Former House Speaker Newt Gingrich (R-Ga.) said Sunday (May 9) that Americans will soon take notice of Biden’s “stealth tax. He predicted that the United States is on the “brink of massive inflation.
Gingrich told Fox News’ Sunday Morning Futures, “Everyone who hears my voice today, when you go out and fill up your car, you’re going to notice that you’re getting less gas for every dollar. That’s Biden’s stealth tax.”
“It’s going to happen on electricity as well. It’s going to happen across the board on food, too,” Gingrich continued, “We’re on the verge of massive inflation, and the Democrats’ answer is to print more money. So, when they got a bad jobs number on Friday, they immediately said, ‘Oh, we need to spend a couple more trillion.’ But if you want a healthy economy, that’s the wrong solution.”
Gingrich said the relationship between government spending and inflation is “a basic rule of economic history” and was a reality in Rome “and other ancient civilizations.” If citizens resist further tax increases, he said, “the government makes a conscious decision to ‘make up the difference with inflation, by printing more dollars to devalue the currency. In our country’s case, this is accomplished by devaluing gold and silver coins.”
Gingrich argues that the result of Biden’s massive spending plan is that everyone is made to pay a hidden tax. “What makes it sad now is that it’s the poor who are being hit the hardest.”
The Biden administration recently said that Biden’s latest spending commitment would cost about $1.8 trillion more. That’s in addition to his $2.25 trillion American jobs plan and $1.9 trillion U.S. bailout plan.
Biden said the spending would be funded through a tax on people earning more than $400,000 a year. But many experts believe that’s not feasible. And the stealth tax Gingrich mentioned is what everyone is paying.
Media mogul Forbes (Steve Forbes) also recently warned that Biden’s stimulus plan would inevitably produce serious inflation in the U.S. economy.
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