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Floor Speech

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Mr. GRASSLEY. Madam President, at each of my 99 county meetings and in conversations with Iowans generally, the record cost of living is top of mind as Iowa families feel the impact of 9.1 percent inflation. They feel that on their family budgets, for sure.

Due to rampant inflation spurred by reckless government spending, consumer prices are escalating at a historic pace. Middle-class Americans are paying more for everything from gasoline, food, and shelter, to home furnishings, prescription drugs, and clothing.

Since President Biden took office January 2021, consumer prices have increased, on average, 12 percent nationally. As a result, the average Iowa household has seen its monthly living expenses increase to $670 a month. The rising cost of transportation, energy, and food has hit household budgets particularly hard.

Since January 2021, Americans on average are paying an extra $206 a month on energy, $334 a month on transportation and gas, and an additional $76 a month for food. It is no wonder inflation is the No. 1 concern that I hear about as I tour Iowa's 99 counties.

Rising wages have helped some Iowans manage the rising cost of living. However, for most, rising prices have far outpaced the wage gains. While trying to make up an extra $600 a month is hard enough for wage earners, it is next to impossible for senior citizens who are on fixed incomes. For senior citizens, there is no prospect of getting a raise like you might get if you have a job. They must make do by stretching their Social Security checks, their pensions, or investment income, if they have that. They must count on just stretching that as far as they can.

While there is an annual cost of living adjustment intended to maintain the purchasing power of Social Security benefits, this adjustment lags inflation increases. The 5.9 percent COLA for 2022 was the largest increase since 1982, the last time we had this out-of- control inflation. However, that is far below the 9.1 percent annual inflation rate reported for June. So just like wages go up 5.5, they can't keep up with a 9.1 percent increase inflation.

So you get a 5.9 percent increase in your COLA for Social Security; that is far below the 9.1 percent increase in inflation. Now, the Social Security Administration reports the 2023 COLA will be between 7.3 percent and 10.8 percent. Well, that might help. But will it make up for what inflation is?

Unfortunately, seniors have another 6 months until they see this relief in their benefit payments.

The current turmoil in the stock market has made it even harder for seniors to keep their heads above water. They are seeing their retirement savings in 401(k)s, their IRAs, and their non-tax-advantaged accounts eroded by stock market declines, by inflation, and by taxes.

Seniors are understandably looking to the administration and to this very Congress to take action to address inflation and rising prices. Unfortunately, all the administration and a majority in Congress have offered them are false assurances, more reckless spending, and damaging tax hikes.

It is time that we try an entirely different approach. That approach should be one focused on fiscal prudence, targeted non-inflation inducing relief, and increasing market competition or boosting supply.

The most important thing Congress can do to fight inflation is stop its reckless spending. Even better would be to trim the budget to eliminate unnecessary spending.

As for providing inflation relief, it must be done in a way that won't add to our growing debt or further fuel the flames of inflation. One way to do this is to provide targeted inflation relief that incentivizes and rewards taxpayers who save rather than spend.

This is the approach taken in the Middle-Class Savings and Investment Act, which I introduced last month. Under my legislation, most middle- class savings and investment income would be subject to zero tax. This means middle-class seniors would be subject to no Federal income tax on their long-term capital gains and dividend income. They would also be exempt from Federal tax on up to $600 of interest income that they earn in a year. Exempting most middle-class savings from tax not only provides relief to those seniors and to others but also will reduce tax bias that favors consumption over saving.

While not a silver bullet by any stretch of the imagination to stop inflation, encouraging more consumers to save rather than spend may help reduce inflation pressures by dampening demand.

Importantly, my proposal is fully paid for, so it won't add to our unsustainable debt and deficits.

In addition to practicing fiscal responsibility and providing sensible, targeted relief, I support policies designed to hold down prices by increasing supply and promoting greater competition in the marketplace. A prime example of this is my work to rein in out-of- control prescription drug prices.

Americans--especially our seniors--are paying too much for their prescription drugs. AARP says brand-name drugs that seniors use are going up more than twice the rate of inflation. Recent data indicates that nearly a half million seniors filled a single prescription that met their out-of-pocket threshold and millions of seniors are reaching the catastrophic phase of Part D.

We must act to lower prescription drug prices. I passed out of the Finance Committee a bipartisan and negotiated bill that will lower the cost of prescription drugs. It is called Grassley-Wyden or by its name the ``Prescription Drug Pricing Reduction Act.'' It saves seniors $72 billion and taxpayers $95 billion. It caps out-of-pocket costs at $3,100 and eliminates the doughnut hole. And perhaps the most important part of it will also cap year-over-year price increases of prescription drugs at the CPI. This also ends taxpayer subsidies to Big Pharma and provides real relief to our seniors.

Let's not waste another minute to lower drug prices. I will work with anyone who wants to pass the bipartisan Grassley-Wyden bill.

In addition to prescription drugs, I am leading the charge to lower the cost of grocery bills. The big four meatpackers who have over 85 percent of the market use anticompetitive tactics to hurt smaller producers or independent family farmers. While independent farmers in Iowa are forced to sell livestock at dirt-cheap prices, the cost to the consumer is climbing to a historic high level. This is happening at the same time the big four packers are reaping record profits.

Just this past week, Sysco--the largest food distributor in the United States--filed a lawsuit against these very same big four packers alleging price fixing. Sysco claims that these packers intentionally reduce the number of slaughtered cattle to inflate beef prices that families must pay at the supermarket.

We must maintain a cash market for cattle producers and thus increase competition. Toward this goal, I am spearheading two bipartisan bills that sailed through the Senate Agriculture Committee that would do just that.

Another reason why we are seeing high prices on store shelves is the high price of gasoline and diesel. Contrary to what some people believe, food does not grow on grocery store shelves; food comes to the stores on trucks. And our country has never seen prices at the pump as high as they are right now. In fact, gas prices have doubled since President Biden took office.

Instead of focusing on domestic fuel production, the President and his administration have caved to environmentalists in shaping our energy policies. Since energy is an input in every item on the store shelves, energy prices mean climbing prices at the cash register at Hy- Vee in Des Moines, IA, or Walmart anyplace in the country and every other store.

It is time to reverse course on President Biden's energy policies and pursue an ``all of the above'' strategy. Let's go back to being energy independent rather than energy dependent.

Instead of just talking about inflation and its impact on Iowa families and seniors, it is time for this Congress to stop reckless spending and start focusing on commonsense relief and reforms. I am leading the charge to do just that through targeted tax relief--the savings bill that I talked about; market reforms in key industries to hold down prices, like the cattle bill I was talking about; and by boosting the supply of fuel to keep prices at the pump in check. I urge my colleagues on both sides of the aisle to join me in these efforts.

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