Biden admits families are 'feeling the pinch' as he blames Trump for adding $8trillion to the national debt in four years with his tax cuts and downplays inflation concerns
President Joe Biden on Wednesday acknowledged that families are 'feeling the pinch' but he downplayed concerns about inflation and blamed his predecessor for adding trillions to the national debt.
Biden addressed the economy on the same day federal data showed that for the 12 months through July, the consumer price index rose 5.4 percent, unchanged from June and at the highest level since the Great Recession in 2008.
President Joe Biden acknowledged that families are 'feeling the pinch' but he downplayed concerns about inflation
'A lot of families are still feeling the pinch,' Biden said in remarks in the East Room of the White House. 'Family budgets remain tight and paychecks don't go as far as they need to. That has been the reality for millions of households all across America for too long.'
But, he argued, the 'human' infrastructure investments in the $3.5 trillion budget plan that got the first round of approval early Wednesday morning will help ease the economic burden.
His plan includes funds for universal pre-kindergarten, tuition-free community college, paid family leave and clean energy source development. It also allocates billions toward helping immigrant workers onto a pathway to citizenship.
Biden argued his plan is fully paid for, a contrast, he said, to Donald Trump's 2017 tax cuts, which Democrats claim only benefited the wealthy.
'They're going to be fully paid for,' Biden said of his plan. 'This isn't going to be anything like my predecessor, whose unpaid tax cuts and other spending added nearly $8 trillion dollars through his four years to the national debt - $8 trillion. They didn't even afford to try to pay for their tax cuts, which went straight to the largest corporations and the wealthiest Americans.'
Trump’s tax cuts reduced tax rates for businesses and individuals, increased the standard deduction and family tax credits, eliminated personal exemptions and made it less beneficial to itemize deductions.
The non-partisan Congressional Budget Office estimated the Trump tax cuts would add an estimated $2.289 trillion to the national debt over ten years.
Biden is paying for his items by increasing taxes on corporations and the wealthy. 'They'll still make a lot of money but pay their fair share,' he said.
In his remarks, Biden outlined what his administration is doing to ease financial burdens on those still feeling the effects of the COVID pandemic.
He noted that on Friday 40 million families will receive their second child tax cut credit. Additionally, the White House called on OPEC to move faster to restore global supply of petroleum to pre-pandemic levels to help ease gas prices.
Gas prices are up about a $1 from than a year ago as Americans hit peak summer driving season and return to roads after pandemic shut-ins.
Biden advised consumers to be patient.
'These bottlenecks and price spikes will reduce as our economy continues to heal,' he said. 'We will keep a careful eye on inflation each month and trust the Fed to take appropriate action if and when it's needed.'
'There is going to be there going to be some ups and downs, but I am committed to making historic economic recovery reaches every week,' he added.
The rising gas prices and increased inflation have been seized upon by Biden's Republican critics, who are blaming him for the economic tightening.
'As Americans are facing the reality that their money is worth less and less, Biden’s comments today prove how out of touch his administration is with America’s working families,' said Republican National Committee spokeswoman Emma Vaughn in a statement.