CNBC anchor Andrew Ross Sorkin confronted Transportation Secretary Pete Buttigieg about the administration’s plans to tackle inflation during Monday’s “Squawk Box.”
Sorkin raised the issue of the administration’s plans to raise corporate taxes in light of President Joe Biden’s Friday tweet. urging that “the richest corporations pay their fair share” to reduce inflation. The host then pressed Buttigieg, arguing that corporate taxes and inflation are two separate issues for the most part.
“Yes, in the immediate term, it may have some impact on inflation,” Sorkin began. “But corporate taxes are a long-term problem, or you do it because you think it’s the right thing to do or the wrong thing to do, not because you’re trying to deal with inflation right now.”
“A lot of that is what you’re going to do with the revenue and again, we have an agenda to use tax revenue on things that are going to ease inflationary pressures,” Buttigieg responded. “But also, we have a very clear contrast right now. He has Republican bills in the Senate that deal with raising taxes on the poor and the middle class and he has the President’s worldview, which is shared by most Americans, that if anyone needs to carry more of the burden right now, he is the richest. corporations that have become extremely profitable…
“That’s not how you’re going to solve inflation,” Sorkin chimed in. (RELATED: CNBC Host Confronts Pete Buttigieg on Supply Chain Drawbacks, ‘High Taxes’ on the Middle Class)
“Wait, this is very important. Corporations that have invoked inflation as an excuse to keep prices high in ways that are not only reflected in the supply picture and are pocketing the difference,” the secretary continued.
Billionaire Jeff Bezos has debunked Biden’s calls to raise corporate taxes, calling the “misdirection” of tax rates and inflation “misguidance.”
“The newly created Board of Disinformation should review this tweet, or they may need to form a new Non Sequitur Board instead,” Bezos said. “It’s okay to discuss raising taxes on corporations. Taming inflation is essential to discuss. Smashing them together is just misdirection.”
The newly created Board of Disinformation should review this tweet, or perhaps they need to form a new Non Sequitur Board instead. Increasing taxes on companies is fine to discuss. Taming inflation is essential to discuss. Mixing them together is just a misdirection. https://t.co/ye4XiNNc2v
—Jeff Bezos (@JeffBezos) May 14, 2022
Inflation reached its fastest rise since December 1981 after rising 8.5% in March. The price of fuel hit a new all-time high of $4.37 a gallon on Tuesday.