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Senator Chuck Schumer Thinks Higher Taxes Will Solve Inflation

Senator Chuck Schumer Thinks Higher Taxes Will Solve Inflation

“If you want to get rid of inflation, the only way to do it is to undo a lot of the Trump tax cuts and raise rates.”

https://twitter.com/mmcauliff/status/1207043466053730304

Senate Majority Leader Chuck Schumer (D-NY) has never met a tax increase he didn’t like, and now he is saying that tax increases are the solution to rising inflation.

So the answer to the pain American consumers feel at the gas pump and the grocery store is… more pain.

Somehow, I think there are better ways to deal with the inflation problem.

Guy Benson writes at Townhall:

Schumer: Let’s Face It, The Only Way to Solve Inflation is to…Raise Taxes

Question: Is the Democratic Senate Majority Leader trying to tank his party ahead of November? Inflation is raging, Americans’ purchasing power is painfully diminished, and Chuck Schumer thinks the ‘only’ way to right the ship is to, um, confiscate more earnings from Americans and American businesses? Higher taxes and increased spending are his party’s predictably knee-jerk solutions to nearly every problem, even when those policies are glaringly and cartoonishly wrong for the moment.

Chris Enloe of The Blaze has the transcript of Schumer’s remarks:

During a press conference, a reporter asked Schumer whether Democrats plan to use the budget reconciliation process to pass legislation (without Republican support) to address the ongoing economic crisis.

“Reconciliation is very, very important,” Schumer responded. “If you want to get rid of inflation, the only way to do it is to undo a lot of the Trump tax cuts and raise rates.

“No Republican is ever going to do that. So the only way to get rid of inflation is through reconciliation,” he added.

Earlier in the day, Schumer met with Sen. Joe Manchin (D-W.Va.) to discuss combatting inflation, which has remained at record levels for months. After the meeting, Manchin signaled support for using reconciliation to pass legislation aimed at tamping down the economic problems.

See the video below:

People have thoughts about this.

Professor Glenn Reynolds of Instapundit offers a wake up call on inflation.

He writes in the New York Post:

There are two ways to address inflation: Remove some of the money from the system, which the Federal Reserve did in the past via higher interest rates, and increase the supply of goods. At this point in 1980, when inflation soared, the federal funds rate was nearly 20%. Presently, it’s 0.33%.

In the Carter era, we saw not only runaway inflation but stagflation. People normally associate inflation with an overheated economy, but the sluggish Carter economy was not even close to running hot. We had economic stagnation and inflation, which led to the coinage of the term “stagflation.”

Now we’re seeing the same thing. And I suspect the reason is the same.

This will probably be an issue for as long as Democrats remain in power.

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Comments

This kleptocrat and inside trader has installed his family out to cousins in every major media oriented tech firm in America. He is a snake.

Stop subsidizing companies that should be allowed to go out of business. Including banks, universities, newspapers, Hollywood, wind farms, solar fields, and the rest. If you can’t sell your product at a profit, die. Universities should be forced to defend their tuition considering how many graduates get degrees that are useless and we end up with unemployed buried in debt right out of the gate. How is that for a start?

    Universities defending their tuition could readily be accomplished by putting them on the hook for 25-50% of any student loan default. That would be a wake-up call for admitting students with no chance and offering “basket-weaving” majors.

      UnCivilServant in reply to jb4. | April 29, 2022 at 2:38 pm

      Not so little. Make the Universities cosignatories on all student loans. If the student defaults or can’t afford it, they have to cover the debt remainder.

    Ironclaw in reply to Pasadena Phil. | April 30, 2022 at 12:06 am

    Universities should be funding student loans out of their endowments. Then we’d find out which majors are worth pursuing in fairly short order.

Higher Taxes will solve everything.*

*Quoted with permission: Politicians Handbook, p 69

“Look at that blazing fire. The only way to put it out is throw gasoline on it” ranks right up there with “The patient is almost dead. We need to bleed him again.”

    henrybowman in reply to georgfelis. | April 29, 2022 at 3:58 pm

    “Schumer: Let’s Face It, The Only Way to Solve Inflation is to…Raise Taxes”
    This is Democrat business as usual.
    “My ‘current thing’ is the answer! What’s the question?”
    We see it all the time.
    “Some kid killed his mother, stole her rifle, and shot up a school?
    We need universal background checks!
    Right. Kid’s gonna “Weekend At Bernie’s” his dead ma to the local gun shop to get the FBI’s approval to steal her rifle. I know most, if not all, Democrats would.

