Sen. Rand Paul issued a report called, The Hidden Tax – Inflation’s Effect on American Families and Small Businesses, where he outlined the damaging effects that inflation is having on the American people, particularly small businesses.
In Fox News analysis of the report pointed to the impact that historic inflation is having on low and middle-income families, according to the top Republican on the Senate Committee on Small Business and Entrepreneurship.
Paul blames the 7% spike in consumer prices, which is a 40-year high, on excessive spending in Congress for coronavirus relief and warns that it’s “only going to get worse.
“In recent months, prices on nearly everything from gas, food, and clothes to electricity, car prices, and rent, have all increased, and unfortunately it’s only going to get worse,” Paul said in a statement released first to Fox News Digital.
“Congress needs to realize that further spending at this time of rapidly rising prices is only going to continue the trend of rising prices on this nation’s already vulnerable businesses and families.”
Of particular concern to the Kentucky Republican is the massive spending package that COngress signed off on for various issues surrounding COVID-19, particularly where the spending was largely unregulated or covered for other pet projects.
“$4.9 trillion in COVID-19 stimulus spending has led to one of the highest and sustained levels of inflation in U.S. history,” Paul said in a statement.
“Though government stimulus spending was intended as a form of relief, and low and middle-income families as well as small business owners were promised that their taxes would not increase as a result of these packages, Americans are now paying a ‘hidden tax’ for these policies.”
“While Congress was able to unite in 2020 in spending $4.9 trillion, unity does not always lead to virtuous outcomes, and this particular example of unity left Americans with the most difficult economic conditions in recent history,” Paul wrote in his report. “This crisis is one of our own making.”
Paul’s report included extensive data from The Bureau of Labor Statistics (BLS), the Consumer Price Index (CPI), the Producer Price Index (PPI), The Federal Reserve Bank as well as other government statistics.
“Though government stimulus spending was intended as a form of relief, and low and middle-income families as well as small business owners were promised that their taxes would not increase as a result of these packages, Americans are now paying a ‘hidden tax’ for these policies.
“This price of these measures is high to all, but low and middle-income households and small business owners are responsible for a higher share than their wealthy counterparts. Further spending in this time of rapidly rising prices is to impose an even higher tax on this nation’s already vulnerable small business owners and low and middle-income families. In the words of Milton Freidman, there is no such thing as a free lunch.”