There is an unquestionable inflationary trend underway in the U.S. economy, as Americans are faced with higher prices due to a number of causes, including loose monetary policy put forth by the Federal Reserve (Fed).
Economists anticipate consumers will feel the crunch when the Fed ultimately raises interest rates, which is something U.S. Rep. Barry Moore (R-Enterprise) acknowledges.
However, to offset some of the impact, Moore announced Friday on Alabama Public Television's "Capitol Journal" that he will introduce legislation to suspend the federal income tax for six months.
His hope, he said, was to incentivize an increase in the production of goods through an increase in labor with the hope of achieving a balance of dollars and goods.
"It's a dual approach," Moore said. "Obviously, we have to raise interest rates. We have to be slow, and there will be some pain in that process. But one of the things -- we introduced a bill. I'm having it drafted as you and I sit here and speak today, and I haven't mentioned it to anybody, but it's to allow people to work tax-free for six months. No federal income tax for six months because it is a problem we created with the federal government."
Moore said the federal government only raises about $3.6 trillion per year in federal revenue from income tax, and if working couples earning [$100,000] or less can work six months tax-free, that puts people back into the workforce.
"So as goods increase, as you increase the production of goods, those dollars chasing those goods will counter that inflation," said Moore. "But it will also give the American people more spending money. So that's what we're trying to do. ... [W]e've got to give the American people some relief. We saw this coming. We created this problem. We've got to put people back to work and not create a labor market vacuum where those goods are out there. There are not enough goods. We know we've got transportation issues, supply chain issues. But we want to make sure people go back to work and produce products, so, therefore, we hopefully see the increase in products, the decrease in inflation and [decrease in] printing money. More money circulating in the economy hopefully will offset some of that."
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