With inflation at a 40-year high and wiping away three years worth of workers’ wage gains, economic experts – including those preferred by the White House – are skeptical of Democrats’ scramble to reverse rising prices by passing “chunks” of the President’s $5 trillion tax-and-spend bill.
As Bloomberg reports, Mark Zandi, the chief economist for Moody’s Analytics (the White House’s preferred economic forecaster), said:
“‘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.”
Bottom Line: Even the experts agree: Coming out of a pandemic and facing 40-year high inflation, the last thing Americans need are tax hikes.
Bidenflation is crushing America’s middle class and Main Street.
- 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.
- 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.
- With more than 60 percent of Main Street businesses reporting they were forced to raise their prices to keep up with inflation – which has reached the highest rate since 1982 – economists are warning the U.S. is at risk of a wage-price spiral.
- For working Americans, in just one year, Democrats wiped out three years of wage gains through inflation.
Democrats’ crippling tax hikes will fall on American families and small businesses.
- The non-partisan Joint Committee on Taxation (JCT) found that workers will shoulder the burden of Democrats’ tax hikes. Over the long term, 66.3 percent of a corporate tax increase would be borne by lower- and middle-income taxpayers.
- It’s not just the JCT – analysis from the Left-leaning Tax Policy Center finds that President Biden’s overall tax plan will raise taxes on 75 percent of middle-class families next year, rising to 95 percent of middle-class families over the long term.