Tuesday on CNBC’s “Squawk Box,” Rep. Kevin Brady (R-TX) warned that looming tax hikes in the Senate were “creating real problems” in the U.S. economy.
Brady advised that President Joe Biden “talking about higher taxes nearly every week” was ultimately having an inflationary impact.
“What we didn’t see is anything, any incentives, to drive workers back to their jobs,” Brady outlined. “In fact, there seems to be almost a denial of that worker shortage. Secondly, I think these looming tax hikes that are still out there in the Senate, I think that’s creating real problems as well because from what I hear from our local businesses — worker shortage still high; inflation, as you noted, has become now the biggest concern. But in my town hall meetings, I did yesterday from small businesses, they’re asking about potential tax hikes. In this economy, that ends up in higher prices as well. So, I think that’s a worry.”
Host Joe Kernen said it was a “stretch” to suggest looming tax increases impacted inflation.
“Inflation, not yet,” Brady replied. “Worry on investment from main street businesses, yes, because, again, the president is talking about higher taxes nearly every week. We know where that ultimately lands.”
“We ought to be driving more investment in the U.S., especially along the supply chain,” he added. “New equipment, new technology, new innovation ought to be what the administration is championing, but they are still stuck on some form of Build Back Better, and even if you look at the trimmed down versions, you’re talking about a trillion and a half dollars of tax hikes on job creators at the worst possible time. They pay attention to this.”
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