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Senator Rand Paul, a staunch conservative from Kentucky, recently released ‘Hidden Taxes’, a much-needed report that a press statement describes as display “The effect of inflation on American homes and small businesses. ”
Describing the Report and Dangerous Impact of Inflation, Senator Paul speak:
“$4.9 trillion in COVID-19 stimulus spending has resulted in one of the highest and most sustained inflation levels in US history. While government stimulus spending was intended as a form of relief, and low- and middle-income families and small business owners were promised that their taxes would not increase, Americans everywhere are now paying a hidden tax called inflation.
“In recent months, the prices of almost everything from gasoline to food and clothing to electricity to car prices and rent have increased, and Unfortunately, it will only get worse. Congress needs to recognize that spending more at a time of rapidly rising prices will only continue an upward trend in prices for the nation’s already vulnerable businesses and families.”
Report, can be read thiscame to some scary conclusions about the effects of inflation.
For example, reporting on the impact inflation could have on middle- and low-income families, the report says:
Low- and middle-income families spend a large portion of their income on items with high inflation, such as gasoline, used cars, and food. Families in the lowest income quintile spend nearly 40% of their annual income on these three categories. By comparison, families in the top quartile spend only 10 percent of their annual income on these categories.
Plus, after showing how inflation has a much more pernicious impact on small businesses than big business, the report says:
This report concludes that, although no formal tax has been levied to pay for recent government spending trends, a hidden, regressive tax has been levied on the American public, collecting large sums of money. more from low- and middle-income families and small businesses and less from the affluent. families and large businesses.
Describing the scale of the current inflation problem, the report notes that:
In addition to the soaring CPI, producer Price Index (PPI) final demand is expected to grow 9.7% in 2021. While CPI measures the average consumer’s cost of a basket of consumer goods and services. PPI measures the sales of goods and services made by U.S. manufacturers and sold to: private consumption, capital investments, government purchases, and exports. Producer prices rose 9.7 percent representing the biggest increase in history
years since measurement began in 2010 (see chart 4).
The report continues; It has 18 pages and that’s just a few short excerpts. But what can be seen, even from those excerpts, is that inflation is a big problem that is disproportionately affecting the middle and working classes.
Small businesses are struggling, now hit not only by Covid-induced closures but also by soaring inflation. Consumers are affected by massive price increases for staples, especially food and fuel.
That’s bad news for America, especially if Senator Paul is right and the situation will only get worse.
https://smartzune.com/rand-paul-has-frightening-inflation-warning/ Rand Paul Has Scary Inflation Warning