The Republican National Committee

Republican National Committee Logo
May 10, 2021 | Rapid Response | RNC Communications
Economy

The hidden Biden middle class tax hike

Rapid Response

Joe Biden claimed he would not raise taxes on the middle class, but on his watch many families are already facing a new hidden tax: rising prices.

Even former Obama economic adviser and Clinton Treasury Secretary Larry Summers is warning that Biden’s partisan $1.9 trillion stimulus bill could send rising prices into hyperdrive: “We were providing demand well in excess over the next couple of years of any plausible estimate of the economy’s potential to produce, and that meant substantial price increases… All the signs are for inflation starting to break out.”

According to Summers, the alarms are already starting to go off: “The data flow has tended to bear out inflation fears. Relative to a couple of months ago, there is much clearer evidence of labor shortage, there are more and more pervasive supply bottlenecks, commodities and future commodities prices are rising…Housing is on fire, and market inflation expectations are trending upwards. None of these are inherently transitory factors, so to my mind, grounds for concern are increasing.”

Here are just a few ways rising prices under Biden are already hitting Americans’ pocket books:

  • Prices for a range of goods, including toilet paper, diapers, soft drinks, and plane tickets have increased.
  • Whirlpool is raising prices of some of its appliances by up to 12 percent.
  • Food prices are increasing by up to 10 percent.
  • Gas prices have surged, and experts predict they are going to keep going up.
  • Manufacturers and builders are facing skyrocketing prices for raw materials.

And as Biden’s new proposals are likely set to increase prices even more, Americans are already feeling the pinch:

  • Kaitlyn Vinson, Denver, Colorado: “We’re sacrificing the food that I really like to cook just to be cheaper.”
  • H. Kenneth Fleetwood, Nashville, Tennessee: “Penny-pinching is becoming the name of the game.”
  • Devon Dalton, Charlotte, North Carolina: “Everything is getting a bit tighter…We’re trying to think what would be a good way to stay smart with our money.”

Rising prices come on top of the historically disappointing April jobs report, which showed a higher unemployment rate and roughly 750,000 fewer jobs than expected. Meanwhile, Biden’s policies are forcing many businesses to shut down or reduce hours as consumers see “higher prices, limited hours, and fewer services.”

 Biden’s policies are squandering the recovery he inherited while prices of everyday goods are increasing all around the country.  Make no mistake, these rising prices are a hidden tax on lower income and middle class Americans.