by Paige Terryberry
Senior Analyst for Fiscal Policy, John Locke Foundation
Coffers in Washington overflow with your tax dollars.
The latest data from the Congressional Budget Office show considerable increases in tax revenue collected in the first quarter of the fiscal year (October to December). Total receipts for the quarter are 31% above the same period the prior year. Individual income tax revenue dollars came in 55% higher than the previous year, while corporate income tax revenue is up 44%.
Though some of this is due to deferred payroll taxes in response to the pandemic, inflation has driven up total wages and salaries. Yet wages still are not keeping up with inflation. And low-income households must spend a higher share of their income than most to fight inflation.
President Biden would have you believe that we are experiencing a one-of-a-kind recovery. However, the GDP growth we see is propped up with cheap, printed money. Working families struggle to pay bills, yet Washington benefits from faux growth and cheaper debt.
Seven percent inflation is a bonus to Washington at your expense.
President Biden’s trivialization of inflation is disheartening. His demand for more revenue while taxpayer money pours into Washington at record levels is cruel and insensitive to the working-class families harmed most by inflation.