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Karine Jean-Pierre roasted over ‘Orwellian’ tweet touting ‘0% inflation’

President Biden’s top spokesperson was accused of lying on Wednesday in a tweet touting “0% inflation in July” — even as federal data indicated that the consumer price index rose by 8.5% year over year.

“We just received news that our economy had 0% inflation in July,” White House press secretary Karine Jean-Pierre tweeted on Wednesday.

“While the price of some things went up, the price of others, like gas, clothing, and more, dropped.”

Jean-Pierre also hailed the dip in gasoline prices, which she called “the fastest in a decade” which was “saving American families with two cars $106 per month on average.”

In the same tweet thread, Jean-Pierre wrote that “real wages went up for the first time in almost a year.” She also urged the House to pass the Inflation Reduction Act “as soon as possible” in order to “lower health care, prescription drug, and energy costs.”

But Twitter users pushed back against Jean-Pierre’s claims.

White House press secretary Karine Jean-Pierre toed the administration line that the country saw "0% inflation in June."
White House press secretary Karine Jean-Pierre toed the administration line that the country saw “0% inflation in July.”
REUTERS
Twitter users pushed back on Jean-Pierre's tweets on Wednesday.
Twitter users pushed back on Jean-Pierre’s tweets on Wednesday.

“Great. No need for the ‘Inflation Reduction Act’ anymore…” tweeted Yossi Gestetner.

Another Twitter user, Kevin Dalton, posted a link to a news article indicating that inflation was 8.5% in July, writing: “Other than the complete lie you just told, I totally believe you…”

Joel Griffith, a research fellow at the Heritage Foundation, posted a tweet showing the increased prices of key goods.

“Inflation this past year of 8.5% is near a 40-yr high,” he noted.

One Twitter user went so far as to add a “clown face” filter to a clip of Jean-Pierre touting the strength of the economy from the White House press room podium.

The rate of inflation was 8.5% in July -- hovering around record levels not seen in four decades.
The rate of inflation was 8.5% in July — hovering around record levels not seen in four decades.

Supporters of the administration, however, tried to clarify Jean-Pierre’s tweet. One noted that the press secretary meant that “inflation over the last month has been 0%” and that it “hasn’t increased in the past month.”

But another Twitter user responded: “You don’t compare inflation month to month. It is compared year to year. But you wouldn’t know that.”

Last month, Jean-Pierre was widely mocked for claiming that “we are stronger economically than we have been in history.”

Americans continue to be saddled with higher-than-usual food prices.
Americans continue to be saddled with higher-than-usual food prices.
Levine-Roberts/Sipa USA

She cited low unemployment as well as “more than 8.7 million new jobs created” — though critics noted that it was due to the end of pandemic-related lockdown measures and Americans returning en masse to the workforce after the vaccination drive.

The 8.5% rise in inflation last month was lower than the sharp, 9.1% increase in June, but still hovering at a high not seen since four decades ago.

Core inflation, which excludes food and gas prices, rose by 5.9% annually and by 0.3% compared to June.

Analysts said that a drop in demand has led to falling gas and energy prices, though that trend can easily reverse itself given volatile geopolitical conditions, including the ongoing Russian invasion of Ukraine, as well as possible hurricanes in the US.

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Categories
US

87K new agents won’t target middle-income Americans

The head of the Internal Revenue Service said that the tax collecting agency will “absolutely not” use $80 billion in new funding to step up audits of low- and middle-income Americans.

IRS Commissioner Charles Rettig tried to reassure the US Senate in a recent letter about the 87,000 new agents who will be hired as part of the so-called Inflation Reduction Act.

The legislation includes $45.6 billion for “enforcement-related funds”, which makes up more than half of the appropriations.

Nonpartisan tax observers say that most of the funds that the IRS will collect will come from small and medium-size businesses.
Nonpartisan tax observers say that most of the funds that the IRS will collect will come from small and medium-size businesses.
Newsday via Getty Images

“The resources in the reconciliation package will get us back to historical norms in areas of challenge for the agency — large corporate and global high-net-worth taxpayers — as well as new areas like pass-through entities and multinational taxpayers with international tax issues. , where we need sophisticated, specialized teams in place that are able to unpack complex structures and identify noncompliance,” Rettig wrote in the letter.

