WASHINGTON (NEXSTAR) — Lawmakers want to find out if corporations are taking advantage of Americans and fueling inflation.
Sen. Bernie Sanders (I-Vt.) says big corporations are using the pandemic and war in Ukraine to make money.
“During all this instability, that this be a moment in which large corporations continue to enjoy huge profits,” Sanders said.
During a Senate Budget Committee hearing, Sanders accused companies like Tyson and Amazon, who he said prioritize corporate greed, of causing inflation.
“Corporations are making record-breaking profits and over 700 billionaires in America became nearly $2 trillion wealthier,” Sanders said.
Sen. Sheldon Whitehouse (D-R.I.) says competition usually drives the price of items down, but there isn’t enough in the gas or meat industry.
“Is there something unusual about those two markets that seemingly causes this market theory not to pertain in those markets?” Whitehouse asked.
“A relatively few number of producers who can easily coordinate their production,” UC Berkeley Public Policy Professor Robert Reich answered.
Sanders and Whitehouse believe these corporations deserve a windfall tax for their profiteering, but Republicans say Democrats are pointing the finger at the wrong culprit.
“The best cause for inflation lies in the policy choices of this administration,” Sen. Lindsey Graham (R-S.C.) said.
Graham says higher corporate taxes aren’t a solution.
“If we impose new taxes now on businesses who changed their business model in light of COVID, we’re going to make a huge mistake,” Graham said.
Graham says this issue should be decided by the voters in November.