Shalanda Young, who serves as the White House Budget Chief, has recently announced that taxes will likely be increased cross the board in order to provide adequate financing to the Biden administration’s proposed $6T spending plan for 2022.
According to Young, the “reason” for increasing taxes across the board is to become more “fiscally sound,” primarily by ensuring that every dollar spent in Biden’s enormous spending plan is “offset” by revenues from taxpayers.
Young also claimed that it was possible to acquire the necessary tax revenue for individuals making $400,000 or more annually, suggesting that it is possible to achieve the needed tax revenue “without taxing individuals” who make under $400,000 per year.
On Wednesday, Young admitted that the proposed spending plan is likely to encounter difficulties passing in the Senate. One of the principal reasons for this likelihood can be attributed to various concerns about the consequences of increased taxes, including the potential stunting of economic growth, an especially serious post-pandemic concern.
Biden originally announced his proposed $6 trillion spending plan in May. This plan includes a broad range of different programs for the middle and lower classes, such as various safety net programs. Moreover, the plan also calls for large tax hikes for various businesses and high income-earning Americans.
Young claimed that Biden’s plan was designed to promote greater equality by promoting higher taxation and higher spending.
She argued that it is “responsible to ensure the middle class and those trying to enter it are not impacted.” Young also proceeded to argue that “it’s the right thing to do” with regards to elevating taxes for “the wealthiest Americans” and ensuring that they are “contributing their fair share,” which presumably involves paying what the average American worker pays “as a percentage of what they bring in.”
In addition to tax hikes, Young also suggested the imminent possibility of the Federal Reserve raising interest rates, mainly by admitting a potential increase in these interest rates will make the rising levels of American national debt even more costly to taxpayers across the nation.
Nonetheless, Young insists that the push towards presumed equity is well worth the aforementioned risks, in spite of the costs that the spending plan is likely to bring to all Americans, regardless of whether they are lower, middle, or upper class.