The consumer price index increased by 8.3 percent on an annualized basis in April, according to the Bureau of Labor Statistics (BLS). Under the Biden economy, inflation has been surging for months.
In January 2021, before Joe Biden took over the presidency, annual inflation was at a stable 1.4 percent. A year into Biden’s presidency, inflation has increased almost six 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.
In July of 2021, the Biden administration was 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.
Since then, the Biden administration has blamed inflation on everything except their own policies: the Russia-Ukraine war, corporations, the pandemic, shipping conglomerates, etc.
The erosion of purchasing power is especially concerning given that wages are decreasing. Real average hourly earnings have decreased by 2.6 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 30.3 percent in the past 12 months.
- Gasoline has increased by 43.6 percent in the past 12 months.
- Used cars and trucks have increased by 22.7 percent in the past 12 months.
- Meat has increased 13.9 percent in the past 12 months.
- Bacon has increased 16.3 percent in the past 12 months.
- Poultry has increased 15.3 percent in the past 12 months.
- Eggs have increased 22.6 percent in the past 12 months.
- Fresh fruits and vegetables have increased 7.4 percent in the past 12 months.
- Fresh fish and seafood has increased 13 percent in the past 12 months.
- Furniture and bedding have increased 15 percent in the past 12 months.
- Men’s suits and sport coats have increased 21.7 percent in the past 12 months.
- Women’s dresses have increased 8.3 percent in the past 12 months.
- Airfares have increased 33.3 percent in the past 12 months.
Since January 2021, these price increases have surged. The data points below indicate the change in price, over a 12 month period, for a number of items:
Biden Administration policies like paying Americans not to work, pausing federal student loan repayments, and canceling the Keystone Pipeline have contributed to high inflation.
However, if the administration has their way, this problem will only get worse.
President Biden’s proposed Fiscal Year 2023 budget proposal is packed with trillions in new spending and tax hikes on the American people. His budget includes 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.
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. 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 policies pushed by the Biden Administration and congressional Democrats have led to surging inflation that have harmed American families and businesses. Now, they are pushing proposals that will make these problems worse.