Officials in the Congressional Budget Office (CBO) have released reports that squarely place the rate of inflation on President Biden’s stimulus efforts during the height of the COVID-19 Pandemic.
The CBO notes that President Biden is culpable for the record-high inflation creating undue pressure on America’s workforce in its latest annual report. The nonpartisan CBO report also says that Biden’s preferred fix, increasing taxes, will worsen the economy.
The CBO’s annual economic outlook squarely blames Biden’s 2021 COVID stimulus bill for today’s high inflation. The report notes that the stimulus checks sent to Americans in 2021 significantly boosted demand, causing inflationary pressure.
The report also notes that Biden’s COVID stimulus artificially “slowed the recovery of labor force participation” by paying workers not to work. The continued lack of employees has strained supply chains, creating an additional source of upward pressure on consumer prices.
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The CBO predicts inflation will continue into 2023. It notes that inflation may only be temporarily softened only by the Federal Reserve’s willingness to raise interest rates. However, it states that the rate hikes will likely cause the economy to slow or even contract.
Biden wants to worsen the economic situation by repealing the 2017 Tax Cuts and Jobs Act.
According to the CBO’s report, federal corporate income tax collections in 2017, before the rate cut, came in at $297 billion. However, by 2021, tax collections had increased to $372 billion. This represents a 25% increase in just four years, which significantly outpaces current inflationary growth, boosting the overall economy.
Only two things are saving the economy from even more disastrous economic policy. Those are Senators Joe Manchin and Kyrsten Sinema, who, along with their 50 Republican colleagues in the Senate, have stood in the way of Biden’s repeal of the tax cuts.