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Tuesday Jul 05, 2022

‘It’s only going to get worse’ – Indy News

Kentucky GOP Sen. Rand Paul recently published a shocking report on rising inflation and its worrying impact on low- and middle-income households and small businesses.

In an 18-page report called “The Hidden Tax”, Paul, who serves on the Senate Committee on Small Business and Entrepreneurship, blamed a 7% rise in consumer prices – the highest in 40 years – for “congressional excessive coronavirus relief spending.”

Paul further warns that rising prices “are only going to get worse.”

“In recent months, prices have risen for almost everything from gas, food and clothing to electricity, car prices and rent, and unfortunately this is only going to get worse,” Paul said in a statement. “Congress needs to understand that further spending at this time of rapidly rising prices is only going to continue the trend of rising prices in this already weak business and households in this country.”

The “Hidden Tax” report details how the prices of daily necessities have risen dramatically in the last year since Joe Biden took office.

“The V 4.9 trillion in COVID-19 stimulus spending has led to one of the highest and most sustainable levels of inflation in U.S. history,” Paul said.

“While government stimulus was intended as a form of spending relief, and low- and middle-income families, as well as small business owners, were promised that the package would not increase their taxes, Americans are now paying a ‘hidden’ amount. Taxes for this policy, “he added.

Below are some of the topline figures from Paul’s report:

-The price of a tank of gas increased from 25 25.32 in December 2020 to $ 38.04 in December 2021.
Cost 2020 106.30 in 2020, December 2021.9

-Although this increase may seem insignificant to wealthy households, it places an unbalanced burden on low- and middle-income households who spend a large portion of their income.
These.

71 percent of households earning less than $ 40,000 a year indicate economic hardship due to rising prices, with only 29 percent of households earning $ 100,000 or more.

– Inflation hurts small businesses disproportionately. Eighty-two percent of small businesses have reported rising prices in the past few months, with 42 percent raising prices by 20 percent or more. Forty-five percent of small businesses reported borrowing this past year to cope with inflationary pressures. Large corporations have reported consistent profit margins.

In 2021, overall energy prices, including electricity, propane, gasoline and other energy sources, rose 29.3 percent. Gasoline rose 49.6 percent on its own. From the perspective, the price of a gas tank for the average American in November 2020 is $ 25.32. The average cost of the same tank of gas in November 2021 is US $ 38.04.

This trend is even more striking as Americans drive significantly less in 2020 and 2021 than in previous years. In addition to the jump in electricity prices, used cars and food also contributed to the rise in prices by 37.3 percent and 6.3 percent, respectively. Percent respectively.

– Rising prices also disproportionately affect low- and middle-income households A recent Gallup poll reported from the recent inflationary trend showed a disparity in the amount of hardship between both income and education levels. About 70 percent of those earning less than $ 40,000 a year reported moderate or severe hardship as a result of inflation last year, compared to 28 percent of those earning more than $ 100,000 a year.

Post Paul warns Americans about rising inflation: ‘It’s only going to get worse’ was first published in Conservative Brief.

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