Steil, Republicans aren’t buying that taxing the rich will cover Biden’s $6T spending plans Biden RACINE — By beefing up the Internal Revenue Services to go after billionaires who aren’t paying their share of taxes through loopholes and other methods of dubious legality, President Joe Biden aims to fund massive new spending plans to help
Steil, Republicans aren’t buying that taxing the rich will cover Biden’s $6T spending plans
Biden
RACINE — By beefing up the Internal Revenue Services to go after billionaires who aren’t paying their share of taxes through loopholes and other methods of dubious legality, President Joe Biden aims to fund massive new spending plans to help the nation see the light at the end of the COVID-19 pandemic tunnel.
Steil
But U.S. Rep. Bryan Steil, R-Wis., and other Republicans aren’t buying it: They don’t think it’ll be possible to recoup as much as $6 trillion in new spending in 2021 the Biden administration is considering in 2021 alone.
“I look at what the Biden administration is proposing: The spending side is $6 trillion new spending this year — that’s unreasonable. It’s not focused. It’s going to have a lot of inefficient, wasteful spending associated with it,” Steil said during a phone call Thursday afternoon, less than 24 hours after Biden’s primetime 100th day address.
This is one of the major political battles less than halfway into the first year of Biden’s presidency that could set the tone of how the next decade goes, both for the climate in Washington and the course of government action nationwide.
“President Biden emphasized willingness to work across party lines. His infrastructure plan, where Republicans have a detailed alternative, provides an immediate test,” Art Cyr, director of the A. W. Clausen Center for World Business at Carthage College, said in an email.
It’s an age-old normal divide seen between Republicans and Democrats: conservatives saying they want to keep the government out of day-to-day life, liberals calling for more government interference to address societal problems.
Who would bear burden?
“Out of the gate he (Biden) has got two proposals,” Steil explained. “No. 1: He claims he is only going to tax the rich. When you look at the size and scale of the Biden spending plan, it’s very clear I think to most Americans that it’s going to be: Tax the rich today, it’s going to tax everybody tomorrow.
“No. 2: He wants to take the corporate tax rate and make it higher than Communist China. Communist China’s corporate tax rate is 25%. The Biden plan wants to move the American rate above China’s rate.”
Although it’s questionable whether China is truly “communist” as its economy grows — China ranks as the 124th most economically free country in the world, according to the Fraser Institute’s annual report; the U.S. is sixth — Biden’s tax proposals would bring corporate taxes in the U.S. higher than China’s rates.
As The Tax Foundation, a Washington D.C.-based tax policy nonprofit, reported on April 1: “President Joe Biden’s proposal to raise the federal corporate income tax rate to 28 percent would increase the combined average top tax rate on corporate income to 32.4 percent, highest in the Organisation of Economic Co-operation and Development, reducing U.S. competitiveness and long-run economic growth.”
That said, the Tax Foundation noted that corporate taxes for many U.S. businesses are currently above 25% due to state corporate taxes: “Under current law, corporations in the United States pay federal corporate income taxes levied at a 21 percent rate plus state corporate taxes that range from zero to 11.5 percent, resulting in a combined average top tax rate of 25.8 percent in 2021.”
A plan to raise taxes on businesses is one that progressive leaders such as U.S. Sens. Elizabeth Warren of Massachusetts and Bernie Sanders of Vermont have repeatedly proposed and advocated for, but are finally now getting traction as progressive policies become more popular.
Even if taxing corporations — notably, Amazon, Charter Communications (Spectrum), Nike and FedEx have paid $0 in annual federal taxes at some point in the past couple years — brings in more revenue for the federal government to pay for the Biden administration’s ambitious programs, Steil and other conservatives fear it could be a job killer; the U.S. is competing to bring jobs with countries such as China and Mexico, which offer much cheaper labor.
Johnson
“Unfortunately,” U.S. Sen. Ron Johnson, R-Wis., said in a Wednesday statement, “President Biden’s agenda is massive spending, massive tax increases, open borders, and attacks on energy that will harm our economy and threaten American jobs.”
The Biden administration and its supporters are betting that government-encouraged investment in new, renewable energy and other infrastructure projects will offset potential job losses.
As the Associated Press reported following Biden’s Wednesday night address: “The president’s proposals include massive investments that Republicans argue are stretching the definition of infrastructure — electric-vehicle charging stations for the automobiles of the future, as well as the construction of new veterans hospitals, child care center services and other facilities. As investments in families, there are promises of free preschool for 3- and 4-year-old children, free community college and tax breaks that send as much as $250 a month to households with children.
