President Joe Biden’s massive spending bill will lead to 5.3 million job losses and $3.7 trillion in additional debt over the next 10 years, according to study published Monday by the Texas Public Policy Foundation titled, “Reversing the Recovery: Pelosi’s Plan to Raise Taxes, Kill Jobs, and Punish the Middle Class.”
The economic effects of the bill on families and businesses will also be dire if the bill passes.
According to the study, the national debt increase would mean an extra $35,439 in debt on each American household. Additionally, the bill would jeopardize family farms and businesses when the original owner dies, drop a median family’s income by $12,000 and place a marriage penalty as high as $130,200 annually on small business owners.
The House passed the $3.5 trillion Build Back Better Act, but its fate remains uncertain with Republicans threatening to block the measure. The Texas Public Policy Foundation in its study summarized the impacts of the agenda:
- Top marginal income tax rates with federal, state, and local taxes are over 65%
- Corporate tax rate up by a quarter to 26.5% for third highest combined rate of 30.9% in OECD
- Marginal tax rate increase of 13 percentage points on some households
- Capital gains tax rate up by 25% • Marginal income tax rate on some small businesses raised by 24%
- Multiple severe marriage penalties are imposed
- Effective tax rate on large estates before state and local taxes is 61.1%
- Taxes raised on tobacco and vapor products, primarily used by those earning less than $400,000 • International taxes on businesses raised by over 20%
- $6.89 tax raised per barrel on imported petroleum and increase tax with inflation
- Capital gains tax rate increased, unrealized gains taxed at death, death tax increased, and step-up basis eliminated
- Cap on SALT deduction removed
- Redistributing $6.2 trillion in government spending slows growth
A study by the Tax Foundation published in mid-September also said the draft legislation would eliminate 303,000 full-time equivalent jobs in the U.S. and reduce long-run GDP by .98 percent and long-run American incomes by about 1 percent.
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