CBO Report on Inflation Covers Up the Harmful Effect of Bidenomics on the Economy
WASHINGTON, D.C. – Today the Congressional Budget Office (CBO), released a report entitled, “An Update About How Inflation Has Affected Households at Different Income Levels Since 2019.” This was an update to a report from September 2022.
The updated report, requested by Senate Budget Committee Chairman Sheldon Whitehouse (D-RI), shows the cumulative inflation effects on households since 2019. This five-year cumulative look back, with no year-by-year breakdown, conflates the positive benefits of the Tax Cuts and Jobs Act (TCJA) with the destructive economic and fiscal policies of the Biden Administration.
Chairman Arrington's Statement on the CBO Report:
House Budget Committee Chairman Jodey Arrington released the following statement on the CBO report covering up Bidenomics’ effect on inflation:
“Unfortunately, the nonpartisan CBO has turned partisan for the purpose of bolstering President Biden six months before an election. CBO’s recent report on inflation intentionally skewed the results to be more favorable to Biden by including the low inflation, high wage growth, economic benefits of 2019 and the large stimulus of 2020. A more credible analysis of President Biden’s economic performance, which has led to a nearly 20% increase in cost of goods with punishing inflation, would have only included the years President Biden was actually in office. Any objective analysis, would’ve reflected the financial hardships facing everyday families and businesses.
Despite the blatant attempts to pad Biden’s economic numbers, whether it’s at the gas station or the grocery store, the American people know all too well the cost of Bidenomics.”
The American Fiscal Reality:
The fiscal reality under Bidenomics is grim. After nearly four years of inflation, Americans have been forced to endure the financial burden of:
- The cumulative rate of inflation for goods and services increasing by 18.9 percent.
- Inflation once again spiking to 3.5 percent in March 2024, the highest level of the past six months.
- Families having to spend nearly $17,000 per year to maintain the same standard of living they could afford before President Biden took office.
- Consumer Confidence for April falling for the third consecutive month in 2024, reaching its lowest level since July 2022.
- The unemployment rate for April 2024 rose to 3.9 percent, with 6.5 million Americans unemployed—an unwelcomed increase from the 3.8 percent unemployment rate in March 2024, that depicted 6.4 million Americans unemployed.
Background:
It’s no surprise that Democrats want to obfuscate President Biden’s harmful economy by tying it to the gains incurred due to TCJA.
TCJA was signed into law in December 2017. In 2018 and 2019, real GDP growth averaged 2.7 percent per year – compared to average growth of just 1.7 percent under the Obama Administration.
Tax revenues reached record levels. In 2017, prior to TCJA, tax revenues were $3.3 trillion. Revenues then rose to an all-time high of $4.9 trillion by 2022.
Fast forward to The Democrats’ American Rescue Plan and the so called “Inflation Reduction Act” in 2022, when they hiked taxes on businesses, changed the tax base, and handed out green tax credits with reckless abandon, tax revenues declined to $4.4 trillion in 2023.
This CBO report conflates years of low inflation and rising wages with Bidenflation, which began after the passage of the Democrats’ American Rescue Plan (ARP) in March of 2021.
