FIRST ON FOX: A new report by a conservative anti-tax group warns of massive economic loss and damage to middle-class families if the tax hikes that come with a $ 3.5 trillion Democratic spending proposal are signed into law .
“Copying fiscal policy the European style will lead to European-style economic weakness, especially when you consider that much of Biden’s new redistributive spending will discourage work and much of the tax hikes for Biden’s class war on saving, investment and entrepreneurship punish, ”reads a new report from Das Says the Club for Growth.
CONSERVATIVE GROUP LAUNCHES DEMS MULTI-MILLION DOLLAR Push-to-Detail Spend Plan of $ 3.5 Trillion
While much of the debate around the bill has centered on the expenditure side, the group seeks to raise awareness of the tax plan contained in the bill. The report warns that the proposal would result in the US having the highest corporate tax rate and capital gains tax rate in the developed world.
“The bottom line is that the president’s tax and spending agenda repeats the mistakes of nations like France, Italy and Greece,” it said. “These nations are suffering from slower growth, higher unemployment and lower living standards, in large part due to poor fiscal policies.”
The report predicts a loss of $ 3 trillion in economic output over the next 10 years, a loss of $ 1.6 trillion in employee benefits over the next 10 years, an average loss of more than $ 10,000 in employee benefits, and a lifetime loss 4% decline in living standards for young workers.
“It’s a catastrophe for economic growth. GDP is slowing, fewer jobs and significantly for families, and income is falling over the next 10 years,” said David McIntosh, president of Club for Growth, in an interview with Fox Business.
McIntosh also argued that a new round of taxes would be particularly painful given the economic climate and the ongoing COVID-19 pandemic.
“As we continue to come out of the closings from the first round of COVID and some places have to cut back on activities with the Delta virus and who knows what will happen next year, the economy is in a precarious position,” he said.
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The report comes as Democrats try to move forward with a budget reconciliation bill that will bring together a number of their spending and other policy priorities. A budget equalization bill only needs 50 votes in the Senate and therefore does not need Republican support. A majority would also be needed in the House, where the Democrats only have a slim majority and many defectors cannot afford.
Conservative groups like the Club for Growth are trying to shake off more moderate Democrats who have struggled against the size of the spending package and the massive tax hikes that came with it.
Club for Growth announced to Fox Business last week that it will spend $ 300,000 to run TV and digital ads for a week in 10 major districts targeting moderate Democrats facing tough re-election “far-reaching package for social spending.
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The group says it also runs ads praising Democrats who oppose their party and reject the law.
“It’s tagged with moderate Democrats who don’t like the social programs and socialist approach to spending or taxes but are being put in shape by the leadership – and our goal is to bring them home support,” said McIntosh named.
Fox News’ Paul Steinhauser contributed to this report.