WASHINGTON – President Joe Biden criticized House Republicans in his first major economic comments of the year on Thursday, arguing that the Republican proposals would lead to higher inflation.
Speaking at a steamfitters union hall in Springfield, Virginia, Biden criticized the Republican Party, saying: “This is not your father’s Republican Party. This is a different breed of cat, as they say.”
“They campaigned on inflation. They didn’t say that if they were elected they planned to make things worse,” he said in his speech, a mix of prepared remarks and off-the-cuff remarks.
“Look, this is how they are starting this new term: cutting taxes on billionaires, raising taxes on middle-class families and making inflation worse.”
The president also warned that the Republican Party wants to cut Social Security and Medicare.
“We have come too far to allow that to happen. I won’t let it happen, not on my watch,” said Biden, who has threatened to veto any legislation that comes to his desk that cuts to those programs.
Biden characterized the House GOP economic proposals as a “MAGA economic plan,” a reference to former President Donald Trump’s 2016 “Make America Great Again” campaign slogan.
Thursday’s comments were not the first time Biden has gone after the GOP’s economic plans this year. During a speech on Martin Luther King Jr. Day, Biden called House Republicans’ tax proposals “tax insane,” focusing on their push to repeal new IRS funding and a bill that would abolish the federal tax agency and would replace the income tax with a federal tax. on consumption Biden has vowed to veto his legislation, which will almost certainly fail in the Democratic-controlled Senate.
The first bill the new House Republican majority voted for, sponsored by Rep. Adrian Smith, R-Nebraska, would eliminate more than $70 billion in new IRS spending passed last year as part of the Reduction Act of Biden’s Inflation, including money to hire 87,000 new agents, a frequent target of Republican criticism. The legislation passed the House with a vote of 221-210 along the party line. A second bill that has drawn criticism from Biden, to abolish the IRS, eliminate income taxes and institute a federal excise tax, was introduced this month by Rep. Buddy Carter, R-Ge.
In addition to attacking Republicans on Thursday, Biden also touted the “good news about the American economy” that came out Thursday morning, showing it grew at an annual rate of 2.9% in the fourth quarter of the year. past.
“Jobs are the highest in American history, and wages are up, and they’re faster than inflation. For the past six months, inflation has come down every month, and God willing, we’ll continue to do so. Jobs in manufacturing will continue to grow stronger than it has ever been in the last 40 years. And I don’t think it’s unfair to say that all of this is evidence that Biden’s economic plan … is working,” the president said.
Biden highlighted legislative accomplishments during his tenure, including the pandemic-related economic stimulus package passed in 2021, the infrastructure spending bill, a bill aimed at boosting computer chip production, and the climate package, of health and tax of last year.
Biden also announced a new “Invest in America” Cabinet made up of the secretaries of commerce, labor, transportation, treasury, energy, and health and human services; the EPA administrator; and senior White House advisers. Biden is tasking them with instituting his economic plans.
Biden’s speech comes a week after the US government hit its legal debt limit. The Treasury Department said it began resorting to “extraordinary measures” to pay the bills. Treasury Secretary Janet Yellen said those special financial tools to meet the country’s obligations can continue until at least June 5, creating a deadline for Congress to act to avoid a default.
Republicans are demanding spending cuts in exchange for lifting the debt ceiling and avoiding US debt default. Republican leaders, however, have not presented a unified party plan to cut spending.
sahil kapur Y alan smith contributed.
