Democrats Push Job-Killing Tax Hikes Just As The Country Falls Into A Recession

The United States Economy Shrank For The Second Quarter In A Row, Meaning The Country Is Now In A Recession

“The U.S. economy shrank for a second quarter in a row—a common definition of recession—as businesses trimmed their inventories, the housing market buckled under rising interest rates, and high inflation took steam out of consumer spending. Gross domestic product, a broad measure of the goods and services produced across the economy, fell at an inflation and seasonally adjusted annual rate of 0.9% in the second quarter, the Commerce Department said Thursday. That marked a deterioration from the 1.6% rate of contraction recorded in the first three months of 2022. The report indicated the economy met a commonly used definition of recession—two straight quarters of declining economic output.” (“U.S. GDP Fell at 0.9% Annual Rate in Second Quarter,” The Wall Street Journal, 7/28/2022)

• “Thursday’s first of three government estimates of GDP for the April-June quarter marks a drastic weakening from the 5.7% growth the economy achieved last year. That was the fastest calendar-year expansion since 1984, reflecting how vigorously the economy roared back from the brief but brutal pandemic recession of 2020. But since then, the combination of mounting prices and higher borrowing costs have taken a toll. The Labor Department’s consumer price index skyrocketed 9.1% in June from a year earlier, a pace not matched since 1981. And despite widespread pay raises, prices are surging faster than wages. In June, average hourly earnings, after adjusting for inflation, slid 3.6% from a year earlier, the 15th straight year-over-year drop. The inflation surge and fear of a recession have eroded consumer confidence and stirred public anxiety about the economy … Americans are losing confidence: Their assessment of economic conditions six months from now has reached its lowest point since 2013, according to the Conference Board, a research group.” (“US Economy Shrank 0.9% Last Quarter, Its 2nd Straight Drop,” The Associated Press, 7/28/2022)

Nearly Two-Thirds Of Americans, Including 56% Of Democrats, Think ‘The Economy Is Currently In A Recession’

“As some economists warn of a looming recession, most Americans think the country is already there. The poll finds 64% of Americans feel the economy is currently in a recession, higher than the shares who said so just ahead of the Great Recession (46% felt that way in October 2007) and a recession that began in 2001 (44% said the country was already in a recession in February ‘01). Majorities across parties say the country is already in a recession, including 56% of Democrats, 63% of independents and 76% of Republicans.” (“CNN Poll: Most Americans Are Discontented With Biden, The Economy And The State Of The Country,” CNN, 7/18/2022)

In Stark Contrast, After The First Quarter Of Negative GDP Growth, President Biden Claimed He’s ‘Not Concerned About A Recession’

QUESTION: “Sir, how concerned are you about a recession, given the GDP report today showed a contraction of 1.4 percent in the first quarter?”
PRESIDENT BIDEN: “Well, I’m not concerned about a recession. I mean, you’re always concerned about a recession, but the GDP, you know, fell to 1.4 percent.” (President Biden, Remarks, 4/28/2022)

Just As Official Data Are Confirming Americans’ Economic Struggles, Senate Democrats Are Rushing In To Raise Taxes

“The biggest revenue-raiser in the bill is a new 15% minimum tax on corporations that earn more than $1 billion in annual profits…. The new corporate minimum tax would kick in after the 2022 tax year and raise some $313 billion over the decade.” (The Associated Press, 7/28/2022)

In December, The Tax Foundation Called This Tax Hike ‘The Most Economically Damaging Provision’ Of Democrats’ Reckless Taxing And Spending Plan, Since It Is Expected To Cost Tens Of Thousands Of Jobs

THE TAX FOUNDATION: “The proposed 15 percent minimum tax on corporate book income is the most economically damaging provision in the bill, reducing GDP by 0.1 percent and costing about 27,000 jobs.” (“House Build Back Better Act: Details & Analysis of Tax Provisions in the Budget Reconciliation Bill,” Tax Foundation, 12/02/2021)

The Very Same Senate Democrats Who Have Proposed These Damaging New Tax Increases Once Admonished Policymakers Should Not Raise Taxes During A Recession

THEN-GOV. JOE MANCHIN (D-WV): “I don’t think during a time of recession you mess with any of the taxes, or increase any taxes.” (West Virginia Senate Debate, 10/18/2010)

SEN. CHUCK SCHUMER (D-NY): “If we’re in a recession and we’re in a difficult economic time, I don’t think Sen. Obama or anyone else is going to raise any taxes. You don’t want to take money out of the economy when the economy is shrinking.” (CNBC’s “Fast Money,” 10/27/2008)

FLASHBACK: Multiple Biden Administration Economists Previously Said A Recession ‘Is Typically Defined As Two Consecutive Quarters Of Declining Growth’

BRIAN DEESE, Director of the National Economic Council: “Of course, economists have a technical definition of recession, which is two consecutive periods [of slowdown]… It certainly appears that there are some regions or parts of the country that are in a recessionary environment.’” (“Obama, Clinton: 'Recession' or 'pain people feeling'”, The Chicago Tribune, 3/27/2008)

CECILIA ROUSE, Chair Of White House Council Of Economic Advisers: “Typically, economists date a recession as being at least two quarters of negative growth...” (CNN’s “New Day,” 5/10/2022)

JARED BERNSTEIN, Member of the Council of Economic Advisers: “One percent growth isn’t a recession, which is typically defined as two consecutive quarters of declining growth.” (“The Self-Inflicted Recession”, Foreign Affairs, 9/10/2019)

HEATHER BOUSHEY, Member of the Council of Economic Advisers: “One could also use the rule of thumb that the economy is in a recession after two quarters of negative growth in GDP.” (“The Damage Done by Recessions and How to Respond”, Brookings Institute, Accessed 7/27/2022)

Reminder: The National Bureau Of Economic Research Does Not Declare The Real-Time Start Of A Recession But ‘Waits Until A Recession Is Well Under Way Before Declaring It Has Started’

JAMES POTERBA, the NBER President and a member of the Business Cycle Dating Committee: “By far, the most important thing to try to convey is that the committee is not trying to do real-time dating of whether we’re in a recession… There’s often enormous amount of interest in that question and what many people are hoping for, but the committee’s task is to create a consistent historical record of the turning points — the peaks and the troughs in the U.S. economy.” (“The 8 Economists Who Decide If The U.S. Is In A Recession,” The Washington Post, 7/27/2022)

• “…the [National Bureau of Economic Research] typically waits until a recession is well under way before declaring it has started.” (“Recession in U.S. Began in February, Official Arbiter Says,” The Wall Street Journal, 6/08/2020)