$1 trillion dollars in new taxes, does not mean you get $1 trillion dollars in new tax revenue.
Throughout, US history, you get 15-17% of GDP as tax revenue. Given the large variety of different ways we attempted to tax, it seems to be almost a universal law.
Currently US brings in $1.9 Trillion dollars in tax revenue. Biden is saying that it must increase taxes to $2.9 Trillion dollars in revenue. Such the US GDP must increase by 33%, if there isn't to be major impacts on other parts of the economy.
There're only two ways that $1 trillion dollars in new taxes works out or is a flat out lie: The US Dollar inflates by 31%-33% (accounting for real economic growth) or the government crowds out and takes on previously private sector obligations that it needs to spend for.
With calls for nationalized healthcare and the fact that Biden was part of Obamacare. I think Biden is going to try and take over the healthcare sector and use that, if the taxes are to be designed to work.
There is only two options: this falls flat on it's face or it causes a lot of damage.
$1 trillion dollars in new taxes, does not mean you get $1 trillion dollars in new tax revenue.
Throughout, US history, you get 15-17% of GDP as tax revenue. Given the large variety of different ways we attempted to tax, it seems to be almost a universal law.
Currently US brings in $1.9 Trillion dollars in tax revenue. Biden is saying that it must increase taxes to $2.9 Trillion dollars in revenue. Such the US GDP must increase by 33%, if there isn't to be major impacts on other parts of the economy.
There're only two ways that $1 trillion dollars in new taxes works out or is a flat out lie: The US Dollar inflates by 31%-33% (accounting for real economic growth) or the government crowds out and takes on previously private sector obligations that it needs to spend for.
With calls for nationalized healthcare and the fact that Biden was part of Obamacare. I think Biden is going to try and take over the healthcare sector and use that, if the taxes are to be designed to work.
There is only two options: this falls flat on it's face or it causes a lot of damage.