Newt Gingrich: Beware of Biden’s hidden tax increase

Every American is going to pay higher taxes because of the policies of the Biden administration.

Remember that inflation is a hidden tax. It’s a powerful (and often invisible and unstoppable) way for a government to pay for its goods and services without raising the visible taxes that make people angry.

Warren Buffett is widely regarded as America’s best long-term investor. He has clearly moved from concerns about unemployment to concerns about inflation.

“We are witnessing substantial inflation”, Buffett said at Berkshire Hathaway’s annual meeting. “We are raising the prices. People are raising the prices to us, and that is accepted.”

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Buffett’s experience in the private sector is bolstered by former Treasury Secretary and PhD in Economics Larry Summers, who warned in a forum that inflation indicators were “a flashing red alarm” and that “all the signs are that inflation is starting to explode.

“We provided much greater demand over the next two years than any plausible estimate of the economy’s production potential, and that meant substantial price increases,” Summers said.

As my daughter Jackie Cushman (who holds the Chartered Financial Analyst designation) wrote in a recent column:

“Younger people may soon have the opportunity to learn more about inflation and possibly stagflation. The US personal consumption expenditure price index rose 1.6% in February through Compared to over a year ago. The forecast for March is 2.3%. The consumer price index was 2.6% in March and the producer price index, which measures wholesale prices, was 4.2% that month. Food is more expensive, housing is through the roof and I was shocked at the gas prices this week. “

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Inflation will rise because the Biden administration has no other technique to pay for the massive spending that its various allies need.

Teacher unions must be paid. Government employees must be paid. Blue states with impossible pension burdens and grossly inefficient bureaucracies and labor rules need to get money from Washington. Left activists must receive federal funds to redouble their efforts to radically change America.

Trying to train Americans to quit work and join an addictive society to rely on government instead of themselves is taking a huge amount of money. It also reduces tax revenue (since people stop working) while increasing the cost of caring for those who refuse to work.

What makes this massive spending program so hard to sustain is the fact that the American people are deeply against tax increases.

According to pollster Scott Rasmussen, Americans prefer less government and less taxes. In fact, as President Biden fights for a tax hike – which he says would apply only to people earning more than $ 400,000 – their instinctive distrust of politicians leads Americans to favor a reduction of federal income tax by a majority of 75% to 25%.

Governing America must begin with the reality that America was founded by a revolution started in part by people angry at the government for taxes seen as unfair and oppressive.

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In the face of popular hostility to taxes and intense demands from the left for more public spending, the classic response has been a deliberate policy of inflation.

Inflation will be the key by-product of the Biden administration’s desperate strategy to spend beyond its means.

The government cheating by inflating the currency is as old as the government itself.

Back in the days when coins were all metal, governments would begin to shave off part of each coin, which would then provide precious metals for minting lighter coins. Gold and silver coins have also been degraded by mixing cheap metals into them. This led to the habit of biting the coins to make sure they were real.

With the invention of paper money, it became easier to fool people by simply printing more paper money than there were reserves to support them. The result is that the dollar would lose value every year because there was more paper money than there were goods and services. Scarcity would lead to price increases.

Inflation is especially bad for the poor, retirees and small businesses. They don’t have the resources to absorb inflation. Thus, their standard of living decreases with each year of inflation.

When President Biden promises not to raise taxes for people who earn less than $ 400,000 a year, he is deeply misleading the American people. His big spending and big deficit program will raise the price of everything – and everyone will pay the hidden Biden tax.

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Most of us already pay the hidden Biden tax every time we go to buy gasoline. This is due to the combination of the destruction of the Keystone XL pipeline, the restriction of exploration on federal lands and a weakening dollar raising the price of oil in the world market (where it is measured in dollars and increases therefore when the dollar falls).

As you shop, keep watching for hidden taxes on Biden.

CLICK HERE TO LEARN MORE FROM NEWT GINGRICH

To read, hear and watch more of Newt’s comments, visit Gingrich360.com.


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Louis Foulds

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