The letter was first reported by CNBC.

The IRS will likely receive $80 billion in funding after Senate Democrats passed the Inflation Reduction Act over the weekend.
The IRS will likely receive $80 billion in funding after Senate Democrats passed the Inflation Reduction Act over the weekend.
AP

Rettig then added: “These resources are absolutely not about increasing audit scrutiny on small businesses or middle-income Americans.”

He wrote that “our investment of these resources is designed about the Department of the Treasury’s directive that audit rates will not rise relative to recent years for households making under $400,000.”

Last week, the nonpartisan watchdog Joint Committee on Taxation said it anticipates that between 78% and 90% of the estimated $200 billion that the IRS will collect as a result of the bolstered workforce will come from small businesses.

President Biden and the Democratic Party have insisted that Americans earning less than $400,000 annually would not have to pay a cent more in taxes.

But the Joint Committee on Taxation disputes this, saying that between 4% and 9% of the money collected will come from businesses that earn above $500,000 a year.

“The IRS will have to target small and medium businesses because they won’t fight back,” Joe Hinchman, executive vice president at the National Taxpayers Union Foundation, told The Post.

“We’ve seen this play out before … the IRS says ‘We’re going after the rich’ but when you’re trying to raise that much money, the rich can only get you so far.”

Hinchman told The Post that it is easier for the IRS to collect from small- and mid-size businesses since they are less likely to incur legal expenses in order to fight the agency — whereas larger and wealthier companies are much better equipped to do battle.

“The approach here is to double the IRS workforce, take the leash off, and see how much they can collect,” Hinchman adds. “I think they’ll collect it but it will be quite painful.”

Additional reporting by Lydia Moynihan

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US

CNBC’s Rick Santelli reacts to US jobs report

CNBC analyst Rick Santelli was beside himself on Friday as he reacted on the air to the latest federal data showing that American employers added 528,000 new jobs in July — more than double the anticipated number.

“It is a whopper!” Santelli told CNBC’s “Squawk Box” on Friday.

Economists expected that there would be an additional 250,000 jobs in July, prompting Santelli to say: “528,000! 528,000, basically double the expectations! And 528,000 is the best number since February when we were over 700,000, revisions to the last two months are 28,000.”

Maria Bartiromo, the Fox Business news anchor, was similarly stunned when the latest jobs figures were announced on Friday morning.

“Wow, that’s pretty incredible,” Bartiromo, a strident critic of the Biden administration, said live on the air as she was told about the numbers.

While the strong jobs market and the record low levels of unemployment persist, analysts said that it does not necessarily bode well for the Fed’s efforts to bring down sky-high levels of inflation.

The major indexes on Wall Street fell in response to the latest jobs report as investors gird for more aggressive interest rate hikes by the central bank.

“The tinder-box hot job market indicates that the Federal Reserve’s resolve to fight inflation is not bearing fruit yet,” Sung Won Sohn, an economics professor at Loyola Marymount University, told The Post.

Son cited labor shortages in key sectors of the economy including airlines, leisure and hospitality, and restaurants.

“The lethargic labor participation rate shows that workers are not yet worried about a recession and willing to wait for better opportunities,” Sohn said.

"It's a whopper" Santelli said upon learning that the US added 528,000 new jobs in July.
“It is a whopper,” Santelli said upon learning that the US added 528,000 new jobs in July.
Twitter/@SquawkCNBC

“The 5.2% wage gain from a year ago is not enough to entice them to get back to work.”

The Dow Jones Industrial Average was down 0.05% as of 10:23 am on Friday while the S&P 500 fell 0.08%. The Nasdaq shed 0.04%.

“This is a job market that just won’t quit,” Becky Frankiewicz, the president and chief commercial officer for ManpowerGroup, told The Post.

“The economic indicators are signaling caution, yet American employers are signaling confidence.”

Jeffrey Roach, the chief economist for LPL Financial based in Charlotte, told The Post: “The decline in unemployment and the participation rate will frustrate central bankers since a tighter labor market adds inflation risk to the economy.”

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