07.28.22

Graham to CBO: Given Current State of Economy, Evaluate Damage Dems’ Updated Reckless Tax and Spend Bill Could Cause

“I fear this latest tax and spending proposal will only increase Americans’ suffering.”

WASHINGTON – Last night, Congressional Democrats revealed an updated version of their so-called “Build Back Better” legislation. Senate Budget Committee Ranking Member Lindsey Graham (R-South Carolina) today asked the Congressional Budget Office (CBO) about the current fragile state of our nation’s economy and the potential impact of this latest Reckless Tax and Spend bill.

Graham wrote: “The American people and Members of Congress deserve more information before moving forward with this reckless proposal to hike taxes and increase spending. I have several questions about the current fragile state of our nation’s economy and the potential impact of this latest reconciliation proposal: 

  1. As you know, the Commerce Department just reported that real gross domestic product (GDP) shrank for the second consecutive quarter this year. Are we currently in a recession?
  2. Inflation in the United States is at a 40-year record high and is increasingly harming family and small business budgets. The updated legislation claims to address inflation. For the last two bills enacted via reconciliation, CBO has published estimates of the impact on near-term inflation. If enacted, what impact would this legislation have on consumer price inflation in calendar years 2022 and 2023?
  3. What is the highest income level an individual and family of four can earn while still qualifying for the expanded Affordable Care Act subsidies in Subtitle C of the substitute amendment?
  4. Section 10101 of the substitute amendment introduces a new 15 percent minimum tax on certain corporations’ adjusted financial statement income. What effect would such a tax have on business investment and GDP?”

Graham continued: “As you are well aware, I remain gravely concerned about inflation. Record high inflation is not just a number from a government agency. Inflation is about a deteriorating quality of life for everyday working people in South Carolina and across the United States. Inflation negatively impacts families struggling to buy gas, pay for food, and deal with the uncertainties of life. Every cost in the family budget is going up at an incredible rate. I fear this latest tax and spending proposal will only increase Americans’ suffering.”

Read Graham’s letter to CBO HERE.

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