Thursday on Fox Business Network’s “Kudlow,” Sen. Chuck Grassley (R-IA) introduced his plan to combat the record-high inflation.
Grassley said that the “terrible inflation” was “hurting the middle class.” He emphasized that his legislation, the Middle Class Savings and Investment Act, would encourage people to be able to save during a time when inflation and gas prices were being felt by everyone.
“I’m hearing at my county meetings that says eight-and-six-tenths percent inflation and the big increases in gas are eating up everybody’s income and diluting their savings, so we’ve got to do more to encourage people to save,” Grassley outlined. “It accomplishes two things — people save, more productivity, and if they don’t spend it, it helps on the demand side. So, what we’re doing is updating legislation that I got passed in 2001 and 2003 with what we called the saver’s credit and the zero for certain tax brackets — zero on interest that they receive and then because of inflation, those dollars to help them lower- and middle-income class. It’s just less value now. We increase those tax brackets so more people can be covered, mostly to compensate for inflation on those tax brackets, and then also we double the credit from $500 to $1,000 and $2,000 … for married couples.”
“Part of the reason I’m doing this is because this terrible inflation that I’m hearing from Iowans hurting the middle class,” he added. “And I think we have to target it now to where the problem is now.”
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