More and more, Schumer is like a caricature of an actual human being.

According to his logic the only way to solve inflation is to shoot yourself in the foot right before midterms. Sounds like a losing plan to me.

“More taxes will solve everything…..and the band played on”.
Boomers, this one is yours to know.

Chuck Schumer needs a foot up his ass to solve his stupidity.

madisonian_123 | April 29, 2022 at 2:43 pm

Well, killing the economy is one way to do that. Jacking up taxes is just one way Dems can do that.

He’s not wrong. Here me out. There are several caveats necessary for it to work.

First, taking tax dollars from people keeps that money out of the economy thus slowing down demand in the same way that the Fed charging higher interest rates works.

Second, the taxes have to be raised on EVERYONE. You can’t have the middle class spending like crazy still. Interest rates impact everyone in the economy. The Dems talk about only taxing the rich. There really aren’t as many rich people as the Dems like to think, so a tax on only 5% of the economy won’t do anything for inflation.

Third, Schumer is in luck. Trump’s tax cuts went to the lower 80% of the economy so canceling them will have the necessary impact if……

Fourth, Schumer will have to adjust everyone’s income tax withholding and estimate payments immediately so that people no longer have that money to spend on inflationary items.

And last but not least, Schumer CANNOT SPEND ANY OF THOSE TAX DOLLARS! If the government takes the money from the consumers and then spends that money, the government becomes a replacement consumer and it will have ZERO effect on inflation. As a matter of fact, this is exactly what has created this inflationary cycle in the first place.

Bottom line – It’ll never work.

    henrybowman in reply to DanJ1. | April 29, 2022 at 4:02 pm

    Kudos for acknowledging the last line item. You simply cannot throw extra money at a Democratic administration that they will not immediately turn around and spend 120% of.
    When I grew up. windfalls went in the savings account.
    Today, windfalls go in the Apple Store.
    Yeah, are your ears burning, Patrice Cullors?

E Howard Hunt | April 29, 2022 at 3:45 pm

Every schoolboy knows that the more you tax something the less of it there will be. So, all we need to do is to tax inflation and there will be less of it. We could also try retroactive and prospective deflation tax rebates. Kamala checked it all out with the seedy hole budge it orifice.

“Drinking more alcohol will cure my alcoholism!,” said the alcoholic.

Hold on, he has a point. Inflation is caused by too many dollars chasing after too few goods. One way to solve this would be to tax the entire nation into dire poverty. Chuck has opted for this strategy.

drednicolson | April 29, 2022 at 5:08 pm

Or they could, you know, tell the mints to dial back printing money to no more than is necessary to replace those notes damaged in circulation.

But that would make too much sense.

Inflation is a stealth tax. So Chuck basically wants to charge a tax on paying tax.

If only there was a time tested formula or lesson from history about setting and maintaining a standard that was effective in curbing the ability of a central bank to simply print currency without limit and thereby causing inflation.
/S

I think Schumer is correct, raising taxes will reduce inflation. It will elect Republicans who would hopefully bring sanity back to the federal government by ending deficit spending with massive cuts in the federal government. Kill the Education department for a start.

    JimWoo in reply to ConradCA. | May 1, 2022 at 10:04 am

    Killing off the Dept of Education is a great start. Moving some of the other agencies to places like Waterloo IA would also result in hopefully mass resignations and whining. Why should all these highly paid govt jobs be clustered in one area? Time to spread the wealth. And I don’t mean to disrespect Waterloo IA.

These people don’t understand economics

No, they very much do. Schumer is malicious not ignorant.

There are plenty of stealth tax increases already in the IRC, due to a lack of inflation indexing: SS benefits tax, the primary residence capital gain exclusion, the net investment income surtax, and so on.

Oh, yes, of course. You crooks don’t already steal too much from us already, right?