After President Biden’s first year in office, inflation shot up to a 40-year record of over 7 percent, which disproportionately hurts lower-income earners more than their wealthier counterparts. The lowest-earning households were hit by higher inflation than top households. In other words, Bidenflation is a tax on lower-income Americans.
As inflation erodes workers paychecks, President Biden proposed additional tax hikes that will leave workers further behind. Even the White House’s preferred economic forecaster, Moody’s Analytics, says the Build Back Better bill will worsen inflation:
“‘None of these ideas so far will help to a meaningful degree, and could do some harm because they could juice up demand at a time supply is constrained by the pandemic and worsen inflation,’ said Mark Zandi, chief economist for Moody’s Analytics.”
KEY BACKGROUND:
Bidenflation is crushing America’s middle class and Main Street.
- America’s lowest-income households experienced an inflation rate of 7.6 percent while higher income households saw 6.5 percent inflation.
- According to Gallup, 71 percent of low-income households experienced some level of hardship due to rising prices when less than a third of high income households experienced hardship.
- President Biden claims that inflation has peaked, dismissing it as “transitory” and a “high-class problem,” but it’s clear that inflation is only continuing to rise and hits lower- and middle-income Americans the hardest.
- Penn-Wharton Budget Model estimated that higher prices outpaced an increase in earnings for many households earning less than $60,000.
- The Congressional Budget Office (CBO) and the Penn-Wharton Budget Model have also estimated that President Biden’s inflation tax costs the typical family $5,000 a year, and hits the middle class and those just starting their career or families the hardest.
- For working Americans, in just one year, Democrats wiped out three years of wage gains through inflation.
READ: Bidenflation Is Costing American Households $250 Each Month