Skip to content

J. Smith: Biden Spending Spree Will Raise Deficits to Highest in History, Worsen Inflation

June 17, 2022

While President Biden denies that his $2 trillion COVID stimulus sabotaged our economic recovery, he is doubling down on more spending and crippling tax hikes that would worsen inflation. Warning what’s at stake for American families under President Biden’s agenda, Ways and Means Republican and Republican Leader on the Budget Committee Rep. Jason Smith (R-MO) wrote an op-ed for the Washington Examiner.

 

CLICK HERE to read the full op-ed.

 

Key Excerpts: 

 

Democrats’ $2 trillion in COVID spending fueled the inflation fire:

 

  •  “At the beginning of the Biden Administration, Washington Democrats insisted it was necessary to spend trillions of dollars to jump-start the economy and combat COVID, despite analysis from the Congressional Budget Office that showed the economy was well on its way to recovery.”
  • “In just a few short months after Democrats enacted $2 trillion in deficit spending, prices began to spike, the purchasing power of paychecks shrank, and supply chains crumbled.”

 

READ: Fact Check: Debunking Six Misleading Inflation Claims

 

Inflation has skyrocketed since President Biden took office:

 

  • “Time and again, when confronted with the truth about how his reckless deficit spending created the inflation crisis, President Joe Biden has tried to flip the script — first denying inflation was a problem and then trotting out misleading charts and graphs to make the absurd claim that he is all about deficit reduction.”

 

READ: Fact Check: Democrats’ Bidenflation Denial

 

Despite historic tax revenues, Democrats have vowed to repeal TCJA:

 

  • “Right now, only two things are saving the Biden Administration from an even worse fiscal outlook. The Republican-passed Tax Cuts and Jobs Act — which lowered rates and provided tax relief to the public — is generating record revenue for the federal government. Last year, tax revenues grew by 18 percent, the highest in almost 50 years, outpacing what CBO had projected for 2021 under the TCJA. Revenues for 2022 so far have surged 29 percent, putting it on pace to be the largest growth since 1951 and the largest share of GDP ever. Revenues for 2022 are outpacing not only what CBO estimated for 2022 after the enactment of tax relief but also higher than what CBO projected before TCJA.”

 

READ: Fact Check: Higher Corporate Tax Revenue After GOP Tax Reform Debunks Another Democrat Myth

 

READ: Fact Check: Americans Need Solutions to Inflation, Not Higher Taxes

 

While Americans are suffering from inflation, President Biden is doubling down on crippling tax hikes and inflationary spending that agenda would worsen the deficit and send prices even higher:

 

  • “The other thing saving Biden from posting even higher annual deficits is the defeat of his Build Back Broke agenda, which CBO confirmed would have cost $5 trillion and added $3 trillion to the debt.”
  • “Neither the TCJA nor the failure of Build Back Broke was done by Biden. In fact, the Biden administration wants to undo TCJA tax relief and push through piecemeal the items that were in Build Back Broke. A recent study showed that 64 percent of families are living paycheck to paycheck at a time when real wages have declined 4.2 percent since Biden took office. The average family will spend $5,200 more this year for the same goods and services, on top of the $3,500 inflation tax they paid last year. A new report out this month shows that households will spend $5,000 this year on gas alone.”

 

READ: LETTER: Biden Budget Doubles Down on Democrats’ Economic Sabotage, Worsens Americans’ Health Care, and Bungles the Major Crises American Families Face