Tax the rich and pass a prescription drug bill: White House Economic Advisor Brian Deese proposes ways to make a’real difference’ on’unacceptable’ inflation levels
- ‘Prices are unacceptably high right now,’ the economic advisor said
- May’s figures indicated that prices are running 8.6 percent higher than they were one year ago
- ‘Lowering prescription drug costs is one piece. Lowering utility costs by providing tax incentives for energy is another piece,’ Deese said
- ‘Equally important, lowering the federal deficit by enacting long overdue tax reform,’ he added
- Biden has pushed for a 15 percent minimum tax and to end the Trump 2017 tax cuts on businesses and high earners
National Economic Council director Brian Deese pointed his finger at Congress for the solution to record inflation, arguing Sunday morning that legislation to lower prescription drug prices and reduce the federal deficit by taxing the wealthy was the way to make a’real difference.’
‘Prices are unacceptably high right now,’ the economic advisor said. May’s figures indicated that prices are running 8.6 percent higher than they were one year ago.
‘Lowering prescription drug costs is one piece. Lowering utility costs by providing tax incentives for energy is another piece, but equally important, lowering the federal deficit by enacting long overdue tax reform,’ Deese told CBS’ Margaret Brennan on’Face the Nation. ‘
Biden has pushed for a 15 percent minimum tax and to end the Trump 2017 tax cuts on businesses and high earners.
‘Hiking taxes isn’t going to change the price of milk. When and how are you actually putting forward this package?’ Brennan noted, adding that tax increases and prescription drug cost negotiations failed when they were a part of the president’s Build Back Better bill.
‘Prices are unacceptably high right now,’ Brian Deese said. May’s figures indicated that prices are running 8.6 percent higher than they were one year ago
Deese said that he was hopeful to see progress on a bill’in the coming weeks.’ He also pointed to a bill making its way through Congress that would lower the cost of semiconductor chips, known as the CHIPS Act.
Sen. Majority Leader Chuck Schumer, DN.Y., and Sen. Joe Manchin, DW.Va., Have been talking in recent weeks on a potential bill to bring down the cost of prescription drugs. Democrats are looking to pass narrower legislation on President Biden’s legislative priorities after Manchin killed the $ 1.9 trillion Build Back Better bill.
Speaker Nancy Pelosi, D-Calif., Said on Thursday that negotiations on a slimmed-down social spending package are’alive.’
Manchin gave advocates a glimmer of hope last week that he would give his stamp of approval to a prescription drug bill.
Drug pricing’is something we all agree on,’ Mr. Manchin said at an AARP event, adding’if we do nothing more this year, that’s the one thing that must be done.’
Retirees in the US pay 10 times more for insulin than their counterparts in other rich countries, according to the Mayo Clinic.
The president meanwhile has disregarded criticisms that his big spending is to blame for high costs.
‘I don’t want to hear any more of these lies about reckless spending,’ he said.’We’re changing people’s lives,’ he said before the Federation of Labor and Congress of Industrial Organization convention in Philadelphia.
Biden also told The Associated Press that he believed he had the votes to pass prescription drug cost reform and provide tax incentives for winterizing homes to drive down energy costs.
‘I believe I have the votes to do a number of things,’ Biden said.’One, prescription drugs. Reduce utility bills by providing for — I think we’ll be able to get the ability to have a tax incentive for winterization. ‘
Biden has already tapped the Strategic Petroleum Reserves, which had a negligible effect on gas prices. Last week, he wrote a later to the CEOS of the nation’s major fuel companies threatening to use his’emergency power’ if they do not take action to lower prices.
Federal Chair Jerome Powell has warned the American economy will see even more damage before inflation comes down from its 41-year-high.
The Federal Reserve on Wednesday raised interest rates by 0.75 per cent –their biggest increase since 1994 –in an attempt to rein in inflation. Powell had warned last month that more hikes are likely in the near future.
The measure by the central bank to raise interest rates by .75 will increase its benchmark short-term rate, which affects many consumer and business loans, to between 1.5 percent and 1.75 percent. The result will drive up loan rates for homes, cars, credit cards and other items –making it much more expensive to borrow money.
‘Inflation has obviously surprised to the upside over the past year, and further surprises could be in store. We therefore will need to be nimble in responding to incoming data,’ he said.
‘We think that the public generally sees us as as very likely to be successful in getting inflation down to 2 percent. And that’s critical,’ he noted.’It will take some time to get inflation back down but we will do that.’