ANALYSIS: Typical family pays $5,000 for Bidenflation tax; minorities, young adults, middle class hit hardest
February 4, 2022 - Blog - Press Releases - Select Revenue Measures - Worker and Family Support
Bidenflation is taking a bite out of Americans’ paychecks, costing the typical American family $5,000 a year, and resulting in minorities, young adults, and the middle class suffering most.
Biden’s inflation tax costs the typical family $5,000 a year, according to analysis based on the Congressional Budget Office (CBO) and the Penn Wharton Budget Model.
* The Penn Wharton Budget Model found inflation costs the average U.S. household $3,500 in higher prices on “the same level of consumption of goods and services as in previous years." Lower-income households are forced to spend even more, the study found.
* Inflation also pushes taxpayers into higher tax brackets, costing them more in higher taxes. Using a recent CBO report with today’s inflation rate, this translates into a $1,500 tax increase for a household earning the median family income.
* With $3,500 in lost purchasing power and $1,500 in higher taxes, this painful Biden inflation tax is costing the typical family $5,000 a year.
Minorities, young adults, and the middle class suffer most, according to Wells Fargo analysis :
* America’s middle class families are being hit hardest. When sorting by income, the middle earners experienced the highest inflation rate.
* American minorities suffer the most. Hispanic and Latino Americans experienced the highest inflation rate, and Black Americans aren’t far behind.
* Those starting a career or a family are getting paycuts. Inflation impacts young adults the most, including those just starting their careers or families. While 35 - 44-year-olds experienced the highest inflation rate, those younger than 25, and between 25 and 34 weren’t far behind.
Here’s the complete breakdown.
