After Plundering Americans’ Paychecks With The Worst Inflation In 40 Years, Democrats Should Not Do It Again With Tax Hikes

Just As ‘Surging Prices For Gas, Food And Rent Catapulted U.S. Inflation To A New Four-Decade Peak In June,’ Further Sapping Americans’ Wages And Savings, Senate Democrats Are Looking To Raid Americans’ Wallets Again In A Different Way, As They Push For $1 Trillion In Tax Increases


SENATE REPUBLICAN LEADER MITCH McCONNELL (R-KY): “This morning, this all-Democrat government produced yet another absolutely terrible inflation report. Inflation during the month of June shattered the experts’ predictions. We are at 9.1% annual inflation. Yet another fresh 40-year high. The most out-of-control inflation that American families have seen since the early 1980s. Food costs are up more than 10 percent. Energy costs are up more than 40 percent. The cost of the fuel that drives us to work, delivers our goods and drives our economy are up over 60 percent. These are staggeringly bad numbers, and they were fueled directly by the reckless spending spree that Democrats rammed through on party lines last year…. It’s no secret how much the American people disapprove of the course Washington Democrats have put us on. They say so in poll after poll. So you might think by now that our colleagues would be ready to try a different approach. Guess again. President Biden and his party, fresh off of spending America into inflation, now want to tax-hike us into recession. They’re behind closed doors, playing around with what may amount to the single largest tax increase in American history…. The Democrats complaining about inflation today voted in lockstep for the bill that brought us here. And now their answer to picking families’ pockets once… is to now pick families’ pockets a second time?! The same Democrats who spent us into inflation now want to tax us right into recession.” (Sen. McConnell, Remarks, 7/13/2022)

SENATE REPUBLICAN WHIP JOHN THUNE (R-SD): “Well, inflation remains the number one issue for the American people. And I guess it shouldn't come as any surprise since it's at a 40 year high. And everything that the American people purchase today is going up, up, and up, starting with gasoline, food, grocery store. You can go right down the list. Inflation is crushing the American people. And as the leader pointed out, a lot of this got started when the Democrats decided to pass a partisan party line only two trillion dollar spending bill last year which flooded the zone with lots of dollars and created a situation where as the textbook defines inflation, too many dollars chasing too few of goods. And so we got rampant runaway inflation. The American people are paying the price. And what is the Democrat prescription? To double down; to spend more and to tax more.” (Sen. Thune, Press Conference, 7/12/2022)

SEN. JONI ERNST (R-IA): “Iowans are still feeling the pinch of inflation, and all Americans are feeling this hurt. And just recently I've heard stories about folks that are actually taking their -- their goods, their jewelry, their electronics to pawn shops so they can get additional money to pay for gas. You know, this is really hurting the American people…. This is what Iowans are resorting to. Their wages are not keeping up with inflation, and we have an Administration right now that simply doesn't care. And what is the Democrats' response to the economic hardship that not just Iowans, but all Americans are facing? It's to raise taxes on them. They're pushing this reckless tax and spend bill all over again. Let's hike up taxes as we're facing a potential recession. This is not what Americans need right now.” (Sen. Ernst, Press Conference, 7/12/2022)

Inflation In June Increased 9.1% Year-On-Year, Which ‘Catapulted U.S. Inflation To A New Four-Decade Peak’ And ‘Seemed To Counter The Narrative That Inflation May Be Peaking’

(U.S. Senate Finance Committee Ranking Member, Press Release, 7/13/2022)

“Surging prices for gas, food and rent catapulted U.S. inflation to a new four-decade peak in June, further pressuring households and likely sealing the case for another large interest rate hike by the Federal Reserve, with higher borrowing costs to follow. Consumer prices soared 9.1% compared with a year earlier, the government said Wednesday, the biggest yearly increase since 1981, and up from an 8.6% jump in May. On a monthly basis, prices rose 1.3% from May to June, another substantial increase, after prices had jumped 1% from April to May.” (“US Inflation Reached A New 40-Year High In June Of 9.1%,” The Associated Press, 7/13/2022)

