ICYMI: Democrats Want Taxpayers to Shoulder an Additional $49 Trillion in Federal Spending
Washington, D.C. – The White House Council of Economic Advisers’ new report quantifies the overwhelming financial burden of the Democrats’ radical agenda. If the Democrat Socialists of America (DSA) enact their proposed policies, an additional $49 trillion in debt would be added over the next decade, equating to $355,000 per American household. This massive burden on families and government-centric vision of America would erode the American dream, destroy future opportunity and economic growth, and saddle the next generation with an impossible debt burden.
WORD ON THE STREET
Higher Taxes
The DSA is carrying out the Democrats’ mission to tax working families into bankruptcy, while providing “free” medical services to illegal immigrants. If the DSA fund their spending by increasing taxes, paychecks for hardworking Americans would be nearly 30 percent smaller, resulting in $22,000 in lost annual income.
More Government Debt and Government Run Health Care
Medicare for All would increase the federal budget deficit by approximately $47.4 trillion over 2027–2036 by completely replacing the U.S. health system with a fully government-run and taxpayer-funded insurance program. While the government would ensure that every American has health insurance, access to physicians for Americans previously on their employer-sponsored plan would be reduced by 44 percent. Medical productivity, the measure of the efficiency and quality of our health system, would decline by 22 percent as doctors and hospitals would lose all competitive incentives to provide high-quality services to patients, functioning more like the Department of Motor Vehicles (DMV) than a trusted doctor with personal relationships to patients.
Soaring Inflation and a Shrinking Economy
If the DSA pays for their agenda by taking on additional government debt, interest rates on 10-year Treasury bonds would breach 10 percent, dramatically increasing the interest rates on mortgages and loans of hardworking Americans, families, and small businesses. Inflation would increase to double-digit levels, ushering in another Democrat-inflicted cost-of-living crisis for Americans. 30-year mortgage rates would exceed 12 percent, which would make home ownership more difficult for first-time homeowners. A typical monthly mortgage payment would increase by roughly $1,100 under 12 percent mortgage rates.
What’s more, DSA’s vision of a socialist America would strangle economic growth, reducing economic output by 19.2 percent per year, with a loss of $72.5 trillion in GDP over a decade. These policies and taxes combine to shrink the economy and shrink worker paychecks by nearly 30 percent. Their proposed 32-hour workweek mandate contributes to this deteriorating economy, increasing the unemployment rate from its current level (4.1 percent) to between 6.6 and 8.2 percent and reducing annual economic output by 1.5 percent, a loss of $5.2 trillion over ten years.
THE BOTTOM LINE
Democrats are the party of high taxes, open borders, and other failed socialist policies. Republicans delivered the largest tax cuts for working families and small businesses; the most significant commitment to unlocking America’s energy resources; and the largest reduction in spending in the history of the United States—by two-fold. President Biden’s reckless spending spree resulted in 40-year high inflation and elevated interest rates. The Democratic Socialists of America doubling down on higher taxes, higher inflation, higher debt, and lower wages—a recipe for economic and fiscal disaster and would remove any chance of America remaining the preeminent economic power in the world.
