When Congress cuts income taxes, they increase your inflation tax in secret. This is like taking money out of your left pocket rather than your right pocket. Either way, you pay. When it comes to taxes, ignore tax rates and focus on government spending. Your taxes only go down when spending goes down, not when income taxes go down.
Income tax cuts combined with spending increases creates massive deficits. Since people don’t want to loan money to the federal government at 2 percent interest rates, the Federal Reserve electronically prints dollars to pay for massive deficit spending. The more money they print, the more inflation goes up.
Real world inflation, without deceptive “hedonic” adjustments, is about 7 percent per year, not the 2 percent advertised amount. Since 1996, college education has increased 200 percent. Child care has increased 125 percent. Health care has increased 110 percent. Inflation hits the poor the most. Incredible human suffering is hidden inside average inflation statistics.
This is why I am campaigning to reform the Federal Reserve and the financial system. We need a new system now, before a health crisis becomes a food crisis. Vote for me for U.S. Senate in 2018.