Natural State News

Arkansas Rep. French Hill is concerned about the spending bill proposed by Democrats to help stimulate the economy and help those in need of assistance get through the pandemic.

When discussing the spending bill with Maria Bartiromo on Fox Business, Hill, a Republican, pointed to what was included in the spending bill more than what it would cost.

“Of course, I do not believe we need to spend $5.5 trillion on the Green New Deal and new social spending priorities of the Democrats, on top of the $4.5 trillion that we spend every year,” Hill told Bartiromo on Oct. 19. “But when you look at what’s in the bill, it’s concerning."

“It’s the policies accompanied in trillions in new taxes that I think is not the right approach,” Hill said.

Meanwhile, an Oct. 20 Fox Business article predicted rising inflation would lead to consumers paying higher taxes. Many state tax brackets fail to account for inflation, it said, and rising inflation causes many people to see their tax bracket rise in a way that does not correlate with their real income. This is referred to as "bracket creep."

The Tax Foundation stated that 15 states do not account for inflation when creating tax brackets, and 18 do not index personal exemption tax to inflation, Fox Business reported.

"The absence or insufficiency of cost-of-living adjustments in many state tax codes is always an issue, as it constitutes an unlegislated tax increase every year, cutting into wage growth and reducing the return on investment," Jared Walczak, vice president of state projects for the Tax Foundation wrote, according to Fox Business. "During a period of higher inflation, however, the impact is particularly significant."

Inflation is expected to continue deep into 2022, Fox Business said.

An opinion piece published in the Wall Street Journal by James Freeman pointed to retail data and how it relates to inflation. "Retail sales report suggests that perhaps Washington’s recent binge of debt-fueled federal spending and Federal Reserve money creation should have stopped several trillion ago," it said.