According to a study by Texas Public Policy Foundation, President Biden’s spending agenda will eliminate 5.3 million jobs while generating $4.5 trillion in debt.
The study also hints the United State’s gross domestic product (GDP) will be reduced by $3.7 trillion, nearly the cost of the massive $3.5 trillion reconciliation package.
Additionally, the study revealed that Biden’s legislative agenda would cost American families a combined $1.2 trillion in reduced income via tax increases to pay for the package.
The cost of Biden’s social welfare spending was broken down by state, analyzing Arizona, West Virginia, and Texas.
Arizona, where Sen. Kyrsten Sinema (D-AZ) resides and is opposed to much of Biden’s massive tax and spending, will absorb $97 billion of the cost and the destruction of 115,000 jobs.
West Virginia will absorb $24 billion of the cost and the destruction of 29,000 jobs. Sen. Joe Manchin (D-WV) has suggested his opposition to the expense and provisions from the radical left in the reconciliation package.
Texas will absorb more than both Arizona and West Virginia combined. The lone star state will be burdened with $394 billion while losing 467,000 jobs.
The Texas Public Policy Foundation’s study summarizes the following impacts of the tax and spending agenda:
- Top marginal income tax rates with federal, state, and local taxes are over 65%.
- Corporate tax rate up by a quarter to 26.5% for third-highest combined rate of 30.9% in OECD.
- A marginal tax rate increase of 13 percentage points on some households.
- Capital gains tax rate up by 25%.
- The marginal income tax rate on some small businesses was raised by 24%.
- Multiple severe marriage penalties are imposed.
- The effective tax rate on large estates before state and local taxes is 61.1%.
- Taxes were raised on tobacco and vapor products, primarily used by those earning less than $400,000.
- International taxes on businesses were raised by over 20%.
- $6.89 tax raised per barrel on imported petroleum and increased tax with inflation.
- Capital gains tax rate increased, unrealized gains taxed at death, death tax increased, and step-up basis eliminated.
- Cap on SALT deduction removed.
- Redistributing $6.2 trillion in government spending slows growth.
According to the study, the impact of the legislation on families is as follows:
- National Debt increase is an extra $35,439 in debt on each American household.
- It jeopardizes family farms and businesses when the original owner dies.
- The marriage penalty on small business owners is as high as $130,200 annually.
- The median family’s income drops by $12,000.
- Removing the SALT deduction cap: Middle-class families receive just $15 while wealthy Democrat donors in blue states receive $150,000.
The study details the impact on business is as follows:
- Lost investment of $663 billion.
- Taxing unrealized capital gains yields 43.4% less revenue than expected.
- Corporate tax rate hikes reduce wage growth by 23.1% for employees.
- International tax rate hikes reduce full-time employment by 12,000 jobs.
- U.S. tax competitiveness would fall from 21st to 30th.