“Together, Biden’s two proposals would be paid for by raising the corporate tax rate from 21% to 28% and hiking taxes on the wealthiest 1% of Americans earning above $400,000.”
Julie Pace, Associated Press Washington bureau chief, noted in an analysis: “Forty years ago, a newly elected American president declared government the source of many of the nation’s problems, reshaping the parameters of U.S. politics for decades to come. On Wednesday night, President Joe Biden unabashedly embraced government as the solution,” by arguing explicitly that Ronald Reagan’s ‘trickle-down economics has never worked.’ ”
“I’m not out to punish anyone,” Biden said Wednesday, “but I will not add to the tax burden of the middle class of this country.”
Still, the big spending plans are a poison pill for conservatives; Senate Majority Leader Mitch McConnell called Biden’s ideas a “Trojan horse” that will lead to middle-class tax hikes.
Regardless of Biden’s intentions, Republicans fear employers may become less willing to establish or deepen roots in the U.S. if tax hikes on the wealthy and corporations go through.
Scott
“It’s a liberal wish list of Big Government waste” with “the biggest job-killing tax hikes in a generation,” U.S. Sen. Tim Scott, R-S.C., said during the GOP response to Biden’s speech Wednesday, a retort that Steil said he loved.
“We’ve worked really hard for the previous handful of years to bring jobs from places like Communist China, to the United States of America,” said Steil, whose district includes all of Racine and Kenosha counties and parts of the surrounding counties, “and, before we got punched in the face by the coronavirus, we were making great progress on bringing jobs to the United States. We were seeing low unemployment rates. We were beginning to see rising wages. And then we obviously went through a very tumultuous, very difficult 13 months.
“And now, right as we are coming out of that period of time, instead of putting forward policies … that allow people to get a better job right here in Racine County or Kenosha County or across southeastern Wisconsin, his (Biden’s) proposal puts a burden on employers and gives an advantage to countries like Communist China that if his plan was implemented would have a lower corporate tax rate, a lower employer tax rate than we would here in the United States.”
PHOTOS: Reflecting on COVID-19 in the Midwest, one year later
Bloomington, Illinois
The statue called “Convergence of Purpose” featuring Abraham Lincoln and associates Jesse Fell and David Davis sports face masks on March 30 in Bloomington, Illinois.
Bloomington, Illinois
A Reditus Laboratories technician wearing a face shield instructs a subject how to use a nasa swab to test for the coronavirus at the testing site at the McLean County Fairgrounds, Wednesday, July 22, 2020.
Bloomington, Illinois
Bruce Unterman joined about 30 protesters who called for Congress to pass a COVID-19 relief package during a protest Tuesday, Dec. 8, 2020, at the Bloomington Center for the Performing Arts in Bloomington, Illinois.
Bloomington, Illinois
More than 100 vehicles waited in line as people waited to be tested for COVID-19 at the Reditus Laboratories testing site at the Interstate Center in Bloomington, Illinois, on Thursday, Nov. 12, 2020.
Carbondale, Illinois
A student at Unity Point in Carbondale, Illinois, displays signs for teachers and staff at the school as families drove through the parking lot where the staff had gathered on April 21 after the pandemic forced the school to go to remote learning.
Carbondale, Illinois
Doug Robinson, owner of Keepers Quarters in Carbondale, Illinois, measures the space between tables on May 27 as he prepares to start offering outside dining on Friday as part of the next phase of reopening Illinois’ economy.
Carbondale, Illinois
Heath Hill, left, cuts a customer’s hair at the Murdale Barbershop on May 29 in Carbondale, Illinois. It was the first day the shop had been open in two months due to the restrictions imposed by the state in response to the COVID-19 pandemic.
Carbondale, Illinois
A sign reminds voters to wear a mask and socially distance in the 13th Precinct polling place at the Epiphany Lutheran Church on Nov. 3 in Carbondale, Illinois.
Carbondale, Illinois
Lori Opp works with her fifth grade class on vocabulary words from her classroom at Lewis Elementary School on Nov. 16 as the school district returned to remote learning due to rising COVID-19 cases.
Charleston, Illinois
A sign reminds students to wear a mask and maintain social distance as they walk to and from class on the campus of Eastern Illinois University in Charleston, Illinois, in September.
