A new public opinion poll has been released, measuring the most important issues facing the country today. Not surprisingly, inflation and the economy are voters’ top concerns. According to the Harvard CAPS Harris poll, inflation and affordability is the number one issue, followed closely by the economy and jobs.
For Democrats, the poll confirms their strategy to focus on affordability. They have been buoyed by the surprise victory of Zohran Mamdani in the New York City mayor race, who ran on a platform focusing on affordability issues. His agenda included substantial tax increases on New York City residents and businesses, rent control, public groceries, and free buses.
So far, Democrats in Washington have not spelled out a specific affordability agenda. Since they cannot campaign on rent control and free buses, their agenda will most likely include higher taxes and more government spending.
If that is the case, their affordability agenda will make the economy less affordable. Increasing individual and corporate tax rates, which they have been trying to do for years, will not make a typical family’s life more affordable. Higher taxes and more spending will mean lower wages, higher prices, and less savings.
Virtually every economic expert now agrees that raising the corporate tax rate would hurt workers in the form of lower wages. A Federal Reserve Board study found that a higher corporate rate would be “uniformly harmful to workers,” and cost a typical American household thousands of dollars a year.
In addition, studies show that a substantial portion of a corporate tax rate increase would be passed on to consumers in the form of higher prices, making family budgets less affordable. Also, a corporate rate hike would hurt stock market values, hitting 401Ks and reducing retirement savings for millions of families.
High taxes and more spending are not the solution to the affordability problem. The best solution is to focus on growth, with lower taxes and less spending. Increased growth will lead to more production, more goods and services, higher wages, and better jobs. In the 1980s, President Reagan cut taxes and spending and produced a major economic boom, with strong growth and falling inflation, and a higher standard of living for all Americans. That’s what Washington should be focusing on to address affordability.
Washington Should Make Growth the Driver of Affordability
December 18, 2025
Comment
Show comments
Hide Comments
