MSNBC’s Andrea Mitchell knocks Republicans for planned tax cuts, suggests it would worsen inflation

MSNBC anchor Andrea Mitchell slammed Republicans for signaling efforts to cut taxes should they regain control of Congress, suggesting such a move could hurt the economy.

Mitchell has criticized Republican plans to recodify tax cuts signed under the Trump administration in 2017.

“One of the things they plan to do when they take over is to codify Donald Trump’s massive tax cuts — are you talking about a hole in the deficit, and what would that do to inflation at this point in the economy?” Mitchell asked on Wednesday.

Harvard Kennedy School professor Jason Furman claimed that while Republicans continue to harp on the US inflation rate, many of their proposed policies would actually make inflation worse, not better.

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“The idea you’re putting at the heart of your agenda, you know that a dramatic tax cut means you’re going to end up with more inflation, more budget deficits, higher interest rates and higher mortgage payments,” he said.

Furman added that this is a “real disconnect” between Republicans’ concerns and their “lack of resolution.”

The Post report adds that former House Speaker Newt Gingrich told Republican leaders that regaining the House and Senate could put President Biden in a “political bond” over taxes. Such a situation would force him to choose between vetoing tax cuts, which would likely hurt him politically in 2024, or allowing Republicans to win a meaningful legislative victory.

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According to the Washington Post, “many economists claim” that the GOP’s plans to pass tax cuts are at odds with its promises to fight inflation and reduce the deficit. The report found that tax cuts fuel inflation, increasing economic demand and throwing it out of balance with supply.

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But a number of tax policy groups, including The Tax Foundation, the country’s largest, disagree with the Post’s sources.

In particular, the Tax Foundation wrote that it would be “extremely unwise” to levy taxes, especially taxes advocated by the Biden administration, at a time of negative growth and interest rate hikes.

In addition, it added that most talks about the relationship between taxes and inflation are “simple”. In general, inflation is due to the indiscriminate increase in the money supply, and lower or higher taxes do not necessarily mean higher or lower inflation.

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Senate Republicans also introduced legislation this week that would prevent the IRS from using the $80 billion in new spending powers it received this year to audit taxpayers who make less than $400,000 earn per year.

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The two-page bill simply states that “none of the funds” provided to the IRS in the Inflation Reduction Act “shall be used to audit taxpayers with taxable incomes below $400,000.”

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