Americans for Tax Reform President Grover Norquist told Newsmax Friday that President Joe Biden's proposed $7 trillion 2024 fiscal year budget including a corporate tax increase from 21% to 28% will hurt the already struggling economy.
"[Taxes] remove money from the productive part of the economy, from small businesses and individuals, and hand it to the government, which is a monopoly," Norquist said during "The Chris Salcedo Show" Friday. "And monopolies are inherently inefficient and don't function very well. The larger the government, the slower the growth of the economy."
"My budget reflects what we can do to lift the burden on hardworking Americans, and there's more than one way to do that," Biden said when unveiling the spending plan in Pennsylvania on Thursday. "And that's — would bring us to, down to everyday costs: how much do things cost."
According to the White House, the budget will help the country financially by reducing the deficit by nearly $3 trillion over the next 10 years. The budget "would set the corporate tax rate at 28%" and "includes a 25% minimum tax on the wealthiest 0.01%."
"My plan is to make sure that corporations begin to pay their fair share. And it used to be 35%," Biden said. "We cut it down to 21%. I think we should be paying 28%. There's going to be a real fight on that, but we should be paying more than 21%."
The Wall Street Journal reported Thursday that Biden's plan would also increase the top individual income tax rate to 39.6% from 37%.
Some financial experts have responded to the plan by warning that it will hurt the economy in the end.
"Biden's new $7 trillion budget with trillions of new taxes is a fiscal atrocity that would crash the economy and stock market," Heritage Foundation fellow Stephen Moore said Friday.
According to the Journal, Biden's plan is going to face heavy GOP opposition in Congress, with Republicans offering their own spending plan in the coming months.
"The budget proposal issued today by President Biden would continue the reckless spending spree of the past two years, which has led to the largest rise in the cost of living in 40 years and a soaring national debt," Rep. Larry Bucshon, R-Ind., said in a statement.
"Despite the fact that the federal government collected near-record revenues this past year, President Biden's budget calls for even more money to be taken from the wallets of Americans and businesses through new taxes. And yet the president's budget still would result in trillion-dollar deficits each year for as far as the eye can see. In short, President Biden's does nothing to curb Washington's spending addiction and address our looming debt crisis, which will result in American families and businesses on Main Street ultimately drowning in a sea of Washington's red ink."
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