Washington, D.C.–The Penn Wharton University of Pennsylvania
Budget Model released an analysis today showing average U.S. households will
spend $3,500 more in 2021 just to keep up with inflation, with lower-income
households particularly feeling inflation’s sting. U.S. Senate Finance Committee Ranking Member
Mike Crapo (R-Idaho) says that if the Democrats’ reckless tax-and-spend bill is
passed, American households can expect this stealth tax to be even higher.
From the analysis: “We estimate that
inflation in 2021 will require the average U.S. household to spend around
$3,500 more in 2021 to achieve the same level of consumption of goods and
services as in recent previous years (2019 or 2020). Moreover, we estimate that lower-income
households spend more of their budget on goods and services that have been more
impacted by inflation. Lower income
households will have to spend about 7 percent more while higher income
households will have to spend about 6 percent more.”
“Americans
have been extremely clear that inflation and rising costs are their top
concerns right now,” said Crapo. “Inflation is now at 6.8 percent, reaching a
near 40-year high. The producer price
index is up 9.6 percent, the fastest pace on record. This analysis is telling us that even without
the Democrats’ reckless tax-and-spend legislation, lower-income households will
experience a $3,500 stealth tax.
If Democrats push forward with their bill, which is front-loaded with
inflationary spending and full of job-killing tax hikes, Americans can expect
to pay even more to keep up with rising costs without getting ahead.”
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