New jobless claims just rose again, to the highest level since last November. If the economy keeps shrinking, as it did in the first two quarters of 2022, unemployment will likely grow worse. And help definitely is not on the way from Washington.
The trimmed-down Build Back Better bill that Democrats are ramming through this week, after all, is raising taxes on Americans amid the recession.
- A 15% minimum corporate tax aiming to raise $313 billion, costs certain to be passed to customers and workers via higher prices and lower wages.
- A $6.5 billion tax on energy companies that will likewise be passed to consumers, and a $12 billion levy on imported oil that’ll raise the gas prices at the pump yet more.
- A $124 billion stock-buyback tax that’ll sock retirement plans for many Americans.
- $200 billion in new tax revenue from amped-up IRS audits.
The tax hikes will be bad enough for individuals, but if they deepen the recession — as tax hikes usually do — the entire nation may be in trouble: Why discourage investment and fuel unemployment when the economy’s been shrinking?
Because the bill includes Dem wish-list items that long predate any recession, surging inflation or any other pressing national problems: $400 billion in new spending for the green agenda and a new cap on Medicare drug prices.
This follows Dems’ similarly irrelevant-to-the-moment passage of the American Rescue Plan Act early last year — supposedly to “rescue” an economy that was already booming post-COVID, but in reality just to shell out $1.9 trillion on Dem goodies. Worse, they blew off warnings that it would spur the very inflation the nation’s suffering now.
So: Democrats gave us soaring prices with one bill that pretended to goose the economy, and now are slamming the economy with another bill that pretends to fight inflation (and, as Biden put it, “God knows what else”). Watch out for the coming “Life Extension and Universal Prosperity Act.”