Michael Lee Strategy founder Michael Lee tells FOX Business' "Varney & Co." that President Biden's massive spending plan and Treasury Secretary Janet Yellen's enthusiasm for tax hikes is the "No. 1 threat" to economic growth and the market.
Michael Lee: "Stuart, absolutely, in my mind, and in my view, that is the No. 1 threat to economic growth going forward and therefore the No. 1 threat to the market going forward for Janet Yellen on one day to say that she expects employment to return to pre-pandemic levels next year and then the next day, talk about massive tax increases just shows how hyper-partisan and how oblivious they are to reality. It seems this administration is dead set on doing everything the opposite way that led to historic unemployment and historic wage growth for those at the bottom end of the earning spectrum. And that's because the previous administration was focused on bringing high value, high productivity, high multiplier manufacturing jobs back to the U.S. This Green New Deal will kill manufacturing in the United States as we know it. And you combine that with tax increases. You have 100,000 companies that do between $25 million and a billion dollars in sales that are private companies. This tax increase will crush them. It will crush employment. It will crush capital investment. I don't see how anybody in their right mind could think that this is a remotely good idea.
I think you're going to see some breaks on these tax increases, tax increases do not help the economy... All they do is increase government power and control, and they are only going to be put on the table to gain Congressional Budget Office scoring so that they can spend more money on liberal nonsense. So I'd say that Republicans are going to be able to do a good job of peeling off some votes so that hopefully these don't get passed. But we will see where this comes because if you're going to offer Kyrsten Sinema and Joe Manchin tens of billions of dollars for pet projects in their home state, I mean, how much does it take to buy off a senator? I don't think it's that much. So we'll see what happens if this does happen. We will never see unemployment at the levels it was in pre-pandemic and the Trump administration from the Biden administration until... somebody steps back into office, that's going to mimic the policies of the previous administration."