FEDA has joined other trade groups in signing a letter asking Congress and the Biden administration to end efforts to pass the $1.75 trillion Build Back Better reconciliation package. The letter states that congressional leaders should instead focus on the challenges confronting American families and businesses, such as rising prices, labor shortages and supply chain constraints, rather than pushing for a massive spending bill that would increase inflation.
“The Administration argues that the Build Back Better bill will help to reduce prices, but those arguments are simply not credible,” the letter states. “Our members believe the primary causes of the reemergence of inflation are the Federal Reserve’s continued easy money policies, massive amounts of deficit spending by Congress and continued supply constraints, some tied to the Administration’s economic and COVID policies.”
The tax increases that are part of the Build Back Better plan would burden businesses and lead to greater inflation, the letter continues. “Congress needs to make a similar adjustment, beginning by ending efforts to sharply increase federal spending while raising taxes on America’s employers.”
To read the full letter, click here.