On Thursday, Fox News’ Bill Hemmer pushed back against White House economic adviser Jared Bernstein in the middle of a rant about how raising taxes in the middle of a recessionary period is a good idea.
Bernstein claimed that putting in place 15 percent minimum tax on large corporations will help the economy and lower inflation. This tax was included in the new bill released by Senate Majority Chuck Schumer and Democrat West Virginia Joe Manchin this week. Next News Network reported on that here.
“It’s my professional opinion that the highly progressive tax proposal in this bill are very much needed,” Bernstein said.
“One of the things that didn’t come out in the conversation I heard earlier here as I was standing here roasting in the sun, was the fact that the minimum tax that is in this bill on corporations — a 15% book minimum tax — only hits corporations above a billion dollars in profits. And 15% is well below the corporate tax rate of 21%. That is a fairness issue, it is an issue that helps us with this problem,” continued the advisor.
“But you know any company that is trying to protect their market cap and they’re trying to protect every quarter they report to stockholders, they’re going to either cut jobs or pass that tax onto consumers that they are doing business with,” Hemmer cut in. “That’s the reality in American economics.”
The advisor then claimed that the tax raise will help cut the deficit.
“Let me finish. If you look at the record of how tax increases like this play out, not only do they not hurt jobs or investment when you’re targeting the very top of the income scale, but they will do something that’s very important to President Biden and to Senator Manchin as well,” Bernstein said. “They will further reduce the budget deficit, that is disinflationary in this environment. So yes, we think this is a very good idea.”
Hemmer said that a report found lower-income Americans are under a tremendous “downward slide” from inflation.
“They’re actually beating inflation,” Bernstein said. “They’ve been growing at double digit rates and that’s helpful to low paid workers. We have to do more to help them with these inflationary pressures. Now when you’re talking about a gas price that’s down about 74-5 cents a gallon, that’s obviously more important as a share of income to those lower income consumers. But they are very much in the minds of our policymaking when we’re trying to really help them save costs.”
According to the report released today by the Bureau of Economic Analysis (BEA), the country’s gross domestic product (GDP) has decreased for the second consecutive quarter at a rate of 0.9 percent. This means that the economy underperformed what many economists thought it would after they estimated it would grow by 0.4 percent in the second quarter. In the first quarter of the year the GDP had fallen by 1.6 percent.
This means the US is in a recession and the Biden administration is trying to spend more and tax us more.
Biden can try and spin this as much as he wants, but Americans are not buying it. Look how bad Biden is doing in polls. This new bill is not going to save the sinking ship of the Democrat party and their push toward making Americans more poor with bad policy. Do you think they want more inflation or are they just ignorant?