When Joe Biden and the Democrats announced they would seek to repeal the dramatic tax cuts enacted by former President Donald Trump and the then-Republican congressional majority, they said the new hikes would be directed at corporations and “the wealthiest Americans.”
Nothing new there, mind you: The Democrats have long been the ‘class warfare’ party, so proposals to levy punitive new taxes on the nation’s highest-earning Americans is par for the course. Nobody punishes success like Democrats.
But in reality, a raft of new taxes, though they may be directed at ‘the 1 percent,’ are going to wind up hurting the poorest Americans in the process, as they always do, according to former House Speaker Newt Gingrich.
That’s because of the so-called “hidden taxes” that everyone will pay.
Jump to about 8:45 in the below clip, compliments of Fox News:
“So every person who hears us today, when you go out to fill your gas tank and you notice that you’re getting less gasoline per dollar, that’s a Biden hidden tax,” Gingrich told Fox News’s Maria Bartiromo on Sunday.
Simply, Gingrich was referencing the well-known axiom that raising the cost of doing business (which taxes invariably do because businesses will have to charge more to make up for what they lose in excessive taxes) raises the cost on consumers because businesses pass along those costs.
“It will happen with electricity. It’s going to happen with food across the board. We are on the edge of a massive inflation and the Democrats’ answer is print even more money so they get a bad job’s number on Friday and they are saying immediately, ‘Oh, we need to spend another couple of trillion,’ which is exactly the wrong solution if you want the economy to be healthy,” Gingrich added.
The former House Speaker from Georgia also noted that the link between government spending and inflation is “a basic rule of economic history” that occurred during the Roman empire “and other ancient civilizations.” He also said that if citizens resist higher taxes, then governments react by deciding to “make up the difference is through inflation, through cheapening money by printing more dollars in our case by literally cheapening gold and silver coins.”
As such, “the result is everybody pays a hidden tax. Now what makes it tragic is the people hit the hardest are the poor.”
Over the past year, Congress has passed and presidents have signed legislation amounting to trillions in new spending, justifying the spree on ‘COVID relief.’ Call it what you want (or what it really was, a pay-off to constituent groups and ‘politically friendly’ states), but the inflation that Gingrich was talking about is already here.
Prices are already rising, as Fox News’s Tucker Carlson noted during a show last week:
Steel prices have tripled since last year. Chicken breast prices have doubled, just since Biden became president. The price of eggs has increased by almost five percent. Major appliances are up almost 15 percent. Ground beef and fresh fruits, both up almost six percent. The median sales price of existing homes has increased by 16 percent. And then there’s lumber. Have you noticed lumber? Since last year, the price of dimensional lumber has gone up by almost 300 percent. Want a thousand board feet? That’ll be $1,359. That price has never been higher. According to the National Association of Home Builders, the cost of materials adds more than $35,000 extra dollars to the price of a new single-family home.
ARTICLE SOURCE : TRENDINGPOLITICS.COM