The Path to Growth
The recent failures of Signature Bank and Silicon Valley Bank (SVB) have increased the concerns of many over the threat of a deepening international economic crisis. While the failure of major financial institutions is particularly troubling on top of the inflation and supply chain problems of the past two years, we should take time to ensure new policies enacted in response address real problems without harming the majority of local banks across states like Nebraska who are unconnected to the failed banks.
When considering the safety of assets, it is important to remember account holders at Signature and SVB, as well as at every bank and credit union insured through the Federal Deposit Insurance Corporation (FDIC), are guaranteed for a minimum of $250,000 in deposit insurance. While the steps FDIC took to insure deposits above this threshold at SVB may have helped maintain faith in the integrity of our financial system, we should be clear that this was federal funding which came from FDIC premiums paid by financial institutions across the country, just as the coverage for $250,000 in every account.
In the same week the nation learned of these bank failures, the White House released President Biden’s budget for Fiscal Year 2024. The president’s first two years have been marked by massive levels of federal spending, continuous calls for tax increases, and a campaign to vastly increase the influence of the IRS. As predicted by many leading economists, this has been accompanied by ongoing inflation which continues to make it difficult for American families to make ends meet.
According to the Bureau of Labor Statistics, inflation continued in February 2023 at a 6 percent increase over last year’s prices while shelter prices rose 8 percent and food costs rose 9.5 percent. These price hikes continue to outpace gains in wages as inflation bears down like a heavy tax on every American.
Unfortunately, this budget shows the president refuses to turn away from his policy mistakes. With hundreds of billions of dollars devoted to taxpayer-funded loan cancellation, Green New Deal priorities, and far-left programs, this budget piles on more excessive spending and tax increases.
These proposals include another $29 billion for the Internal Revenue Service on top of the $80 billion enacted in the Democrats’ 2022 Inflation Act. Furthermore, last week, in a hearing of the Ways and Means Committee, I confirmed through testimony from Treasury Secretary Janet Yellen 90 percent of audits under this new funding would target individuals making less than $400,000 per year. The Biden administration’s plans to supersize the IRS’ ability to audit Americans in every income bracket is unnecessary and unacceptable.
In a powerful demonstration of the effects of better policy, following the 2017 passage of the Tax Cuts and Jobs Act (TCJA), we grew the economy, grew wages, and grew revenues to the federal government. This shows we can tackle the issue of worsening debt and see businesses and families thrive. Excessive spending got us into a mess; we cannot tax and spend our way out of it.
The president’s budget is a non-starter. Rather than a future that’s built on freedom which Republicans are building through our Commitment to America, the Biden administration has our country heading toward a future that's built on dependency. We cannot give up the fight. We must forge ahead with freedom, opportunity, and fiscal restraint as our guide.
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