Since President Biden took office, Americans have struggled to pay President Biden’s inflation tax. Real wages have fallen 5.1 percent, with families spending $3,500 more last year and $5,900 more this year for the same goods and services. In the latest version of Washington Democrats’ budget reconciliation plan, the so-called Inflation Reduction Act, Democrats are breaking with President Biden’s pledge not to raise taxes on Americans making less than $400,000 – and in a big way:
According to a Joint Committee on Taxation (JCT) analysis, at least half of the new tax burden will be borne by Americans making less than $400,000, and roughly $17 billion worth of new taxes would fall on those earning less than $200,000.
Rather than raising taxes, Democrats should be cutting spending. Under current tax policy, thanks to the Republican-passed Tax Cuts & Jobs Act (TCJA), the federal government is bringing in plenty of revenue. Tax revenues for 2022 so far have surged 25 percent and are still on pace to exceed $5 trillion, a historic level. Tax revenues for 2022 have far exceeded the Congressional Budget Office (CBO) projections made for 2022 not only post TCJA, but even before its passage.
Washington Democrats should take their own advice and not raise taxes during Biden’s inflation recession:
- “The last thing you want to do is raise taxes in the middle of a recession.” – President Barack Obama (08/05/09)
- “The tax increases…likely would have been a headwind strong enough to blow the United States back into recession” – Treasury Secretary Janet Yellen (02/11/13)
Key Points: Democrats’ Inflation EXPANSION Act
The American Economy is in Recession under Joe Biden
- When Biden took office, CBO projected real GDP would grow 2.9 percent in the first quarter of this year. Real GDP fell by 1.6 percent.
- When Biden took office, CBO projected real GDP would grow 2.2 percent in the second quarter of this year. Real GDP fell by 0.9 percent.
- Over the last 75 years, every single time the economy has experienced consecutive quarters of negative growth, America has been in a recession.
- During the 2007-2009 recession, 9 million Americans lost their jobs and 10 million people fell into poverty, including 3 million children.
- The Federal Reserve just raised interest rates by 75 basis points – the fourth such rate increase since March – to combat the President’s inflation crisis. In total, the federal funds rate has risen by 2.25 percent, the fastest cumulative rate hike in 40 years.
- The interest rate on a 30-year fixed mortgage has doubled since Biden took office.