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Newt Gingrich: Beware Biden’s hidden tax increase

Every American goes to pay larger taxes as a result of Biden administration’s insurance policies.

Remember that inflation is a hidden tax. It is a robust (and sometimes unseen and unstoppable) means for a authorities to pay for its items and companies with out elevating seen taxes that make folks offended.

Warren Buffett is broadly thought to be one of the best long-term investor in America. He clearly has moved from considerations about unemployment to considerations about inflation.

“We are seeing substantial inflation,” Buffett mentioned on the annual assembly of Berkshire Hathaway. “We are raising prices. People are raising prices to us, and it’s being accepted.”

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Buffett’s non-public sector expertise is bolstered by former Secretary of the Treasury and Ph.D in economics Larry Summers, who warned throughout a discussion board that inflation indicators have been “flashing red alarm” and that “all the signs are for inflation starting to break out.

“We have been offering demand effectively in extra over the subsequent couple of years of any believable estimate of the economic system’s potential to supply, and that meant substantial worth will increase,” Summers mentioned.

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

“There may quickly be a possibility for many who are youthful to be taught extra about inflation, and probably stagflation. The U.S. Personal Consumption Expenditures Price Index was up 1.6% in February from over a 12 months in the past. The expectation for March is 2.3%. The Consumer Price Index was 2.6% in March and the Producer Price Index, which measures wholesale costs, was 4.2% that month. Food is dearer, housing is thru the roof and I used to be shocked on the gasoline costs simply this week.”

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Inflation will grow because the Biden administration has no other technique for paying for the massive spending its various allies require.

The Teachers Unions must be paid off. Government employees must be paid off. Blue states with impossible pension burdens and enormously inefficient bureaucracies and work rules must get money from Washington. Left-wing activists must be given federal money to increase their efforts to radically change America.

Trying to train Americans to give up work and join a dependency society so they rely on government instead of themselves takes an enormous amount of money. It also cuts revenues from taxes (since people quit working) while increasing the cost of taking care of those who decline to work.

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

According to pollster Scott Rasmussen, Americans favor less government and lower taxes. In fact, while President Biden is fighting for a tax increase – which he claims would apply only to people making above $400,000 – their instinctive distrust of politicians leads Americans to favor cutting federal income taxes by a 75 percent to 25 percent majority.

Governing America must start with the reality that America was founded through a revolution triggered in part by people angry at government for taxes which were seen as unfair and oppressive.

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Faced with popular hostility to taxes and the intense demands from the left for more government spending, the classic answer has been a deliberate policy of inflation.

Inflation will be the key byproduct of the Biden administration’s desperate strategy of spending beyond its means.

Government cheating by inflating currency is as old as government itself.

Back when coins were all metal, governments would begin to shave off part of each coin which would then provide precious metals to mint more light coins. Gold and silver coins were also debased by mixing cheap metals in with them. This led to the habit of biting coins to make sure they were real.

With the invention of paper currency, it became easer to cheat people by simply printing more paper money than there were reserves to back them up. The result is the dollar would lose value every year as there was more paper money than goods and services. The scarcity would lead to price increases.

Inflation is especially bad for the poor, the retired, and small businesses. They do not have the resources to absorb inflation. So, their standard of living drops with each year of inflation.

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

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Most of us are already paying the hidden Biden tax every time we go to buy gasoline. This is thanks to the combination of killing the Keystone XL Pipeline, restricting exploration on federal land, and a weakening dollar raising the price of oil on the world market (where it is measured in dollars and therefore goes higher when the dollar declines).

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

CLICK HERE TO READ MORE FROM NEWT GINGRICH

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

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