A new report from the Congressional Budget Office shows that Democrat-generated high inflation will persist into next year and that the Tax Cuts and Jobs Act (TCJA) resulted in higher corporate and payroll tax revenues. Ways and Means Republican Leader Rep.Kevin Brady (R-TX) issued the following statement:
“CBO’s latest report is independent proof that President Biden and Democrats in Congress bungled the economy — proving that Democrats fueled punishing inflation and made the worker crisis worse with its nearly $2 trillion “Covid Stimulus.” It also confirms that crushing Biden-Flation will continue into next year.
“The report also debunks Democrats’ repeated claim that corporate taxes are down 40 percent due to the Republican tax cuts of 2017. According to the CBO, we’ll see a whopping $2.4 trillion increase in corporate and payroll tax revenues over the next decade.
“In a third hit for Democrats, America’s economy will slow and jobs will be lost if President Biden succeeds in repealing the GOP 2017 tax cuts for families and small businesses — a vow he has made repeatedly. Why are Democrats in Washington still trying to raise taxes on local businesses that will only drive prices higher?”
- More corporate and payroll tax revenue following TCJA, despite Democrats’ claims: Over 10 years, corporate tax revenues are expected to rise $898 billion, while payroll tax revenues will go up $1.5 trillion.
- Democrats’ debunked attacks that the Tax Cuts and Jobs Act would hurt Medicare remain unfounded. CBO notes that any improvement to Medicare’s fiscal situation is the result of higher payroll taxes following passage of TCJA.
- Government checks boosted inflation: CBO confirms that government checks boosted the demand for goods and that the “high rates of inflation reflected widespread price increases for many types of goods.” This surge in demand strained supply chains.
- Government checks paid workers to not work; increase wage inflation: CBO acknowledges that supplemental unemployment insurance payments and other government checks “might also have slowed the recovery of labor force participation in 2021.” Wage inflation increased due to the shortfall of available workers relative to the demand for workers.
- Democrats’ repeal of TCJA would slow growth: CBO admits that letting TCJA’s temporary provisions expire will slow economic growth.