LARRY KUDLOW: Biden’s economic vision is an unlimited welfare state

I know it’s the Monday of a new week, but I want to go back to last week’s Tuesday, which happened to be President Joe Biden’s state of the nation News.

I reread it over the weekend, along with some commentary on it, and, you know, from the standpoint of free market capitalism, or free enterprise, or life, liberty, and the pursuit of happiness, Biden’s message was just awful, a disaster . I mean really bad! The guy is an absolute control freak.

Basically, if you go through this speech, he has something to say about practically every corner of American life. Kudos to Wall Street Journal’s Dan Henninger for his “Joe Biden is Bernie Sanders” column. Hat tip to Liz Peek for her column on how anything Biden proposed would result in higher inflation. Here’s someone who got the story perfectly right. Please listen:

Sarah Sanders: “I’m for freedom, he’s for government control. In far-left America, Washington taxes you and burns your hard-earned cash, but high gas prices, empty grocery shelves and our children teach you to hate one another for race, not to love one another or our great country. Whether Joe Biden believes in this madness or is simply too weak to resist, his administration has been completely hijacked by the far left. The dividing line in America is no longer between right and left. The choice is normal or crazy.”


There you have it: normal or crazy. Sarah is right. I myself have written about Biden’s great governmental socialism and regulatory assault on pharmaceutical companies, tech companies and banks.

He would ban resort fees, limit concert tickets, set where people should sit on planes and dictate airline baggage costs, give the teachers union another raise, restore full tax breaks for children with no work requirements, and basically scratch every far-left itch in the Democratic Party, but my work was too modest.

Dan Henninger reminds us that Biden had plans for women, election reform, marriage, gas prices, lead in pipes, cancer, insulin, Medicaid, 500,000 electric vehicle charging stations, housing, of course student debt, and I was terribly remiss not to mention Biden’s Regulations on lumber, glass, drywall, and fiber optic cable, all used in federal construction.

On the other hand, Biden loves electric vehicles but hates the mining that’s necessary to produce mineral resources like copper, nickel, and lithium. As a gift to China, its Interior Department has just banned mining in Minnesota’s Iron Range next to Lake Superior.

It damaged our energy and our national security by using up the Strategic Petroleum Reserve for political control over gas prices, and indeed it’s back. Today he announced another sell-off of 26 million to take place from April to June. Did I just read that the Bidens now allow Medicaid to buy groceries? There is a massive expansion of the welfare state. No work requirements, of course.

He would like to see the child tax credit raised permanently from $2,000 to $3,600 for a cost of $1.6 trillion, even without work requirements. Also a job killer. In fact, all of these welfare command and control proposals are job killers and wealth killers and they will encourage higher inflation because the supply side of the economy will be smothered and wealth killers talked about, Mr. Biden wants to address taxes on successful earners, aka rich people.

It’s called the “billionaire tax,” but it would hit any net worth greater than $100 million at a marginal rate of 20% on all types of income, including non-income items, i.e. unrealized capital gains. Even if there is no sale, no transaction, there is a 20% tax.

I don’t know how that calculation would be made and actually it’s probably unconstitutional and even Europe has given up on the stupidity of wealth taxes but in round numbers it could raise the top federal tax rate for individuals to over 60%.

President Joe Biden holds his face mask and waves as he exits Air Force One at Capital Region International Airport on Tuesday, Oct. 5, 2021 in Lansing, Michigan (AP Photo/Evan Vucci) (AP Photo/Evan Vucci / AP Newsroom)


Then he wants to quadruple the stock repurchase tax, which, if enacted, would reduce returns for well over 100 million retired investors who own stocks indirectly through IRAs, 401(k)s and various state pension funds. Get her, Joe. Another wealth killer.

Actually, let me wrap this up. Joe Biden’s economic vision is an unlimited welfare state, combined with increasing taxes on corporations and free enterprise. That’s all. It’s a recipe for economic stagnation accompanied by high inflation. It is a blatant big government socialism agenda. Joe Biden is Bernie Sanders and a few more. this is my reef

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