(USA Features) Former House Speaker Newt Gingrich told Fox News’s Maria Bartiromo Sunday that if President Joe Biden gets his tax increases on corporations and wealthier Americans, they will impact the poor and working-class as well with “hidden taxes.”
“So every person who hears us today, when you go out to fill your gas tank and you notice that you’re getting less gasoline per dollar, that’s a Biden hidden tax,” he said.
“It will happen with electricity. It’s going to happen with food across the board. We are on the edge of a massive inflation and the Democrats’ answer is print even more money so they get a bad job’s number on Friday and they are saying immediately, ‘Oh, we need to spend another couple of trillion,’ which is exactly the wrong solution if you want the economy to be healthy,” Gingrich added.
Biden and majority Democrats in Congress are proposing reversing most of former President Donald Trump’s 2017 tax cuts, which reduced the corporate tax rate from 35 percent to 21 percent, making American companies far more competitive globally. In addition, experts estimated that additional tax cuts affected the vast majority of earners.
The White House says reversing those cuts are necessary to pay for nearly a nearly $2 trillion infrastructure plan.
“The President’s tax agenda will not only reverse the biggest 2017 tax law giveaways, but reform the tax code so that the wealthy have to play by the same rules as everyone else,” the White House said in a fact sheet. “Importantly, these reforms will also rein in the ways that the tax code widens racial disparities in income and wealth.”
However, the former House Speaker from Georgia talked about a link between government spending and inflation that is “a basic rule of economic history” which occurred during the Roman empire “and other ancient civilizations.”
He added that if citizens resist higher taxes, governments ofted react by deciding to “make up the difference is through inflation, through cheapening money by printing more dollars in our case by literally cheapening gold and silver coins.”
As such, “the result is everybody pays a hidden tax. Now what makes it tragic is the people hit the hardest are the poor.”