Higher Wages, Less Buying Power

Press Release

According to a new Bloomberg Economics analysis, the average American family will spend an additional $5,200 this year because of our record-high inflation rate. Polling data show that a majority of Americans are seriously concerned about inflation, a sign Americans already burdened with higher costs at the grocery store and gas pump are bracing for additional financial pressures. As our nation struggles to overcome the economic damage caused by COVID-19 shutdowns, the unnecessary stimulus bill President Biden signed last year and continued efforts by congressional Democrats to continue the spending spree have deepened our economic troubles.

The latest jobs report from the Bureau of Labor Statistics shows an increase in job numbers; however, at 62.4 percent, the workforce participation rate remains a full percentage point below its level prior to March 2020 shutdowns, meaning millions of Americans have not returned to the workforce. In an economy with 11 million job openings, where available positions outnumber job seekers, businesses are raising wages to meet hiring needs. According to the National Federation of Independent Business, 49 percent of small business owners reported raising wages in March. Unfortunately, inflation continues at 7.9 percent, outpacing 5.6 percent wage growth.

Unfortunately, instead of focusing on the solutions Americans need, we're seeing more of the same broken tax-and-spend agenda from the Biden administration. This week President Biden submitted his Fiscal Year 2023 budget proposal to Congress. The latest budget blueprint calls for more reckless spending and doubles down on the administration's job-crushing taxing spree. The budget would spend $73 trillion over the next ten years, skyrocketing our national debt to $45 trillion by 2032. It also proposes 36 new tax increases which would raise $2.5 trillion, increasing the overall burden of federal taxes to $58 trillion over ten years. According to the Tax Foundation, the proposed corporate tax hike alone -- from 21 to 28 percent -- would eliminate 145,000 jobs.

I was also incredibly disappointed the administration proposed, once again, to repeal stepped-up basis from the tax code and require capital gains tax payments at death. Last year I led a letter with over 130 of my colleagues opposing these changes because of the devastating impact they would have on Nebraska's small businesses, family farms and ranches. Gains on assets have and should always be assessed when the asset is sold, and the death of a loved one should not cause unnecessary, sometimes insurmountable, economic harm because the president is looking for shortcuts to pay for his reckless spending spree. Rest assured I will continue to oppose these harmful proposed changes to our tax code.

The budget also proposed eliminating the Hyde amendment -- repealing the longstanding moratorium on taxpayer-funded abortions -- and paves the way for a 40 percent increase in Title X funding, which gives roughly $400 million to Planned Parenthood and other abortion providers each year. This is the second year in a row President Biden has proposed these anti-life provisions in his budget. One thing is clear: this budget does not reflect pro-life values.

As a member of the Jobs and Economy Taskforce and a senior member of the House Ways and Means Committee, I am committed to real solutions that will provide relief to the American people. We must rein in spending, get Americans back to work, fix our supply chains, grow our economy, and allow Americans to keep more of their hard-earned dollars. These are the principles that will get our country back on track, and they are principles I will keep fighting for.

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