$1-Trillion Gimmick Hidden in Biden’s Spending Spree

$1-Trillion Gimmick Hidden in Biden's Spending Spree

(ConservativeInsider.org) – Since he began his campaign, President Joe Biden has been advertising his infrastructure plan as a way to revitalize America and provide families with the resources they need to succeed. However, the world’s largest business organization, the United States Chamber of Commerce (USCC) called out the president’s proposed bill for its sneaky spending that could have an immense negative “real-world impact” if enacted.

USCC Uncovers $1 Trillion in Democrats’ Spending Gimmick

On Wednesday, November 10, the USCC wrote a letter to members of Congress to highlight its concern over the current reconciliation bill. The lobbying organization noted that the legislation’s cost is much higher than shown, as there are multiple spending and tax provisions snuck into the bill through sunset clauses.

The USCC asked lawmakers to take a second look at the bill to understand its impact on workforce participation, inflation, state governments, and the private sector. According to numbers put forth by the Penn Wharton School at the University of Pennsylvania, programs such as universal preschool, ACA health coverage, and the child tax credit have true costs of around $4.1 trillion if the federal government made them permanent. Right now, the White House only estimates the bill’s cost at just under $2 trillion.

Sunset Clauses Throw Responsibility onto State Governments

The USCC also highlighted that the proposed legislation contains multiple programs which transfer fiscal responsibility to the states in coming years, such as childcare. In year 4, Biden expects states to cover 10% of the cost of these programs, and by year 6, there’s no federal funding for them. The USCC asked lawmakers to scrutinize these proposals to understand how it’ll affect states, low-income individuals, and childcare providers, as they “will ultimately impose significant unfunded costs on state governments and the private sector.”

Will the Infrastructure Bill Add Fuel to Inflation and Workforce Participation Issues?

In the letter, Executive Vice President for the USCC Neil Bradley noted that there’s a “substantial risk” of extended high inflation if Congress passes the bill. With current inflation numbers already at a 6.2% increase in the past year, is that the legacy they want to leave?

When the Affordable Care Act (ACA) went into effect in 2010, the Congressional Budget Office (CBO) calculated that it would decrease America’s workforce by around 0.5%. If Congress expands Medicaid and other healthcare services again through this bill, will the labor force shrink yet again?

As the United States economy continues to crawl its way out of the pandemic and shutdowns, Bradley asked lawmakers if this bill will truly help or hurt America. Perhaps, this is a question every citizen should also ponder.

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