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WRAP-UP: President Biden’s Budget Proposes More Tax Increases That Cripple the Economy

June 09, 2022

Democrats’ policies have led to unprecedented worker shortages, supply chain disruptions, and price increases that are outpacing workers’ wage growth. The more than $4 trillion in tax increases in President Biden’s proposed budget would have a crippling effect on our economic recovery.

Ways and Means Republicans underscored their priorities to get the economy back on track in a full committee hearing with Treasury Secretary Janet Yellen.

READ: Brady: Under President Biden, Life is Harder for American Families and Small Businesses

Ways and Means Republican Leader Rep. Kevin Brady (R-TX) warned that the Treasury is surrendering the U.S. tax base to foreign governments in global tax negotiations. “Given that our taxbase is for our U.S. taxpayers, will you commit to walk away from any deal on Pillar One or Pillar Two that results in lower tax revenues for the United States?” Rep. Brady asked.

From the Wall Street Journal:

“Mr. Brady warned about the risks of the U.S. ceding some taxing authority and asked whether the administration would walk away from any deal that reduces U.S. revenue.

“Ms. Yellen didn’t answer directly, but noted that a full analysis of the revenue impact can’t be done until the negotiations on that part of the deal are complete.”

Republican Leader on the Health Subcommittee Rep. Vern Buchanan (R-FL) cautioned that Democrats’ proposed $2 trillion in additional spending would worsen inflation on Americans.

Republican Leader on the Trade Subcommittee Rep. Adrian Smith (R-NE) asked about President Biden’s support for the windfall tax on domestic energy production. Rep. Smith also highlighted that wage growth for working families is being wiped away by over 8 percent inflation.

Republican Leader on the Select Revenue Measures Subcommittee Rep. Mike Kelly (R-PA) discussed how the Biden Administration and their inflationary policies are out of touch with challenges American families face. Rep. Kelly highlighted the disconnect between Washington Democrats’ priorities and the lives of everyday Americans. 

Rep. Jason Smith (R-MO) asked whether there is a role for fiscal restraint in deficit reduction, to which Secretary Yellen agreed. And after one full year since the leak of taxpayer data from the IRS to ProPublica, Rep. Smith asked for an update on the investigation.

After President Biden killed the Keystone XL Pipeline and halted new leases on federal lands, Rep. Tom Rice (R-SC) asked whether President Biden is intentionally driving up energy prices on American families. “Couldn’t the federal government do more to increase supply?” Rep. Rice asked.

Rep. David Schweikert (R-AZ): “I’m concerned that we’re focusing on today’s inflation number and not realizing the economic devastation that we’re going to see throughout the coming decade.”

Rep. Jackie Walorski (R-IN) asked Secretary Yellen about a timeline for providing inflation relief to manufacturers, small businesses, and consumers.

“Inflation is a tax on the American people, and the people that make the least are the ones that are most affected by it,” Rep. Darin LaHood (R-IL) said, asking whether $4 trillion in additional tax hikes would worsen inflation on Americans and small businesses. 

“By pouring trillions of dollars more into the economy than is necessary, we’ve fueled an inflation crisis,” warned Rep. Brad Wenstrup (R-OH). “The President’s Fiscal Year 2023 budget doubles down on these bad policies.” Rep. Wenstrup underscored that the Tax Cuts and Jobs Act (TCJA) made America more competitive, while the Biden Administration is proposing policies that will send jobs and suppliers overseas.

“At the center of this self-inflicted economic disaster is an energy crisis that is pummeling working families, it’s pummeling every American consumer. I’ve heard the blame game,” Rep. Jodey Arrington (R-TX) said, noting that the Biden Administration could be doing more to unleash American-made energy.

Rep. Drew Ferguson (R-GA): I think it’s a little disingenuous to say President Biden is doing everything that he can and the Administration is doing everything they can to increase energy production.” He also reiterated the need for an update on the IRS data leak that exposed taxpayers’ private information.

Rep. Estes (R-KS): After GOP tax reform in 2017, corporate tax revenues for the first half of the fiscal year are already 22 percent higher than last year and last year was already a record high in terms of tax receipts.”

Rep. Lloyd Smucker (R-PA): “You go outside of the beltway one step and there is no one in America who will believe the Biden Admin is reducing deficits. It’s harmful to the future of the country and I don’t understand how you claim deficits are being reduced when it’s obviously not the case.”

“I hope that we want to take care of our American companies, our American jobs and our American people. We want those good paying jobs in our country,” said Rep. Kevin Hern (R-OK), discussing the Biden Administration’s foreign tax credit regulations that punish Americans and encourage companies to offshore jobs and IP.

Rep. Carol Miller (R-WV): “President Biden has even turned to foreign dictators for more oil but won’t enable us to drill more at home.”

Rep. Greg Murphy (R-NC): “We know for a fact that since Biden took office, the inflationary rate in this country rose, rose, and rose. It was 7.9 percent the day prior to the Russian invasion. So to blame fuel prices and everything on the invasion of the Russian dictator is absolutely incorrect.”