  • “[T]he breadth of the price gains shows how rising costs have seeped into nearly every corner of the economy. Grocery prices have jumped 12.2% compared with a year ago, the steepest such climb since 1979. Rents have risen 5.8%, the most since 1986. New car prices have increased 11.4% from a year earlier. And airline fares, one of the few items to post a price decline in June, are nevertheless up 34% from a year earlier.” (“US Inflation Reached A New 40-Year High In June Of 9.1%,” The Associated Press, 7/13/2022)

US inflation accelerated in June by more than forecast, underscoring relentless price pressures that will keep the Federal Reserve on track for another big interest-rate hike later this month. The consumer price index rose 9.1% from a year earlier in a broad-based advance, the largest gain since the end of 1981, Labor Department data showed Wednesday. The widely followed inflation gauge increased 1.3% from a month earlier, the most since 2005, reflecting higher gasoline, shelter and food costs. …The so-called core CPI, which strips out the more volatile food and energy components, advanced 0.7% from the prior month and 5.9% from a year ago, above forecasts.” (“US Inflation Quickens to 9.1%, Amping Up Fed Pressure to Go Big,” Bloomberg, 7/13/2022)

“Excluding volatile food and energy prices, so-called core CPI increased 5.9%, compared to the 5.7% estimate. On a monthly basis, headline CPI rose 1.3% and core CPI was up 0.7%, compared to respective estimates of 1.1% and 0.5%. Taken together, the numbers seemed to counter the narrative that inflation may be peaking, as the gains were based across a variety of categories.” (“Inflation Rose 9.1% In June, Even More Than Expected, As Price Pressures Intensify,” CNBC, 7/13/2022)


‘The Ongoing Price Increases Underscore The Brutal Impact That Inflation Has Inflicted On Many Families’

“The ongoing price increases underscore the brutal impact that inflation has inflicted on many families, with the costs of necessities, in particular, rising much faster than average incomes. Lower-income and Black and Hispanic Americans have been hit especially hard, because a disproportionate share of their income goes toward such essentials as housing, transportation and food.” (“US Inflation Reached A New 40-Year High In June Of 9.1%,” The Associated Press, 7/13/2022)

  • “Housing costs have also risen sharply. A shortage of houses for sale has kept prices high just as mortgage rates have also soared. With many people priced out of the market for houses and looking instead to rent, demand for apartments has sent rental rates beyond affordable levels. The average cost of new leases has jumped 14% in the past year, according to real estate brokerage Redfin, to an average of $2,016 a month.” (“US Inflation Reached A New 40-Year High In June Of 9.1%,” The Associated Press, 7/13/2022)

“When 46-year-old Elizabeth Ray saw the high costs on her heating bill over the winter, she said she hit a tipping point. The Philadelphia resident realized she needed to start dialing back on spending. Clothing was one of the first categories on the chopping block, she said. She plans to wear gym clothes, which she stocked up on after Covid-19 hit, until they disintegrate. Ms. Ray is also curtailing her restaurant visits, a sharp shift from earlier in the pandemic. ‘I was going out by myself several times a week, buying food, ordering drinks, living large, tipping the waitstaff,’ she said. ‘Now I’m kind of like, “Guys, you’re on your own. I can no longer help. I need to hide under my bed and save every dollar I can.”’” (“Americans Have Had It With Inflation,” The Wall Street Journal, 7/03/2022)

“For 70-year-old Eileen Pollock, skyrocketing gas prices mean that visits to the library—about 5 miles round trip—no longer feel free. Miss Pollock, who is retired and lives in Pikesville, Md., typically only goes to the library once or twice a week now…. She has also pulled back on entertainment spending in recent months. For instance, she considered taking her grandniece to see the ‘Wizard of Oz’ at the symphony, but decided the event would be too expensive, given ticket and parking prices.” (“Americans Have Had It With Inflation,” The Wall Street Journal, 7/03/2022)

“Joëlle Harris, 48, of Eugene, Ore., doesn’t buy beef anymore. She and her husband used to have the occasional steak, but now, they stretch meat—like a pork loin—across multiple dishes. ‘We kind of try to eat what we have while we have it,’ Ms. Harris said. Ms. Ray used to enjoy having a scented candle warm her home office and diffuse a light fragrance, such as ocean breeze. She hasn’t purchased one in months. ‘I don’t see the light for the inflation tunnel,’ Ms. Ray said. ‘It seems like more darkness.’” (“Americans Have Had It With Inflation,” The Wall Street Journal, 7/03/2022)


