Random Grab Bag of Corporate Welfare and Tax Hikes Does Nothing to Address Inflation

Jul 28, 2022 by AFP

Arlington, VA – In response to this morning’s GDP data indicating -0.9% growth in Q2, which confirms two consecutive quarters of negative growth, and reports of a pending reconciliation deal between Majority Leader Chuck Schumer and Senator Joe Manchin, AFP Vice President of Government Affairs Akash Chougule issued the following statement:

“When Americans feel like they need to choose between spending their paycheck on food or gas, whether Washington declares a recession or not doesn’t really matter. What does matter is what Washington does to solve the problem and provide relief. This latest proposal confirms that Washington continues to be in denial about the policies that got us to this point and explains why nearly 90 percent of Americans think we’re headed in the wrong direction.

“The Schumer/Manchin proposal is a random grab bag of corporate welfare and tax hikes that will do nothing to address inflation – except potentially put us even deeper into recession. For years, members of both parties – including Senator Manchin – agreed you don’t raise taxes in a recession because it would be devastating to the economy. With a rapidly shrinking economy, inflation at historic highs, and gas prices over $4 a gallon, you’d be hard-pressed to find a worse time for more spending and higher taxes.

“Furthermore, nothing in this proposal does anything to increase the production and supply of oil and gas here in America, which Senator Manchin claimed was one of his top priorities. The so-called deficit reduction is typical Washington smoke-and-mirrors and erased with spending increases elsewhere. It’s clear from this purely political bill that Washington has no real plan to address inflation and AFP will make sure those who support it will be held accountable.”

Earlier this month as the Senate was reviving negotiations for a reconciliation deal, Americans for Prosperity launched targeted digital ads to connect voters to the true cost of continuing the same reckless tax and spend policies that undermine the economy and make life harder for millions of Americans. The ads are currently targeting Arizona, Georgia, Nevada, New Hampshire, and West Virginia.