Inflation, the regressive tax
The idea that Biden’s policies help ordinary people by digging deeper into the pockets of the wealthy is not true.
The tirelessly and tiresomely repeated claim that the president’s plan would increase taxes only on people earning more than $400,000 is false. It is already dipping deeper into the pockets of everyone in this country, right down to those living below the poverty line.
By handing out unnecessary federal checks, to stimulate the economy, and by pressing for the biggest increase in further spending in history, Biden is stoking inflation. Because of him, more and more dollars are chasing goods that are in shortening supply in part because there are a record 10 million job vacancies nationwide.
Inflation is a regressive tax and one that falls disproportionately on the poor. Inflation takes buying power out of our pocket to pay for federal spending. What’s the difference? Only that that former is official and the latter stealthy. But both intentionally do the same thing.
Inflation is the most regressive tax of all. The “wealthy” — those well off enough to benefit from SALT, for example — spend a smaller proportion of their incomes on food and energy than the poor do. They have capital investments, such as in homes, the prices of which are rocket-boosted by inflation as the value of a dollar collapses. Inflation is the borrower’s friend because it reduces the value of debt, whether that be the debt piled up in Treasury paper by Biden & Co. or the mortgage debt of the upper-middle and wealthiest classes.
Inflation doesn’t benefit people who live hand to mouth or those who don’t have investments. Little guys do not own their own homes, or second homes, and spend far more of their income on goods and services needed for day-to-day living. So inflation hits them hardest. A government that lets inflation rip, as Biden’s administration has, is not on the side of the poor. It is taxing us even though it keeps insisting it isn’t.
In the past few months, like many others, I have personally been significantly impacted by rampant escalating grocery price increases, material and restaurant pricing increases and short staffing. Dollar General closure at 5 pm on a Saturday because of short staffing, incredible. Stockpiling and empty shelves once again, scary stuff.