Inflation is rising at near-record rates and Sen. Rand Paul, R-Ky., said he believes it is "only going to get worse," calling it the "hidden tax" of the COVID-19 stimulus packages.
"In recent months, prices on nearly everything from gas, food, and clothes to electricity, car prices, and rent, have all increased, and unfortunately it's only going to get worse," Paul said in a statement to Fox News Digital. "Congress needs to realize that further spending at this time of rapidly rising prices is only going to continue the trend of rising prices on this nation’s already vulnerable businesses and families."
The consumer price index (CPI), which is a measure of inflation, rose 7% annually in December, marking the highest increase since June 1982 when the rate hit 7.1%, according to the Bureau of Labor Statistics (BLS).
If you are struggling to pay off debt, consolidating with a personal loan could help you lower your monthly payments and keep more money in your bank account amid rising prices. Visit Credible to find your personalized interest rate without affecting your credit score.
Rand Paul calls out inflation as a ‘hidden tax’
While President Joe Biden has pledged that he would not raise taxes on the middle class, Paul released a report arguing that inflation had become a "hidden tax" on the middle class. He explained that low- and middle-income individuals are more exposed to items most affected by inflation such as gas, used vehicles and food.
"$4.9 trillion in COVID-19 stimulus spending has led to one of the highest and sustained levels of inflation in U.S. history," Paul said in the report. "Though government stimulus spending was intended as a form of relief, and low and middle-income families, as well as small business owners, were promised that their taxes would not increase as a result of these packages, Americans are now paying a ‘hidden tax’ for these policies."
If you are trying to pay off debt, a personal loan could help you consolidate your monthly payments or lower your interest rate. Visit Credible to compare multiple lenders at once and choose the one with the best interest rate for you.
Rand Paul: ‘This crisis is one of our own making’
In the report, Paul said that the bipartisan spending bills that were passed by Congress to provide stimulus during the pandemic created a larger inflation problem.
"While Congress was able to unite in 2020 in spending $4.9 trillion, unity does not always lead to virtuous outcomes, and this particular example of unity left Americans with the most difficult economic conditions in recent history," Paul wrote. "This crisis is one of our own making."
The report showed that 70% of those earning under $40,000 per year had moderate or severe hardships due to inflation, while 28% of those earning over $100,000 annually said the same.
If you are struggling to pay off debt, you could consider taking out a personal loan to help lower your monthly payments. Visit Credible to speak to a loan expert and get all of your questions answered.
Have a finance-related question, but don't know who to ask? Email The Credible Money Expert at firstname.lastname@example.org and your question might be answered by Credible in our Money Expert column.