After Plundering Americans’ Paychecks With The Worst Inflation In 40 Years, Democrats Should Not Do It Again With Tax Hikes

Inflation In June Increased 9.1% Year-On-Year, Which ‘Catapulted U.S. Inflation To A New Four-Decade Peak’ And ‘Seemed To Counter The Narrative That Inflation May Be Peaking’

(U.S. Senate Finance Committee Ranking Member, Press Release, 7/13/2022)

“Surging prices for gas, food and rent catapulted U.S. inflation to a new four-decade peak in June, further pressuring households and likely sealing the case for another large interest rate hike by the Federal Reserve, with higher borrowing costs to follow. Consumer prices soared 9.1% compared with a year earlier, the government said Wednesday, the biggest yearly increase since 1981, and up from an 8.6% jump in May. On a monthly basis, prices rose 1.3% from May to June, another substantial increase, after prices had jumped 1% from April to May.” (“US Inflation Reached A New 40-Year High In June Of 9.1%,” The Associated Press, 7/13/2022)

• “The June increase was heavily influenced by higher food and gas prices. Food prices increased 1% from May and 10.4% over the previous 12 months, while gasoline prices increased 11.2% from May and 60% over the past 12 months…. [T]he gains were broad-based, with everything from rent to motor vehicle costs increasing at the fastest rate in decades. The cost of dental services, the BLS noted, surged 1.9% month on month — its largest-ever increase.” (“U.S. Inflation Rises 9.1% In June, A Worse-Than-Expected Increase As Prices Continue To Climb,” NBC News, 7/13/2022)

• “[T]he breadth of the price gains shows how rising costs have seeped into nearly every corner of the economy. Grocery prices have jumped 12.2% compared with a year ago, the steepest such climb since 1979. Rents have risen 5.8%, the most since 1986. New car prices have increased 11.4% from a year earlier. And airline fares, one of the few items to post a price decline in June, are nevertheless up 34% from a year earlier.” (“US Inflation Reached A New 40-Year High In June Of 9.1%,” The Associated Press, 7/13/2022)

“US inflation accelerated in June by more than forecast, underscoring relentless price pressures that will keep the Federal Reserve on track for another big interest-rate hike later this month. The consumer price index rose 9.1% from a year earlier in a broad-based advance, the largest gain since the end of 1981, Labor Department data showed Wednesday. The widely followed inflation gauge increased 1.3% from a month earlier, the most since 2005, reflecting higher gasoline, shelter and food costs. …The so-called core CPI, which strips out the more volatile food and energy components, advanced 0.7% from the prior month and 5.9% from a year ago, above forecasts.” (“US Inflation Quickens to 9.1%, Amping Up Fed Pressure to Go Big,” Bloomberg, 7/13/2022)

“Excluding volatile food and energy prices, so-called core CPI increased 5.9%, compared to the 5.7% estimate. On a monthly basis, headline CPI rose 1.3% and core CPI was up 0.7%, compared to respective estimates of 1.1% and 0.5%. Taken together, the numbers seemed to counter the narrative that inflation may be peaking, as the gains were based across a variety of categories.” (“Inflation Rose 9.1% In June, Even More Than Expected, As Price Pressures Intensify,” CNBC, 7/13/2022)

• “Inflation is showing few signs of letting up, compounding the pressure on the Federal Reserve and White House to ratchet up their response …” (“June Inflation Soared 9.1 Percent Amid High Gas Prices,” The Washington Post, 7/13/2022)

‘The Ongoing Price Increases Underscore The Brutal Impact That Inflation Has Inflicted On Many Families’

“The ongoing price increases underscore the brutal impact that inflation has inflicted on many families, with the costs of necessities, in particular, rising much faster than average incomes. Lower-income and Black and Hispanic Americans have been hit especially hard, because a disproportionate share of their income goes toward such essentials as housing, transportation and food.” (“US Inflation Reached A New 40-Year High In June Of 9.1%,” The Associated Press, 7/13/2022)

• “Housing costs have also risen sharply. A shortage of houses for sale has kept prices high just as mortgage rates have also soared. With many people priced out of the market for houses and looking instead to rent, demand for apartments has sent rental rates beyond affordable levels. The average cost of new leases has jumped 14% in the past year, according to real estate brokerage Redfin, to an average of $2,016 a month.” (“US Inflation Reached A New 40-Year High In June Of 9.1%,” The Associated Press, 7/13/2022)

“When 46-year-old Elizabeth Ray saw the high costs on her heating bill over the winter, she said she hit a tipping point. The Philadelphia resident realized she needed to start dialing back on spending. Clothing was one of the first categories on the chopping block, she said. She plans to wear gym clothes, which she stocked up on after Covid-19 hit, until they disintegrate. Ms. Ray is also curtailing her restaurant visits, a sharp shift from earlier in the pandemic. ‘I was going out by myself several times a week, buying food, ordering drinks, living large, tipping the waitstaff,’ she said. ‘Now I’m kind of like, “Guys, you’re on your own. I can no longer help. I need to hide under my bed and save every dollar I can.”’” (“Americans Have Had It With Inflation,” The Wall Street Journal, 7/03/2022)

“For 70-year-old Eileen Pollock, skyrocketing gas prices mean that visits to the library—about 5 miles round trip—no longer feel free. Miss Pollock, who is retired and lives in Pikesville, Md., typically only goes to the library once or twice a week now…. She has also pulled back on entertainment spending in recent months. For instance, she considered taking her grandniece to see the ‘Wizard of Oz’ at the symphony, but decided the event would be too expensive, given ticket and parking prices.” (“Americans Have Had It With Inflation,” The Wall Street Journal, 7/03/2022)

