Inflation Is Still At A 40-Year High & House Democrats Are Still Pushing Their Inflation Expansion ACT

The Consumer Price Index (CPI) remained at a 40-year high in July as it increased 8.5% over the past 12 months. Instead of coming back to Washington D.C. to address America’s inflation crisis Lame Duck Speaker and House Democrats are coming back to push their Inflation Expansion Act.

MAKE NO MISTAKE: Joe Biden and House Democrats’ Inflation Expansion Act does nothing to address the skyrocketing inflation Americans face daily. The best and quickest way to address America’s inflation crisis is to rein in out-of-control government spending.

BIDEN’S ECONOMIC CRISIS BY THE NUMBERS: 

  • Inflation is a tax on ALL Americans.
  • In July, the CPI increased 8.5%, remaining at a 40-year high.
  • Food prices have increased to their highest point since 1979, an over a 40 year high.
  • Wages are not keeping up with inflation and have actually DECREASED, while prices for goods have risen.
  • Real average hourly earnings decreased 3.0%, seasonally adjusted, from July 2021 to July 2022.
  • Americans are paying more for just about everything because of inflation:
THE FACTS ABOUT THE DEMOCRATS’ INFLATION EXPANSION ACT: 
  • Spends $80 billion to allow the IRS to hire 87,000 new agents to target American families and businesses.
  • Creates zero police officers, zero veterans’ hospital nurses, and zero border patrol agents.
  • Raises taxes on businesses when Americans are already paying more for just about everything.
    • These tax increases will be passed on to the consumer, stifle reinvestment in infrastructure, R&D, and workers, and only exacerbate the current supply chain crisis.
  • Does little to meaningfully reduce inflation. According to CBO estimates, this bill would have a negligible effect on inflation this year and would only reduce inflation by .01% at best in 2023.
    • This comes at a time where Americans are facing the highest inflation in 40 years with the Consumer Price Index rising 1.3% in the last month alone.
  • CBO reports follow a study by the Penn Wharton Budget Model, which stated that the newly revived Build Back Broke bill will do little to nothing to tamp down the inflation crisis that is robbing the paychecks of hardworking Americans and would actually increase inflation in the near term.
  • Raises taxes on millions of Americans in every income bracket, including those earning less than $400,000 per year, despite Biden’s numerous pledges during his campaign to the contrary.
    • In fact, Americans making less than $400,000 will bear as much as two-thirds of the tax burden by 2031.
  • Implements socialist price control schemes for prescription drugs that will negatively impact seniors, patients, those with rare diseases, and their families.
    • As a result, prices for new drugs will be more expensive, increasing costs at the pharmacy counter and raising insurance premiums. Additionally, this will lead to less innovation and fewer cures.
  • Extends Obamacare subsidies—enacted under the American Rescue Plan and set to expire after 2022—for 3 more years, through 2025, benefiting the wealthy and subsidizing people who already have insurance.
    • This expands federal spending without enacting any meaningful reform to a broken system.
    • Incites inflationary pressure when inflation is already at a 40- year high.
  • Spends over $350 billion in “Green New Deal” initiatives. Americans deserve efficient, affordable, and American-made energy, yet Democrats continue to pursue policies that have doubled gas prices since Joe Biden took office and destroyed U.S. energy independence.
    • This bill creates an American Energy Tax by increasing fees and taxes on oil production and methane. American families will pay these taxes in the form of higher gas prices, larger heating bills, and higher consumer prices.