FLASHBACK: Last December, President Biden Said We Were At The ‘Peak Of The [Inflation] Crisis’ But Inflation Surged Ahead At 7% Or More Every Month Since

PRESIDENT JOE BIDEN: “It’s the peak of the crisis, and I think you’ll see it change sooner than — quicker than — more rapidly than it will take than most people think. Every other aspect of the economy is racing ahead. It’s doing incredibly well.  We’ve never had this kind of growth in 60 years. But inflation is affecting people’s lives. … I think you’re going to see — you’ve already begun to see, and you’re going to see over the next couple months the oil prices, gas prices — prices of gas pump come down. (President Biden, “Remarks by President Biden at the Summit for Democracy Closing Session,” 12/10/2021)

June marked the FOURTEENTH consecutive month in which inflation rose at least 5 percent. (Bureau of Labor Statistics, Accessed 7/13/2022)


Over The Past Year, Prices For Goods And Services Essential To Everyday Life Have Skyrocketed, With Grocery Prices Increasing The Most Since The 1970s

The price of all items increased 9.1% year-on-year. (Bureau of Labor Statistics, Accessed 7/13/2022)

Food prices increased 10.4% year-on-year, the largest increase since 1981. (Bureau of Labor Statistics, Accessed 7/13/2022)

Grocery (food at home) prices increased 12.2% year-on-year, the largest increase since 1979. (Bureau of Labor Statistics, Accessed 7/13/2022)

Prices for dining out (food away from home) increased 7.7% year-on-year, the largest increase since 1981. (Bureau of Labor Statistics, Accessed 7/13/2022)

Electricity prices increased 13.7% year-on-year, the largest increase since 2006. (Bureau of Labor Statistics, Accessed 7/13/2022)

Gasoline prices have increased 59.9% year-on-year, the largest since 1980. (Bureau of Labor Statistics, Accessed 7/13/2022)

Prices for housing increased 7.3% year-on-year, the largest increase since 1982. (Bureau of Labor Statistics, Accessed 7/13/2022)

Rental prices for a primary residence increased 5.8% year-on-year, the largest increase since 1986. (Bureau of Labor Statistics, Accessed 7/13/2022)

Prices for services overall increased 6.2% year-on-year, the largest increase 1991. (Bureau of Labor Statistics, Accessed 7/13/2022)


Compounding The Problem, Americans Are Now Losing Even More Of Their Paychecks To Inflation, With Year-On-Year Real Average Weekly Earnings Decreasing 4.4%

“Real average hourly earnings decreased 3.6 percent, seasonally adjusted, from June 2021 to June 2022. The change in real average hourly earnings combined with a decrease of 0.9 percent in the average workweek resulted in a 4.4-percent decrease in real average weekly earnings over this period.” (Bureau of Labor Statistics, Press Release, Accessed 6/10/2022)


SEN. JOE MANCHIN (D-WV): ‘Inflation, Inflation, Inflation. Gas Prices, Gas Prices, Gas Prices. Food Prices, Food Prices, Food Prices. And Energy’

SEN. JOE MANCHIN (D-WV): “I’ve told you all how many times? Inflation, inflation, inflation. Gas prices, gas prices, gas prices. Food prices, food prices, food prices. And energy.” (Punchbowl News’ John Bresnahan, @bresreports, 7/12/2022)


Just As Americans Are Reeling From Inflation Eroding Their Paychecks, Democrats Are Proposing To Take Even More Out Of Americans’ Wallets With $1 Trillion In Tax Hikes

“Roughly speaking, Manchin and Schumer are working toward legislation that provides $1 trillion in new revenues, half of which would go toward deficit reduction and half of which would go toward energy and health spending. Such a deal is hypothetical at the moment: The tax and energy pieces remain in major flux.” (“Dems’ Climate And Tax Agenda To Consume Congress In July,” Politico, 7/7/2022)

  • “Senate Democrats also have a deal to raise taxes on ‘pass through’ income for small business owners who make more than $400,000 annually ($500,000 for couples), with the revenue generated by this tax going to boost Medicare’s solvency.” (Punchbowl AM, 7/11/2022)



Related Issues: Middle Class, Economy, Inflation, Senate Democrats, Taxes