House Speaker Nancy Pelosi (D-Calif.) and Democrat leadership want to force a vote on their socialist multi-trillion tax and spending bill this week even though the Congressional Budget Office has announced they will not release a score of the legislation until Friday.
To date, five House Democrats – Reps. Ed Case (D-Hawaii), Josh Gottheimer (D-N.J.), Stephanie Murphy (D-Fla.), Kathleen Rice (D-N.Y.) and Kurt Schrader (D-Ore.) — have said they want to see a CBO score before voting on this legislation.
To be clear, this massive legislation should be rejected. However, the least lawmakers can do is wait for a score given the complex interactions of many policies contained in the Democrat legislation.
While the cost of the plan is steep, we currently do not know exactly how much it costs because the Congressional Budget Office has not yet completed its score.
There is also significant uncertainty over how this massive, 2,000+ page bill will impact healthcare costs and access. Senate Democrats have suggested expanding drug price controls into the commercial market, which would only create greater uncertainty over the impacts this bill would have over the healthcare system.
Democrats are also pushing this legislation as significant uncertainty over the state of the economy persists. Inflation is at a 31-year high with the consumer price index increasing by 6.2 percent in October on an annualized basis.
Key household products have increased significantly in the past year. Gasoline has increased 49.6 percent in the past 12 months, while meats, poultry, and eggs have increased 11.9 percent in the past 12 months. Furniture and bedding have increased 12.0 percent, TVs have increased 10.4 percent, and bacon has increased 20.2 percent.
According to an analysis by Moody’s analytics, inflation is forcing a family with median household income of $70,000 to spend $175 more per month on essentials like food, fuel, and housing.
This erosion of purchasing power is especially concerning given that wages are decreasing. Real average hourly earnings for all employees decreased 0.5 percent from September to October, seasonally adjusted. In the past year, since October 2020, real average hourly earnings decreased 1.2 percent, seasonally adjusted.
The reconciliation bill also includes massive tax hikes on businesses, like the 15 percent global minimum tax, 15 percent domestic minimum tax, and a new surtax on adjusted gross income (AGI) that will hit pass through businesses. This, similarly, will be passed on to consumers through higher prices. According to a 2020 National Bureau of Economic Research paper, 31 percent of the corporate tax rate is borne by consumers through higher prices of goods and services.
By an 81 to 19 margin, voters believe raising taxes on corporations will increase the cost of goods and services, according to a new poll conducted by HarrisX.
The Democrat’s massive socialist multi-trillion-dollar legislation is a reckless piece of legislation. This bill should be rejected. However, simply being able to read the bill and know what it does should be the bare minimum requirement for legislation to be voted on.