The consumer price index increased by 8.5 percent on an annualized basis in March, according to the Bureau of Labor Statistics (BLS), setting yet another 40 year high for the fifth month in a row. In March alone, inflation increased by 1.2 percent.
In January 2021, before Joe Biden took over the presidency, annual inflation was at a stable 1.4 percent. Just one year into Biden’s presidency, inflation has increased by more than five times. While inflation has already hit American families hard, Democrats are pushing policies which would make this problem even worse, like trillions in tax increases and wasteful spending.
Since July of 2021, the Biden administration has been insisting this problem would go away. Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen described this inflation as “transitory.” Evidently, those claims have not held up.
Now, the Biden administration is even trying to blame inflation on the Russia-Ukraine war, despite surging inflation pre-existing the conflict by nearly a year.
The erosion of purchasing power is especially concerning given that wages are decreasing. Real average hourly earnings have decreased by 2.7 percent over the past year.
According to BLS, the cost of many goods and services have increased significantly over the past year:
- Energy has increased by 32 percent in the past 12 months.
- Gasoline has increased by 48 percent in the past 12 months.
- Used cars and trucks have increased by 35.3 percent in the past 12 months.
- Beef has increased 16 percent in the past 12 months.
- Bacon has increased 18.2 percent in the past 12 months.
- Chicken has increased 13.4 percent in the past 12 months.
- Eggs have increased 11.2 percent in the past 12 months.
- Fresh fruits have increased 10.1 percent in the past 12 months.
- Furniture and bedding have increased 15.8 percent in the past 12 months.
- Men’s suits and sport coats have increased 14.5 percent in the past 12 months.
- Women’s dresses have increased 10.1 percent in the past 12 months.
- Airfares have increased 23.6 percent in the past 12 months.
It’s hard to believe that, during this time of economic turmoil and the threat of recession, President Biden just released a Fiscal Year 2023 budget proposal packed with trillions in new spending and tax hikes on the American people. His budget included at least $6 trillion in spending and 36 tax increases on American individuals and businesses totaling $2.5 trillion over the next decade. This includes 11 tax increases on the oil and gas industry at a time when the price of gasoline is at record highs, as shown above.
Other Biden Administration policies that have successfully been implemented, like paying Americans not to work, expanding tax credits, pausing federal student loan repayments, canceling the Keystone Pipeline, and more, have already served to worsen inflation.
Biden’s proposal includes massive tax hikes on businesses, like hiking the corporate income tax rate to 28 percent, imposing a 15 percent global minimum tax, and increasing the top individual income tax rate which will hit pass through businesses.
These tax hikes will be passed on to consumers through higher prices, as if rampant inflation wasn’t painful enough. 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.
Further, reckless spending on climate initiatives, welfare programs, and supersizing the IRS will also exacerbate inflation.
The Biden Administration and congressional Democrats who have eagerly supported the President’s proposal, seem willing to sacrifice Americans’ financial security in order to pass their Leftist agenda before they lose control of the government.