Raising taxes now would likely guarantee a recession
Washington Examiner
By Bruce Thompson
July 01, 2022
As more and more economic experts warn that a recession may be coming, the Biden administration still has its head buried deeply in the sand. Team Biden refuses to recognize the growing threat to the economy.
Despite the warnings, President Joe Biden keeps insisting a recession is “not inevitable.” At the same time, he keeps pushing Congress to raise taxes to pay for more spending.
Raising taxes now would be a tragic mistake. In fact, a recession would likely be inevitable if Congress increases taxes. Every time federal taxes as a percentage of GDP have increased above 19%, the U.S. economy has fallen into a recession. In our history, taxes as a percentage of GDP have risen above 19% six times — 1944, 1945, 1969, 1981, 1999, and 2000. A recession has followed every time . The Congressional Budget Office projects that federal taxes will reach 19.6% of GDP this year, making a recession all but inevitable if Congress raises taxes even higher.
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