Today, Congressman Dan Meuser (PA-09) introduced the Stop Inflationary Spending Act, a bill that would require the Congressional Budget Office to provide a 5-year inflation projection for all bills considered through budget reconciliation.

"Inflation occurs when there are too many dollars chasing too few goods and the price increases Americans are now experiencing is the predictable result of the excessive spending of the Biden Administration agenda. The American people deserve to know the true cost of government spending that increases the size of government and constrains growth in the real economy made up of private sector innovators, entrepreneurs, and hardworking people," said Congressman Meuser. "Inflation is a hidden tax on everyone, and hardworking American families are now feeling squeezed of rising prices at the gas pump and grocery store. When inflation was a significant concern in the 1980s, CBO issued inflationary projections for individual bills. Restoring this practice for reconciliation bills that spend big is a commonsense reform that will curb Washington's out of control spending and hold government accountable to the American people for spending taxpayer dollars and running up the national debt."

BACKGROUND…

Prior to passage of the $1.9 trillion American Rescue Plan, economist Larry Summers, who served as President Clinton's Treasury Secretary and crafted President Obama's stimulus package, warned that the bill was three times larger than the economic shortfall and pointed to serious inflationary risks in a Washington Post op-ed. Consumer prices increased 4.2% in April and 5% in May. Core PCE, the Federal Reserve's preferred inflation measure, increased 3.4% in May, the highest level since 1992.

The Stop Inflationary Spending Act:

• Requires the Congressional Budget Office to project the impact on inflation of any bill being considered under Budget Reconciliation.
• The Congressional Budget Office would provide an estimate of inflation for the first 5 years after enactment of reconciliation legislation.
• In the 1980's, the Congressional Budget Office issued inflationary projections for individual bills, and the SIS Act will bring this practice back.

Watch Congressman Meuser's floor speech on the Stop Inflationary Spending Act here.

Read the full bill text here.

Original source can be found here.