House Speaker Kevin McCarthy has spoken out against the Biden administration’s plans to raise taxes, arguing that it is not a solution to the nation’s economic problems. In an interview with CNBC on Monday, McCarthy highlighted that despite the US’s increase in GDP, the real problem lies in the country’s spending habits.
McCarthy explained, “The problem is not about how much money we’re bringing in, where the president just wants to raise more taxes. It’s our spending.” He further added, “On a 50-year average, we normally only spend 21% of GDP. Right now, we’re spending 23.6% on our way to 25%. So if you don’t tackle the spending problem, you’re never going to solve it.”
McCarthy believes that the focus should be on cutting unnecessary expenditures rather than burdening the American taxpayer with additional taxes. The House Speaker also warned that increasing the national debt ceiling would only lead to more inflation.
“If you ignore this problem and you just raise the debt ceiling, our debt is now $31 trillion. It’s bigger than our entire economy by 20%. You’re at a tipping point. So all you’re going to do is cause more inflation,” he said.
McCarthy emphasized that the country’s debt is already at a critical point and urged lawmakers to take immediate action to address the spending issue.
The government has a SPENDING problem, not a REVENUE problem.
— RNC Research (@RNCResearch) April 17, 2023
Many have supported McCarthy’s stance on the matter, arguing that the Biden administration’s proposed tax hikes would only hurt small businesses and the middle class. Instead, they believe that the focus should be on reducing government spending and promoting policies that encourage economic growth.
With the national debt continuing to rise, it remains to be seen what steps the government will take to address the issue.