Charleston, Illinois
Ginger Stanfield leads the Charleston Community Band at the Coles County Fairgrounds on July 3. More than 90 vehicles and 250 people were at the socially distanced concert.
Decatur, Illinois
Hunter Highfill works at an Illinois Department of Public Health COVID testing site at the Decatur Civic Center on Oct. 26 in Decatur, Illinois.
Decatur, Illinois
Vehicles wait at a COVID testing site at the Farm Progress Site in Decatur, Illinois, on Jan. 22.
Decatur, Illinois
Stickers await people who participated in a COVID vaccination clinic on Jan. 22 at the Farm Progress site in Decatur, Illinois.
Decatur, Illinois
Fourth grade instructor Sarah Smith listens to Assistant Director Dave Webster talk about doves during a “virtual field trip” to Scovill Zoo in Decatur, Illinois, on Sept. 11.
Decatur, Illinois
Becca Massey and her daughter Kierra Massey, surprised her aunt, Becky Pickrell, on her 101st birthday by singing happy birthday on March 26 at Randall Residence in Decatur, Illinois. They both had to sing in the front of the building through glass so that everyone would be safe.
Mattoon, Illinois
Police Sgt. Chad Smith speaks with visitors at a COVID-19 check in at Lake Land College in Mattoon, Illinois, on Sept. 3.
Mattoon, Illinois
Callyn Ballinger, 7, holds a sign she made for health care workers outside Sarah Bush Lincoln Health Center in December in Mattoon, Illinois.
Normal, Illinois
Ellen Straight held a sign wishing her father, Oliver Bidner, love as dozens of cars paraded through The Loft Rehabilitation & Nursing, 510 Broadway in Normal, Illinois, Friday, May 1, 2020. Visits at The Loft were stopped at the beginning of the COVID-19 outbreak.
Tuscola, Illinois
Tuscola High School Principal Steve Fiscus sanitizes the gym before the start of the varsity game against Arthur-Lovington-Atwood-Hammond on Jan. 29.
Munster, Indiana
From left, Juanita Dortch, Katie Novosel and Michelle Geissler, X-ray technicians at Community Hospital, take a selfie together with first responders in the background on April 19, 2020, in Munster. Police and firefighters from north Lake County and several Illinois agencies paraded around the hospital to recognize the health care workers.
Merrillville, Indiana
Nick Gianikos, a housing board member at the AHEPA apartments in Merrillville, Indiana, receives his Moderna COVID-19 vaccine from Walgreens pharmacist Mindy Keeton on Jan. 11, 2021.
Hammond, Indiana
Franciscan Health Hammond health care workers wave to first responders as they parade around the hospital on April 27, 2020.
Crown Point, Indiana
Keith Moseley, an election clerk, sorts through returned absentee ballots on Oct. 5 at the Lake County Board of Elections and Registration at the Lake County Government Center in Crown Point, Indiana.
Crown Point, Indiana
Wendy Vottero, a nurse practitioner at Franciscan Health Crown Point, receives a COVID-19 vaccine shot from Rob Dowling, director of emergency medical service, on Dec. 18, 2020, at the hospital in Crown Point, Indiana.
Burlington, Wisconsin
A man and a girl swing at Echo Park in Burlington, Wisconsin, on May 2 during a ReOpen Burlington protest, even though all playgrounds in Wisconsin had been declared off limits at the time.
Burlington, Wisconsin
During an extraordinary and nearly postponed April election, one of the leaders of Wisconsin’s Republican legislative majority, Assembly Speaker Robin Vos of Rochester, talks to a member of the media while working as a poll worker in Burlington, Wisconsin. “You are incredibly safe to go out,” he told viewers while wearing required personal protective equipment in a video that was shared widely on social media throughout the day.
Burlington, Wisconsin
JR Lukenbill, a sophomore guard at Wisconsin’s Burlington High School, shoots over Wilmot High School’s Anthony Corona, left, and Korik Klein during their teams’ December matchup. As a precaution to prevent the spread of COVID-19, players wore masks in high school athletics events, including in basketball and volleyball.
Caledonia, Wisconsin
The Rev. Mike Matheson of Grace Church, in Caledonia, Wisconsin, prays as he leads church services livestreamed on Facebook Live on the morning of March 22.
Dunn, Wisconsin
Robert Wilson of the town of Dunn in Dane County, Wisconsin, reviews his selections on his ballot after voting at the town’s highway garage building on April 7, 2020. Democrats sought to delay the election in light of the surging pandemic, but the state Supreme Court ordered it be held as originally scheduled.
