“Far from starving the government, the Tax Cuts and Jobs Act generated so much economic growth that the entire bill has apparently paid for itself,” according to an editorial by the Washington Examiner on a new report from the nonpartisan Congressional Budget Office (CBO), which also showed that Democrat-policies generated high inflation that will persist into next year:
- Job growth and higher wages were fueled by tax reform: “A rising payroll tax and individual income tax revenues also show that the tax cuts boosted job growth and wages as well.”
- Lower taxes led to historically high revenues: “The CBO says that even with lower rates, total revenues in 2022 ‘are projected to equal 19.6 percent of the nation’s gross domestic product — the largest annual revenues relative to the size of the economy since 2000.’ This is 2.3 percent higher than the average of the past 50 years, which includes a period in which the top income tax rate was 70 percent.”
- The deficit can’t be solved by tax hikes, but by cutting Washington Democrats’ spending: “[T]his nonpartisan source says that Biden’s preferred fix, raising taxes, will only make the economy worse… today’s outlandishly high deficits are the result not of too little revenue but of far, far too much spending.”
- President Biden’s policies fueled inflation: “The Congressional Budget Office has just confirmed that President Joe Biden is blameworthy for the record-high inflation that is punishing workers. […] CBO noted that the stimulus checks sent to every family significantly boosted demand, causing inflationary pressure on its own. But there’s more. By paying workers not to work, Biden’s COVID stimulus artificially ‘slowed the recovery of labor force participation.’ As noted by Texas Rep. Kevin Brady, the top Republican on the Ways and Means Committee, this lack of workers strained supply chains, thus providing a second source of upward pressure on prices.”
CLICK HERE to read the full editorial.
KEY TAKEAWAYS:
Democrats’ $2 trillion so-called COVID stimulus fueled the inflation fire.
- Analysis from the San Francisco Federal Reserve finds that U.S. core inflation is higher than other nations – and attributes a part of it to the $2 trillion “stimulus.” These findings were echoed by the CBO.
WATCH: Brady: CBO Report Shows Biden Economy is a Grand Slam of Misery
Democrats have sabotaged our economic recovery, while touting “recovered” jobs as “new” jobs.
- In January, ADP economist Nela Richardson warned that “all the jobs that we have seen gained are recovered jobs that were lost. We are not yet producing new jobs.”
- The St. Louis Fed found that had states across the country ended unemployment bonuses, employment would have increased by 1.6 million jobs – bolstering our economic recovery.
President Biden’s “Build Back Better” agenda will make inflation worse, slow our economy, worsen our debt, kill U.S. jobs, and cut workers’ paychecks.
- President Biden and congressional Democrats have attacked traditional energy, proposing to raise taxes by $145 billion on Made-in-America oil and gas, pipeline and refining firms – raising fuel prices, and leaving America more dependent on foreign oil.
- President Biden’s trade moratorium has worsened both inflation and broken supply chains. The White House has failed to pursue an ambitious trade agenda that opens up new markets and enforces existing trade agreements.
- Even Mark Zandi, the White House’s preferred economic forecaster, 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.”
READ: President Biden Doesn’t Have a Plan to Fight Inflation