rate and imposing a 25% minimum tax on wealthy americans. here with a look at the coming showdown in congress our wall street journal columnists khan henninger and mary anastasia o grady and editorial board member kyle peterson. so, dan, i couldn t help but notice that the new york times this week portrayed the president s budget as moving to the center. is that how you see it? [laughter] whoa. well, it may be where the new york times describes the center. no, that budget moves smartly to the left. i mean, senator elizabeth warren was beside herself over all the tax increases on the wealthy. she just thought it was great. you know, this is really a peter pan judgment, paul. you just spread pixie dust everywhere, and the economy takes off. we could make fun of it, we say it s not going to happen because of the republican house. i could make a couple points about in this. one, if perchance, this is a campaign speech concern a campaign budget, there s no question about it, a
paul: mary, the budget would take the share of government spending on the economy from what s been, you know, about a fifth of the economy over the long term to a quarter of the economy on an almost permanent basis. that s a huge increase in outlays and spending. meanwhile, it would raise taxes by, on a permanent basis by about two percentage points in gdp. still have huge deficits, but these are major increases in making the government a much larger part of our lives. not only that, paul, but joe biden is presenting this as fiscal responsibility as if, you know, he s going to tax the rich to use it obey for all kinds of promises to pay for all kinds of promises to everybody else. he thinks it will sell, and maybe it will, you know, until the reality hits people. but what i think is really important for the american public to understand is that deficits still go up this year, next year, and debt to gdp, which is an important measurement of how indebted a country is, will go from, l
about in this. one, if perchance, this is a campaign speech concern a campaign budget, there s no question about it, and it is a base budget. it s meant to the animate the progressives. but if perchance in 2024 the democrats were to take control of the government, the presidency, the house and the senate, they will do this. this is their intention. that is their goal. it s not completely pie in the sky. the republicans are going to need an answer. the other joe biden has been doing in these speeches is calling out maga republicans. again, it s easy to to dismiss that, but i think the white house has poll tested a lot of these ideas, both the budget and maga republicans, and they believe it has some appeal out will there in the country, possibly in swing states michigan, pennsylvania, wisconsin among middle class voters. yes, it s easy to make fun of it, it s not going to happen, it will not work, but republicans are going to have to answer it.
adequate? it is inadequate. factor inflation, it s actually a cut in defense spending. as we can see there, the budget categories for most of the domestic agencies and cabinets are way above what s being suggested for defense. and this is at a time when the has become a big issue, does the biden administration recognize the seriousness of the national security challenges that over the last who years have erupted and are facing the united states? russia, ukraine, china, mexico, the border. we re now going to talk a little bit about the car elss. there is a lot cartels. there is a lot on the defense department s plate, and i think what they are proposing here is not adequate to build up the military that this country s going to need over the next 10 years. it s entirely a domestic-oriented budge. budget. paul: all right. when we come back, president
piling even more spending on top of the $10 trillion that they already gave us before the budget and then promising policies that, as you guys discussed at the opening of the show, that are going to scare the heck out of potential future investors. right now, sure, president biden s not to going to get the corporate rate up to 28% because of kevin mccarthy, but that s his promise if he s reelected. it s probably at least 50-50 that he is elected, so would you build a factory right now knowing they re going to hike taxes that much as soon as they have a chance? you know, probably not. i ve done a lot of academic work that shows uncertainty over those prompts can have a big neck promises can have a big negative effect on the economy. the fed s gotta hike rates still, and when they do with consumers basically out of their covid savings and maxed out on credit cards, it s going to be a deep recession, and it s going to hit at a pretty interesting time politically as well, the is second h