A Plan Doomed to Fail

Skyrocketing Inflation and 'Tax the Rich' Is a Plan Doomed to Fail
By Trish Regan

If it seems like your money doesn't go as far as it used to, you're not imagining things... It doesn't.

We all feel it each week in our grocery bills and at the gas pumps... and this year's back-to-school shopping trips seemed to make a bigger dent in our budgets than usual.

I hate to say I told you so, but when I warned of continuing inflation, I wasn't kidding...

This week's inflation numbers were once again alarming. And believe me, we still haven't seen the worst of it.

On Tuesday, the Labor Department reported a 5.3% increase in the prices that consumers pay for goods and services.

The mainstream media of course put its spin on the news, advancing the Biden administration's and the Fed's thesis that inflation "isn't really a problem."

Inflation Data Less Than Forecasted, wrote Bloomberg.
CPI Inflation Comes in Soft in August, said Investor's Business Daily.
Consumer prices post smaller-than-expected increase in August, screamed CNBC.

I'm calling B.S... Should we really be rejoicing because economists expected 5.4% and instead got 5.3%?

It's still a significant inflation percentage and the reality is prices for everyday Americans are up 5.3% from this time last year! And they've been up 5% or more since May.

This is an inflation problem. And it hurts the very people our lawmakers are purporting to help the most.

Inflation acts like a tax – especially in light of the fact that wages aren't going up and the dollar is continually under pressure.

Keep in mind, it will soon grow worse.

You see, the consumer price index data comes on the heels of a massive increase in wholesale prices. The prices that producers pay for goods and services spiked a record 8.3%, up from July's 7.8% increase.

Everything is going up. And in this scenario, one of two things will happen... Either producers pass on their higher costs to consumers, creating more inflation... or profits suffer, creating a problem for stock market valuations.

Both of these outcomes will have direct, negative consequences on your wallet and livelihood.

And watch out, here comes that media and White House spin again... They're dismissing these concerns because "wages are growing."

But they're not. What these crackerjack reporters and Biden officials fail to tell you is that REAL wages – adjusted for inflation – are 1.2% lower on the year.

Inflation is eating into everyday Americans' spending power and shows no signs of stopping.

As I've explained before, the Federal Reserve is less interested in inflation data because "it's transitory," or so it believes. The Fed assures us that once all the supply-chain issues are resolved, then inflation should be no more.

Except it's not just the supply-chain problem... It's also a money-printing problem.

All in, we've printed upward of $6 trillion dollars thus far, and our leaders are looking for an additional $3.5 trillion – a preposterous amount of money.

Senator Joe Manchin gets it... The West Virginia senator – seemingly the only adult in the room these days – is in staunch opposition to the Democrat's $3.5 trillion budget reconciliation package.

Manchin was forced into a bit of a mudslinging contest this week when he had to defend himself against Rep. Alexandria Ocasio-Cortez's accusations that he was working with ExxonMobil and that's why he's against the infrastructure bill.

After referring to her as a "young lady" while responding to her criticism, AOC took the opportunity this week to accuse him of patronizing her for the reference. (You knew that was coming...)

But Manchin understands that you cannot indefinitely print money without suffering serious consequences...

On Monday, Democrats on Capitol Hill revealed a plan that would most definitely mean higher taxes for everyone.

The plan hikes the top statutory income tax rates to 39.6%, while adding a new 3% surtax, and explains that the Obamacare 3.8% tax will cover most income. This combines to equal a 46.4% top federal income tax rate. Top earners in New York City, for example, could face a combined city, state, and federal income tax rate of 61.2%.

And business owners? Good luck... The corporate rate jumps from 21% to 26.5%, with the capital gains rate increasing to 28.8%. The marginal small business tax rate would jump to more than 40%.

Oh and we can't forget, there's also a $600 billion carbon tax, which would basically hurt anyone who has a car, home, or a business.

Somehow, these tax increases are supposed to bring in the big bucks. Well, that and Biden's extra $80 billion in IRS agents who are going to squeeze the money out of everyone.

In other news this week, AOC's wardrobe was certainly in lockstep with her Democratic party's philosophy, as she attended a $30,000-a-plate Met Gala dinner donning a white evening gown with "Tax the Rich" written on the back in bold, red letters.

The Dem liberals may make "stick it to the rich" sound like a good plan...

But ultimately, massive spending and taxing don't work. We are left with the reality of ever-increasing prices, ever-increasing inflation, ever-increasing bills... and no money to pay for any of it.