Fontana-on-Geneva-Lake, Wisconsin
With the coronavirus outbreak prompting many people to wear hospital masks in public, someone decided that the Chief Big Foot statue on the Fontana lakefront should be protected, too, along with a latex glove that does not quite fit right.
Genoa City, Wisconsin
Teacher Haley Peters removes ottomans July 30, 2020, from her classroom at Brookwood Middle School as the Genoa City school aims to combat the coronavirus by eliminating places where the virus could spread.
Kenosha, Wisconsin
Wearing their COVID masks, Eric Itzenhuiser and Heather Lawler are married by the Rev. Johnny Poole at their home in Kenosha, Wisconsin, on Saturday, May 2. Life went on despite the pandemic.
Kenosha, Wisconsin
Robert Clayton walks with his grandchildren, Greyson, 5, and Harper, 4, around the track at UW-Parkside in Kenosha on Saturday, Aug. 1, 2020. Kenosha’s Relay for Life took place with many participating virtually — walking laps, sharing supportive stories and hearing presentations via social media. Another difference this year was having a sole honorary cancer survivor at the event. Clayton, 56, was declared free of the disease by November 2017, after getting the disease after his retirement from work in 2003. He walked around the track at UW-Parkside with family to celebrate his cancer-free status.
Kenosha, Wisconsin
Matt Sullivan looks through binoculars as he and his wife, Kristin, settle in to watch the Indian Trail football team play Oak Creek in a Southeast Conference game on Friday night, Sept. 25, at Jaskwhich Stadium in Kenosha, Wisconsin. School district requirements in place due to the COVID-19 outbreak kept the stands at the stadium empty, but parents and fans found ways to see the game where they could.
La Crosse, Wisconsin
Sam Turner, a kindergartener at Southern Bluffs Elementary School in La Crosse, Wisconsin, wears a mask during his first day of class in nearly ten months after the La Crosse School District welcomed back students for in-person learning.
La Crosse, Wisconsin
Anita Sachs reads her ballot at the Coulee Recovery Center in La Crosse, Wisconsin, before voting in the April primary election. Despite an effort by Gov. Tony Evers to delay the election amid the COVID-19 pandemic, voting went on as planned.
La Crosse, Wisconsin
Bonnie and Dan Felton wave to passersby as they impersonate Santa and Mrs. Claus from a storefront window at Duluth Trading Co. in downtown La Crosse, Wisconsin, in November 2020. Instead of the usual up-close visits inside the store, The Feltons, due to the COVID-19 pandemic will appear in the window several afternoons a week during the Holiday season.
La Crosse, Wisconsin
Fellow registered nurses look on as their colleague, Sheila Berra, administers the first COVID-19 vaccine in La Crosse to Tom Jensen, a COVID-19 patient care technician, at Mayo Clinic Health System in December. The vaccine was delivered earlier in the day by Wisconsin State Troopers.
La Crosse, Wisconsin
A sign reads “We Are Open,” outside of Bean Juice coffee shop at Jackson Plaza in La Crosse, Wisconsin, in April.
Lake Geneva, Wisconsin
Lake Geneva aldermen and city staff gather via video May 19, 2020, to avoid spreading the coronavirus, during a special meeting in which the city council voted to open Riviera Beach to the public.
Lake Geneva, Wisconsin
Many shoppers and visitors forgo face masks and other public health guidelines on Main Street in downtown Lake Geneva as stores reopen May 17 during the coronavirus pandemic. Many people flocked from Illinois to Lake Geneva after a Wisconsin Supreme Court ruling allowed Wisconsin businesses to reopen.
Madison, Wisconsin
Members of the UW-Madison marching band wear face coverings and play instruments with bell covers during a limited-capacity practice session on the campus on Aug. 27, 2020.
Madison, Wisconsin
UW-Madison graduates, from left, Jacob Tottleben, of St. Louis, Lindsey Fischer, of La Crosse, and Olivia Gonzalez, of Milwaukee, celebrate wiith champagne after their spring commencement ceremony was moved online on May 9, 2020.
Madison, Wisconsin
In hindsight, the marquee over the Orpheum Theater in Downtown Madison, Wisconsin, seen here on March 23, 2020, was overly optimistic. Closures of theaters, restaurants, bars and other businesses would stretch well beyond March.
