately $17,300 to stay afloat through March when we hope the economy will be more open, but more would be wonderful and any amount that brings us closer to our goal is greatly appreciated.
The second way to help is to become a partner. We’ve strongly considered seeking angel investors in the past but because we were paying the bills, it didn’t seem necessary. Now, we’re struggling to pay the bills. This shouldn’t be the case as our traffic the last year has been going up dramatically. June, 2018, we had 11,678 visitors. A year later in June, 2019, we were up to 116,194. In June, 2020, we had 614,192. In November, 2020, we hit 1.2 million visitors.
We’re heading in the right direction and we believe we’re ready talk to patriotic investors who want to not only “get in on the action” but more importantly who want to help America hear the truth. Interested investors should contact me directly with the contact button above.
As the world spirals towards radical progressivism, the need for truthful journalism has never been greater. But in these times, we need as many conservative media voices as possible. Please help keep NOQ Report going.