[Congressional Record Volume 168, Number 118 (Monday, July 18, 2022)]
[Senate]
[Pages S3323-S3324]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
Inflation
Mr. GRASSLEY. Madam President, at each of my 99 county meetings and
in conversations with Iowans generally, the record cost of living is
top of mind as Iowa families feel the impact of 9.1 percent inflation.
They feel that on their family budgets, for sure.
Due to rampant inflation spurred by reckless government spending,
consumer prices are escalating at a historic pace. Middle-class
Americans are paying more for everything from gasoline, food, and
shelter, to home furnishings, prescription drugs, and clothing.
Since President Biden took office January 2021, consumer prices have
increased, on average, 12 percent nationally. As a result, the average
Iowa household has seen its monthly living expenses increase to $670 a
month. The rising cost of transportation, energy, and food has hit
household budgets particularly hard.
Since January 2021, Americans on average are paying an extra $206 a
month on energy, $334 a month on transportation and gas, and an
additional $76 a month for food. It is no wonder inflation is the No. 1
concern that I hear about as I tour Iowa's 99 counties.
Rising wages have helped some Iowans manage the rising cost of
living. However, for most, rising prices have far outpaced the wage
gains. While trying to make up an extra $600 a month is hard enough for
wage earners, it is next to impossible for senior
[[Page S3324]]
citizens who are on fixed incomes. For senior citizens, there is no
prospect of getting a raise like you might get if you have a job. They
must make do by stretching their Social Security checks, their
pensions, or investment income, if they have that. They must count on
just stretching that as far as they can.
While there is an annual cost of living adjustment intended to
maintain the purchasing power of Social Security benefits, this
adjustment lags inflation increases. The 5.9 percent COLA for 2022 was
the largest increase since 1982, the last time we had this out-of-
control inflation. However, that is far below the 9.1 percent annual
inflation rate reported for June. So just like wages go up 5.5, they
can't keep up with a 9.1 percent increase inflation.
So you get a 5.9 percent increase in your COLA for Social Security;
that is far below the 9.1 percent increase in inflation. Now, the
Social Security Administration reports the 2023 COLA will be between
7.3 percent and 10.8 percent. Well, that might help. But will it make
up for what inflation is?
Unfortunately, seniors have another 6 months until they see this
relief in their benefit payments.
The current turmoil in the stock market has made it even harder for
seniors to keep their heads above water. They are seeing their
retirement savings in 401(k)s, their IRAs, and their non-tax-advantaged
accounts eroded by stock market declines, by inflation, and by taxes.
Seniors are understandably looking to the administration and to this
very Congress to take action to address inflation and rising prices.
Unfortunately, all the administration and a majority in Congress have
offered them are false assurances, more reckless spending, and damaging
tax hikes.
It is time that we try an entirely different approach. That approach
should be one focused on fiscal prudence, targeted non-inflation
inducing relief, and increasing market competition or boosting supply.
The most important thing Congress can do to fight inflation is stop
its reckless spending. Even better would be to trim the budget to
eliminate unnecessary spending.
As for providing inflation relief, it must be done in a way that
won't add to our growing debt or further fuel the flames of inflation.
One way to do this is to provide targeted inflation relief that
incentivizes and rewards taxpayers who save rather than spend.
This is the approach taken in the Middle-Class Savings and Investment
Act, which I introduced last month. Under my legislation, most middle-
class savings and investment income would be subject to zero tax. This
means middle-class seniors would be subject to no Federal income tax on
their long-term capital gains and dividend income. They would also be
exempt from Federal tax on up to $600 of interest income that they earn
in a year. Exempting most middle-class savings from tax not only
provides relief to those seniors and to others but also will reduce tax
bias that favors consumption over saving.
While not a silver bullet by any stretch of the imagination to stop
inflation, encouraging more consumers to save rather than spend may
help reduce inflation pressures by dampening demand.
Importantly, my proposal is fully paid for, so it won't add to our
unsustainable debt and deficits.
In addition to practicing fiscal responsibility and providing
sensible, targeted relief, I support policies designed to hold down
prices by increasing supply and promoting greater competition in the
marketplace. A prime example of this is my work to rein in out-of-
control prescription drug prices.
Americans--especially our seniors--are paying too much for their
prescription drugs. AARP says brand-name drugs that seniors use are
going up more than twice the rate of inflation. Recent data indicates
that nearly a half million seniors filled a single prescription that
met their out-of-pocket threshold and millions of seniors are reaching
the catastrophic phase of Part D.
We must act to lower prescription drug prices. I passed out of the
Finance Committee a bipartisan and negotiated bill that will lower the
cost of prescription drugs. It is called Grassley-Wyden or by its name
the ``Prescription Drug Pricing Reduction Act.'' It saves seniors $72
billion and taxpayers $95 billion. It caps out-of-pocket costs at
$3,100 and eliminates the doughnut hole. And perhaps the most important
part of it will also cap year-over-year price increases of prescription
drugs at the CPI. This also ends taxpayer subsidies to Big Pharma and
provides real relief to our seniors.
Let's not waste another minute to lower drug prices. I will work with
anyone who wants to pass the bipartisan Grassley-Wyden bill.
In addition to prescription drugs, I am leading the charge to lower
the cost of grocery bills. The big four meatpackers who have over 85
percent of the market use anticompetitive tactics to hurt smaller
producers or independent family farmers. While independent farmers in
Iowa are forced to sell livestock at dirt-cheap prices, the cost to the
consumer is climbing to a historic high level. This is happening at the
same time the big four packers are reaping record profits.
Just this past week, Sysco--the largest food distributor in the
United States--filed a lawsuit against these very same big four packers
alleging price fixing. Sysco claims that these packers intentionally
reduce the number of slaughtered cattle to inflate beef prices that
families must pay at the supermarket.
We must maintain a cash market for cattle producers and thus increase
competition. Toward this goal, I am spearheading two bipartisan bills
that sailed through the Senate Agriculture Committee that would do just
that.
Another reason why we are seeing high prices on store shelves is the
high price of gasoline and diesel. Contrary to what some people
believe, food does not grow on grocery store shelves; food comes to the
stores on trucks. And our country has never seen prices at the pump as
high as they are right now. In fact, gas prices have doubled since
President Biden took office.
Instead of focusing on domestic fuel production, the President and
his administration have caved to environmentalists in shaping our
energy policies. Since energy is an input in every item on the store
shelves, energy prices mean climbing prices at the cash register at Hy-
Vee in Des Moines, IA, or Walmart anyplace in the country and every
other store.
It is time to reverse course on President Biden's energy policies and
pursue an ``all of the above'' strategy. Let's go back to being energy
independent rather than energy dependent.
Instead of just talking about inflation and its impact on Iowa
families and seniors, it is time for this Congress to stop reckless
spending and start focusing on commonsense relief and reforms. I am
leading the charge to do just that through targeted tax relief--the
savings bill that I talked about; market reforms in key industries to
hold down prices, like the cattle bill I was talking about; and by
boosting the supply of fuel to keep prices at the pump in check. I urge
my colleagues on both sides of the aisle to join me in these efforts.
I yield the floor.
I suggest the absence of a quorum.
The ACTING PRESIDENT pro tempore. The clerk will call the roll.
The bill clerk proceeded to call the roll.
Madam President, I ask unanimous consent that the order for the
quorum call be rescinded.
The PRESIDING OFFICER (Ms. Duckworth). Without objection, it is so
ordered.