Long before the Biden administration misjudged the inflation threat until it was too late, it liked to claim bloated spending bills were paid for, at least as far as the middle class was concerned.
While they're not parroting the same line this time, Democrats continue to show that they have zero interest in reforming reckless government spending.
The effect on inflation will likely be significant.
Senate Finance Committee Ranking Member Mike Crapo's (R-Idaho) press office explains:
Senate Republican leaders have sent a letter to the Congressional Budget Office (CBO) and the Joint Committee on Taxation (JCT) requesting more information on the potential budgetary and economic impacts of making the temporary expansion of premium tax credits (PTC), justified as pandemic relief by Democrats, permanent.
The letter was sent by Senator Richard Burr (R-NC), Ranking Member of the Senate Health, Education, Labor and Pensions Committee, Senator Mike Crapo (R-ID), Ranking Member of the Senate Committee on Finance, and Senator Lindsey Graham (R-SC), Ranking Member of the Senate Budget Committee.
“[R]ecord-high inflation, fueled by partisan spending and irresponsible policy initiatives, continues to erode working families' wages and savings, imposing a regressive tax on those who least can afford it,” the letter states. “In light of these concerning conditions, policymakers must evaluate any new spending proposal with an especially critical eye towards its budgetary and economic impacts.”
The letter continues, “Our Democrat colleagues passed [the American Rescue Plan Act] quickly and in partisan fashion, with little time for public scrutiny and virtually no opportunity for feedback or input, including with respect to the legislation's potential to exacerbate inflationary pressures and force monetary policy responses involving interest rate hikes that significantly raise federal financing costs. As CBO's latest projections confirm, ARPA's expansion of PTCs and subsequent regulatory actions have proven even more costly than previously projected.”
“Failing to control health care spending growth risks triggering severe and sustained macroeconomic damage,” the letter concludes. “A recent CBO report showed that raising taxes to cover our current spending obligations would, among other effects, result in reduced GDP, lower take-home pay, and a shrinking labor supply. Dramatically increasing spending on PTCs would intensify the economic harm imposed on future generations saddled by the federal debt.
“These profound and diverse risks demand a comprehensive accounting of the true costs of extending the expanded PTCs.”
To read the full letter, click here.
The opinions expressed in this article are those of the author and do not necessarily reflect the positions of American Liberty News.
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Heading for Depression 2?
Nothing new about the democrats and their spending sprees. They have never cared about the deficits they create. Everyday they prove to the American people that they should never be in control of our government. They will spend this nation into bankruptcy and think nothing about it. If this country is to survive we must purge them from our government, and do it soon so that there might be a chance to survive.
The biggest deficits in my lifetime have all occurred under Republicans. The Trump tax cut is doing more to fuel deficits than the Democratic spending
This is bait. When the Republicans object and rightly so, the Democrats will scream and holler about the Republicans not caring about the plight of those affected by the, so called, Pandemic. Another play for sympathy votes before the upcoming election.
How did democratic spending fuel inflation worldwide? If the US is so bad why has it increased against world currencies?
Democrats are known for them spending recklessly and unnecessary, so none of this is a new deal. Probably every depression we have been in was from a Democrat President. I am not sure of that, but I believe so. And that is where we are heading now if the people don’t do something.