A recession is likely coming, but Democrats and the Biden administration want to raise taxes on American businesses, and that will drive inflation even further, Sen. Steve Daines told Newsmax Wednesday.
"This administration is throwing more gasoline on that inflation fire versus trying to find ways to reduce taxes," the Montana Republican said on Newsmax's "National Report." "They're going to try to increase taxes, only making it worse."
President Joe Biden, Senate Majority Leader Chuck Schumer, and House Speaker Nancy Pelosi are "trying to jam through" a 4% tax increase on pass-through businesses, and that will mean "higher costs and more inflation," said Daines.
The highly contested measures to tax owners of pass-through businesses such as limited partnerships and LLCs include a surtax on people with ultra-high incomes, reports The Washington Post.
Daines pointed out that 95% of American businesses are called pass-throughs, and said increasing taxes on them will just make inflation worse.
The congressman's comments come after the new reports Wednesday showing consumer prices continued to grow in June, bringing the national inflation rate to 9.1%, the highest increase in inflation in just under 41 years.
"This is having a huge impact on American families," said Daines. "You translate that to what's going on at the grocery store, at the gas pump, it's $5,500 a year more that Americans have to pay because of [Joe] Biden's inflation."
He also pointed out that there is a global energy crisis stemming in part from Biden's actions.
"When you let these climate-crazy [people] shut down pipelines and shut down nuclear plants, shut down coal plants like we've seen happen here in the United States and Europe, it creates a global energy crisis," said Daines.
But instead of flying to an oil-rich state like Texas, North Dakota, or Alaska, Biden is in the Middle East, where he will visit Saudi Arabia and make a plea for increased oil production, the congressman added.
And all this will add up to a recession like the one that happened in the 1970s, said Daines.
"I remember the days back in the ’70s when we had [an] oil crisis," he said. "We did we depend on the Middle East [and] oil prices quadrupled. It had a huge effect on the economy."
Interest rates at the time climbed to 18.6% for a 30-year fixed mortgage during then-President Jimmy Carter's term, he noted.
"Thank God for Ronald Reagan, who came in and changed the course of America," said Daines. "You're going to see the Federal Reserve, I think, act aggressively by raising interest rates continually throughout the rest of the year."
And that, combined with inflation, will cause a "major slowdown" of the economy, said Daines, and that's where a recession is coming.
Daines also talked about new legislation he has introduced to protect retirement savings from the "woke ideology" being shown by many American corporations.
"They're more focused on issues of climate, I call it climate craziness, versus a balanced view of American energy," said Daines. "When they put what they call stakeholders ahead of [actual] shareholders, that causes big problems for the price of stocks. You see how many American people are waking up looking at their 401(k)s, looking at the retirement savings, and seeing dramatic decreases because you've got more boardrooms focused on issues that matter more to their far-left ideologues instead of doing the right thing for shareholders and those retirees who depend on those 401(k) accounts."
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