Early this morning Missouri Senator voted yes on a bill that would raise taxes on those “making over $450 thousand in annual income” and to reduce spending by $15 billion. From Fox News:
House conservatives were already voicing frustration about the lopsided ratio of tax increases in the plan, as compared with net spending cuts. One estimate showed the bill includes $620 billion in tax hikes and $15 billion is spending cuts
The tax increase is expected to raise revenues by $620 billion. While much of the tax increase will be passed on to average Americans thought higher costs, layoffs will also result as a method to increase cash flow for business owners. Another result in the tax hike will be less money available to spend in the private economy, fewer savings in banks for mortgages and less capital available for business growth. A plus for Ms. McCaskill is that the $650 billion offers a new revenue stream for spending and the $15 billion in cuts will never materialize.
Also, unemployment benefits were extended for another year, meaning American workers will not have to seek employment for another 12 months therefore reducing U.S. productivity.