“Joëlle Harris, 48, of Eugene, Ore., doesn’t buy beef anymore. She and her husband used to have the occasional steak, but now, they stretch meat—like a pork loin—across multiple dishes. ‘We kind of try to eat what we have while we have it,’ Ms. Harris said. Ms. Ray used to enjoy having a scented candle warm her home office and diffuse a light fragrance, such as ocean breeze. She hasn’t purchased one in months. ‘I don’t see the light for the inflation tunnel,’ Ms. Ray said. ‘It seems like more darkness.’” (“Americans Have Had It With Inflation,” The Wall Street Journal, 7/03/2022)

FLASHBACK: Last December, President Biden Said We Were At The ‘Peak Of The [Inflation] Crisis’ But Inflation Surged Ahead At 7% Or More Every Month Since

PRESIDENT JOE BIDEN: “It’s the peak of the crisis, and I think you’ll see it change sooner than — quicker than — more rapidly than it will take than most people think. Every other aspect of the economy is racing ahead. It’s doing incredibly well.  We’ve never had this kind of growth in 60 years. But inflation is affecting people’s lives. … I think you’re going to see — you’ve already begun to see, and you’re going to see over the next couple months the oil prices, gas prices — prices of gas pump come down.” (President Biden, “Remarks by President Biden at the Summit for Democracy Closing Session,” 12/10/2021)

June marked the FOURTEENTH consecutive month in which inflation rose at least 5 percent. (Bureau of Labor Statistics, Accessed 7/13/2022)

• June also marked the SEVENTH consecutive month in which inflation rose at least 7 percent. (Bureau of Labor Statistics, Accessed 7/13/2022)

Over The Past Year, Prices For Goods And Services Essential To Everyday Life Have Skyrocketed, With Grocery Prices Increasing The Most Since The 1970s

The price of all items increased 9.1% year-on-year. (Bureau of Labor Statistics, Accessed 7/13/2022)

Food prices increased 10.4% year-on-year, the largest increase since 1981. (Bureau of Labor Statistics, Accessed 7/13/2022)

Grocery (food at home) prices increased 12.2% year-on-year, the largest increase since 1979. (Bureau of Labor Statistics, Accessed 7/13/2022)

Prices for dining out (food away from home) increased 7.7% year-on-year, the largest increase since 1981. (Bureau of Labor Statistics, Accessed 7/13/2022)

Electricity prices increased 13.7% year-on-year, the largest increase since 2006. (Bureau of Labor Statistics, Accessed 7/13/2022)

Gasoline prices have increased 59.9% year-on-year, the largest since 1980. (Bureau of Labor Statistics, Accessed 7/13/2022)

Prices for housing increased 7.3% year-on-year, the largest increase since 1982. (Bureau of Labor Statistics, Accessed 7/13/2022)

Rental prices for a primary residence increased 5.8% year-on-year, the largest increase since 1986. (Bureau of Labor Statistics, Accessed 7/13/2022)

Prices for services overall increased 6.2% year-on-year, the largest increase 1991. (Bureau of Labor Statistics, Accessed 7/13/2022)

Compounding The Problem, Americans Are Now Losing Even More Of Their Paychecks To Inflation, With Year-On-Year Real Average Weekly Earnings Decreasing 4.4%

“Real average hourly earnings decreased 3.6 percent, seasonally adjusted, from June 2021 to June 2022. The change in real average hourly earnings combined with a decrease of 0.9 percent in the average workweek resulted in a 4.4-percent decrease in real average weekly earnings over this period.” (Bureau of Labor Statistics, Press Release, Accessed 6/10/2022)

SEN. JOE MANCHIN (D-WV): ‘Inflation, Inflation, Inflation. Gas Prices, Gas Prices, Gas Prices. Food Prices, Food Prices, Food Prices. And Energy’

SEN. JOE MANCHIN (D-WV): “I’ve told you all how many times? Inflation, inflation, inflation. Gas prices, gas prices, gas prices. Food prices, food prices, food prices. And energy.” (Punchbowl News’ John Bresnahan, @bresreports, 7/12/2022)

Just As Americans Are Reeling From Inflation Eroding Their Paychecks, Democrats Are Proposing To Take Even More Out Of Americans’ Wallets With $1 Trillion In Tax Hikes

“Roughly speaking, Manchin and Schumer are working toward legislation that provides $1 trillion in new revenues, half of which would go toward deficit reduction and half of which would go toward energy and health spending. Such a deal is hypothetical at the moment: The tax and energy pieces remain in major flux.” (“Dems’ Climate And Tax Agenda To Consume Congress In July,” Politico, 7/7/2022)

• “Senate Democrats also have a deal to raise taxes on ‘pass through’ income for small business owners who make more than $400,000 annually ($500,000 for couples), with the revenue generated by this tax going to boost Medicare’s solvency.” (Punchbowl AM, 7/11/2022)

• “Democrats are looking at $500 billion in spending and $1 trillion in revenue, two sources with knowledge of the negotiations said, with the goal of putting half the savings toward deficit reduction, a top Manchin priority.” (“Senate Hits The Gas On Biden Agenda Bill As House Democrats Plan Abortion Votes,” NBC News, 7/11/2022)