[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.