A report published this week revealed that inflation under President Joe Biden is costing American families an average of $5,000 per year.
The report by the Washington Examiner noted West Virginia Democratic Sen. Joe Manchin is correct to speak out over his concerns regarding inflation that is impacting the nation’s households worse than any time in the past 40 years. The report based the $5,000 inflation “tax” on two recent studies.
“A new analysis by the Penn Wharton Budget Model found inflation costs the average U.S. household $3,500 in higher prices. The analysis showed that ‘inflation requires the average U.S. household to spend around $3,500 more to achieve the same level of consumption of goods and services as in previous years,’” Bruce Thompson noted in the report. Lower-income households are impacted more.
The second part of the inflation “tax” was based on inflation pushing taxpayers into higher tax brackets, resulting in higher taxes. A recent Congressional Budget Office report showed that just “a 1 percent increase in inflation would increase individual income taxes by 1.1 percent.” The two factors combine for tremendous additional stress on American family finances.
“At today’s 6.8% inflation rate, this translates into a 7.5% tax increase, a $1,500 tax increase for a household earning the median family income. With $3,500 in lost purchasing power and $1,500 in higher taxes, this painful Biden inflation tax is costing the typical family $5,000 a year,” Thompson noted.
When Biden says families making $400,000 or less per year won’t see their taxes go up, he’s not telling the entire story. Inflation is a tax on every American, forcing the same family budget to hold less buying power.
It was a story repeated daily during the first year of the Biden administration. Supplies are low, costs are up, workers are few and shelves are empty. What’s the Democrat plan to respond? Spending more money. In some cases, it’s also to do something about climate change or simply blame Trump.
But the excuses stop working at the ballot box. The 2022 midterms are now only 10 months away and Americans are ready to make change and their starting with their vote. Democrats can expect to fall as casualties in the House and Senate, as well as in many state and local elections over Biden’s dismal first year.
Until then, there’s not a lot Americans can do about inflation on a personal level. The biggest thing is to recognize it and adjust as possible to the changing economic reality around us.
It’s not fun to pay more attention to prices and purchasing, but the left has taken the fun out of American life. If it’s not the budget, it’s cancel culture out to take down the latest person who made a comment that someone didn’t like.
And this is all in addition to Biden’s COVID-19 restrictions that continue to mess up the economy, jobs, and daily life with testing and masking and restrictions. Biden didn’t “defeat the virus” and he’s not doing much else to help, either. It’s time to stop inflation where it started, by voting out the spend-happy party behind it.