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Biden's Inflation Tax Is Killing Household Budgets And The Economy

Here we go again: President Biden is simply incapable of telling the truth about the economy.

In his last desperate days until the midterm elections, he continues with fraudulent statements that are not even remotely tied to the facts.

Here’s one: “It’s mega MAGA trickle down. Mega MAGA trickle down — the kind of policies that have failed the country before. And it’ll fail it again. And will fail again. And will mean more wealth to the very wealthy, higher inflation, the middle class. That’s the choice we’re facing.”

He doesn’t seem to remember the Ten Commandments. Remember, thou shall not lie, Mr. President?

So, let’s have a look at the actual facts from the Trump tax cuts.

First, after reducing personal and business taxes in 2017, in the next two years — before the pandemic set in — it was the blue-collar, middle-class, and lower-middle-income employees who received the greatest benefits from the tax cuts.

Median household income rose by $6,500. In one year alone, 2019, typical family income gained $4,000, which was a bigger after-tax pay raise than the prior two administrations combined. The number of Americans lifted out of poverty was 6.6 million.

Household wealth for the bottom 20 percent of income earners increased 34 percent. For the middle-income earners, it was 20 percent. For the entire bottom 50 percent of households, net worth gained an astonishing 40 percent.

These increases were all substantially above gains by the top 1 percent of earners — who barely received any tax relief because their state and local deductions were capped.

That is why rich blue-state Biden backers have been bleating like sheep and goats ever since.

Inequality declined dramatically. Minority unemployment — Blacks, Hispanics, and Asians, including women — fell to record lows.

Because of tax reform, well more than $1 trillion of multinational corporate money parked offshore came home for onshore reinvestment. Business headlines regarding offshore inversions ceased to exist. Growth-enhancing productivity surged, as did new investment in plant and equipment.

With more people working, at record higher wages and reduced tax avoidance, tax revenues soared. Even today, corporate tax revenues are at record highs. Overall federal tax revenues are at 20 percent of GDP — a virtual record. These are facts. You can look them up, government source by government source.

What Mr. Biden is doing is spooning out typical left-wing democratic malarkey. He is incapable of telling the truth. It is a character flaw.

Americans see right through it — which is why they have completely lost confidence in him and his failed policies.

Meanwhile, his radical progressive economics — featuring inflationary spending, regulatory overkill, turning off the oil and gas spigots, rolling back the successful tax cuts — has taken an economy that was booming at a 6.5 percent growth rate when he was inaugurated to one that is contracting just 18 months later.

With slightly more than 1 percent inflation at his inaugural, the CPI has increased 12.8 percent since February 2021, with groceries up 17.5 percent, gasoline up 48 percent, and no end in sight.

The inflation tax is killing household budgets and the economy. He may be telling people the economy is “strong as hell” while licking his favorite ice cream cone, but real wages for working people have fallen 18 straight months. Leading economic indicators are falling like stones and housing is already in a deep recession.

So-called titans of business like Jeff Bezos, Jamie Dimon, Fred Smith, and others are predicting a tough recession next year. What has really happened is Mr. Biden’s radical experiment in big-government socialism has completely failed.

He remains in denial about every key fact, and that is why we are going to see a revolution at the polls in a few weeks.

The cavalry is coming, Mr. President, and you’re going to have to deal with it.

From Mr. Kudlow’s broadcast on Fox Business News.

Larry Kudlow was the Director of the National Economic Council under President Trump from 2018-2021. His Fox Business show "Kudlow" airs at 4 p.m &. and his radio show airs on 770 ABC from 10:00 a.m. to 1:00 p.m.

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