“Who raises taxes heading into a recession?” Republican Leader on the House Committee on Ways and Means Rep. Kevin Brady (R-TX) warned on CNBC’s Squawk Box. This comes amid ongoing discussions by Senate Democrats on a so-called “slimmed down” Build Back Better agenda that would raise taxes on Main Street businesses and working families.
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Democrats’ so-called “slimmed down” Build Back Better will make inflation worse.
“Our inflation overall is running about three points higher in America than it is in Europe and much of the rest of the world–that’s driven by Joe Biden’s policies in a big way.
“As long as we have the Covid-era funding, I think we need to lower taxes and not raise them. Senate Democrats are getting close to with a ‘slimmed-down’ Build Back Better that still has a trillion dollars of taxes that will drive inflation longer here in America, but also is going to rob money that businesses need to fix this supply chain crisis. I also think it is going to put the U.S. at a huge economic disadvantage competitively to our foreign competitors.
“Who raises taxes heading into a recession?”
A ‘slimmed down” Build Back Better includes $145 billion in tax hikes on American-made energy.
“In this slimmed down version of Build Back Better is another $145 billion we reported that would land on energy companies – those that produce and refine. So at the same time the President is tweeting out to gas stations: ‘lower your prices,’ he is pushing for higher taxes that will drive fuel prices higher.
“None of this makes sense, especially in a world where we have a number of countries lowering their taxes to try to tamp down inflation. We have a President just – again, it is both in ignorance of it. I think he is confused, frankly, or the Administration is – to be fair, his Administration is confused and very misleading here.”
President Biden doesn’t have an effective plan to bring down prices.
“The Biden Administration is trying to play a political game here that just isn’t working to tamp down this raging inflation. We see it obviously in energy, the tapping of the Strategic Petroleum Reserve – it did nothing. The new gas tax holiday, which most people think will save the average American family $7 over three months.
“On the Chinese tariffs my thought is, look, I’m guessing they’re going to do some roll backs that are another political gimmick that doesn’t really have any impact on consumer goods. As you know, I don’t like tariffs. Tariffs are taxes. I think they drive prices up, they distort the economy in a major way, but the President really isn’t tackling this the right way. I just think it is another act of theater.”
Republicans have outlined steps to fight inflation.
“First, stop spending so much, so get that Covid-era spending out of the budget that’s still there. It is going to fuel more inflation. Secondly, we need to reconnect workers to their jobs: We have a real worker crisis here that’s driving inflation. Third, rather than raise taxes, we would permanently lower them by making the Tax Cuts and Jobs Act permanent. That will give businesses the incentive, including small businesses, to reinvest back in their jobs, in their workers, and in new equipment. Fourth, tackle energy prices: We would fight to have a green light for more American-made energy including producing, refining, pipelines, and investing. As you know, the Administration is trying to step on the air hose for money that would capitalize American-made energy here.
“There’s four concrete areas right off the bat. And then there’s the regulatory burden: I would argue every business is paying more under this President because of regulation that ends up in higher prices, too.”