Today, House Budget Committee Republican Leader Jason Smith (MO-08) released the following statement after the Consumer Price Index (CPI) showed inflation at a forty-year high of 8.5 percent, up 13.7 percent since President Biden took office:
“Today’s report comes as Congressional Democrats are pushing a partisan $745 billion reconciliation bill that will add fuel to the inflation fire that is burning through Americans’ paychecks. Thanks to the Democrats’ reckless spending policies, Americans are already facing the highest inflation in 40 years – up 13.7 percent since President Biden took office – and a recession. Now Democrats want to add to that pain with more spending, more taxes, and more debt.
“The Democrats’ Inflation Act throws $599 billion in budget gimmicks and new taxes at American families and businesses. $17 billion of the bill’s tax increases fall on taxpayers making less than $200,000. It adds $146 billion to the debt – and even with their budget gimmicks still manages to add $54 billion in debt over the next five years. Of the supposed savings in the bill, 80 percent will not show up until after 2029. In short, as the Congressional Budget Office, Penn-Wharton, and over 230 economists have said, this bill will do nothing to tame the inflation crisis and actually may make it worse. Instead of trying to spend their way out of inflation and tax their way out of a recession, Washington Democrats should focus on lowering prices and delivering real relief for families.”
Key Points: Democrats’ Inflation Act
Biden’s Inflation Recession
- Inflation is at a forty-year high of 8.5 percent
- Inflation has increased 13.7 percent since President Biden took office
- Real wages have decreased 4.5 percent since President Biden took office
- When Biden took office, CBO projected real GDP would grow 2.9 percent in the first quarter of this year. Real GDP fell by 1.6 percent.
- When Biden took office, CBO projected real GDP would grow 2.2 percent in the second quarter of this year. Real GDP fell by 0.9 percent.
- Over the last 75 years, every single time the economy has experienced consecutive quarters of negative growth, America has been in a recession.
- During the 2007-2009 recession, 9 million Americans lost their jobs and 10 million people fell into poverty, including 3 million children.
- The Federal Reserve recently raised interest rates by 75 basis points – the fourth such rate increase since March – to combat the President’s inflation crisis. In total, the federal funds rate has risen by 2.25 percent, the fastest cumulative rate hike in 40 years.
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