Madison, Wisconsin
Hawk Sullivan, owner of Hawk’s Bar & Grill in Madison, Wisconsin, was forced to close his restaurant temporarily in March 2020. At least 28 Madison-area restaurants went out of business last year.
Pleasant Prairie, Wisconsin
Tracy Twigg, a poll worker, opens a stack of absentee ballots to be tabulated at the Pleasant Prairie Village Hall on Monday, April 13, 2020.
Racine, Wisconsin
Jordan Mogren arrived to Park High School’s drive-up graduation ceremony in Racine, Wisconsin, on July 9 through the sun roof and received a kiss from his mother receiving his diploma.
Racine, Wisconsin
Summer Davis wears a face shield while standing behind the bar at The Maple Table, a popular restaurant in Racine, Wisconsin, on May 26, 2020, the first day restaurants in the city could reopen following ordered closures due to the COVID-19 pandemic.
Racine, Wisconsin
Jeremy Laffin, owner/pharmacist at Racine Hometown Pharmacy in Wisconsin, gives a brief consultation to patients prior to getting their first dose of the COVID-19 vaccine on Tuesday, March 9. Laffin walked back and forth, preparing doses behind the counter, then administering them to patients.
Williams Bay, Wisconsin
For students who cannot visit the library because of the coronavirus, library staffers Laura Lombardo, left, and Emily Sanders, greet second-graders from Williams Bay Elementary School via a laptop computer camera at Barrett Memorial Library in Williams Bay, Wisconsin, in September 2020.
Winona, Minnesota
Students of the Service Learning Class at Winona Senior High School gathered outside of Winona Health in Winona, Minnesota, in April 2020 to thank the health-care workers for all their hard work during the COVID-19 pandemic.
Co-leader Christine Dahlke (holding the letter A) expressed gratitude for those in the community who are continuing to work during the present circumstances. “Just keep supporting your local businesses and your local hospitals,” she said. “It’s always good to say thank you. I hope we inspire someone.”
Winona, Minnesota
Campus traditions to celebrate Halloween and other holidays, like the one pictured at Saint Mary’s University in Winona, Minnesota, looked different this year, as students wore masks to help prevent the spread of COVID-19.
Winona, Minnesota
Young children, like Addison Brand, pictured, face a new reality of having to wear masks during their childhood progress exams — something that many parents decided not to complete this year in fear of the pandemic. Brand attended her appointment at the Gundersen Winona Campus in Winona, Minnesota.
Winona, Minnesota
Testing is completed at the Winona Mall’s mass semi-permanent testing site in November in Winona, Minnesota.
Winona, Minnesota
Dr. Joseph Kaiya, pictured, was the first health care worker to receive the COVID-19 vaccine at Winona Health Dec. 18 in Winona, Minnesota.
Horicon, Wisconsin
From left, Riley Peterman and Gianna Begg hold handmade signs showing support for the teachers of Horicon, Wisconsin. Faculty and staff paraded through Burnett, Iron Ridge and Horicon on May 1, 2020, honking and waving to district students and families along the way. Schools were mandated to close this spring due to the coronavirus pandemic.
Fountain Prairie, Wisconsin
Gail Schneider maintains a safe distance while photographing the Beaver family April 2, 2020, at their brand new house in the town of Fountain Prairie, Wisconsin. Schneider joins photographers across the nation in the “Front Porch Project,” which tells the story of home life in the time of COVID-19.
Cambria, Wisconsin
Jordon Anderson of the Wisconsin National Guard waits to bag a sample Oct. 23, 2020, as Wyatt Anderson works next to him during the first biweekly COVID-19 free community testing event at the Cambria Fire Department in Cambria, Wisconsin.
Portage, Wisconsin
Aidan Black gives an “air high-five” to Principal Joshua Sween on June 5, 2020, during Portage High School’s socially-distanced, drive-by graduation ceremony. Students along with their families in vehicles were escorted down School Road by Portage and Columbia County first responders and then walked across the stage with their diplomas and finished up with an “air high-five” with Sween. “We wanted them to have some closure,” Sween said of the pandemic-adjusted ceremony that also gave the families a chance to take pictures with graduates in front of the high school.
Barboo, Wisconsin
John Handlen, vice president of operations for Madison-based Biodome Protection, uses an electrostatic sprayer to apply an antimicrobial surface protectant to the chairs on Sept. 29, 2020, at Al. Ringling Theatre in Baraboo.
Pete Wicklund of Lee Newspapers contributed to this report.
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