As Prices Rise for Working Families, Trump and Republicans Double Down on Billionaire Tax Breaks

As Prices Rise for Working Families, Trump and Republicans Double Down on Billionaire Tax Breaks

With prices on the rise, dads are feeling squeezed this Father’s Day, while new polling reveals that the vast majority of Americans disapprove of Trump’s handling of both tariffs and lowering prices, voters’ top economic priority. Meanwhile, Congressional Republicans are ignoring the needs of working families and doubling down on a bill that would cut taxes for billionaires and slash basic needs programs for working families.

Groundwork Collaborative’s Chief of Policy & Advocacy Alex Jacquez released the following statement:

“Americans want relief and a stable economy, not a deeply unpopular GOP bill that will raise prices on the middle class and overwhelmingly benefit the wealthy. But that won’t stop President Trump and Congressional Republicans from forging ahead with dangerous policies that are creating chaos and making working families fear what will come next.”

This week in the Trump Slump, new polling and economic indicators continue to show that President Trump’s actions are deeply unpopular and hurting the economy.

Polling:

• Groundwork Collaborative and Data for Progress released new polling that found:
  • 52% of Americans believe Trump is not focused on lowering prices.
  • 57% of Americans believe the tax bill will raise their costs, with only 32% saying it will lower them.
  • A majority of Americans believe Trump’s tariffs will make their personal financial situation worse over the next three months (57%).
  • 61% of Americans believe that President Trump is working more for billionaires and large corporations than families like theirs.
  • 75% of Americans believe the Trump administration should prioritize the interests of small businesses over large corporations, but only 25% believe it currently does.
  • 60% of Americans believe that President Trump’s tariff policies are having a negative impact on small businesses in communities like theirs.
• A Quinnipiac University poll shows that 56% of voters disapprove of Trump’s handling of the economy and only 38% approve of the way Donald Trump is handling his job as president.
  • The data also shows 53% of voters are opposed to the GOP’s budget bill, including 57% of independents.
  • Just 67% of Republicans support the GOP’s budget bill.
• A CBS poll shows 58% of Americans disapprove of Trump’s handling of the economy. It also shows Americans disapprove of the GOP’s tax bill:
  • 60% of voters believe that Republicans’ budget bill will help the wealthy.
  • 75% of voters believe that Trump is trying to help the wealthy with his tariff policy.
• New research from Navigator shows that 63% of Americans believe it is likely that President Trump and Republicans in Congress will cut Medicaid.

Economic Indicators:

• The Bureau of Labor Statistics released the Consumer Price Index for May, showing that prices rose by 2.4% over the past year.
  • Despite Trump vowing to bring the cost of housing down, rent was one of the main drivers of inflation, as the index for shelter rose by 0.3%.
  • Grocery prices are also up, with the index for food increasing by 0.3%.
• The Bureau of Labor Statistics released the Producer Price Index for May, showing that final demand advanced by 0.1 percent last month.
• Despite improvements in June’s preliminary data, consumer sentiment is still down 20% from when President Trump took office. Consumers’ views on personal finances, business conditions, labor markets, and stock markets are also significantly down compared to December 2024.
  • In particular, long-run inflation expectations are at 4.1%. Other than the past three months of the current Trump administration, the last time we saw inflation expectations this high was in 1993.
  • The rebound is likely short lived; economists expect tariffs to bite soon.
• Data from the Department of Labor showed that weekly unemployment claims remained at their highest level in eight months and the amount of Americans applying for unemployment reached its highest level since November 2021 following the COVID-19 pandemic.

Expert Commentary:

• JPMorgan Chase CEO Jamie Dimon expressed his concerns about the U.S. economy: “I think there’s a chance real numbers will deteriorate soon… Employment will come down a little bit. Inflation will go up a little bit. Hopefully, it’s just a little bit.”
• Bob Elliot, CIO at Unlimited Funds, shared a Twitter thread predicting higher inflation later this year: “There are broad signs inflation is picking up across the economy. Despite surveys and timely price measures showing signs of increasing price growth, markets remain complacent. Unless tariffs reverse soon, higher inflation will quickly become a reality.”
• James Egelhof, Chief U.S. Economist at BNP Paribas, said of the Fed’s decision to hold interest rates steady: “High tariffs are here to stay, and they will produce elevated inflation that is sustained well into 2026. The Fed will see little need to cut… The lesson we have from history is, if inflation becomes entrenched in the economy, it can be very hard and very costly to remove.”
• Groundwork’s Executive Director Lindsay Owens reacted to House Republicans’ vote to formalize into law the dangerous cuts pursued by Elon Musk: “The richest man in the world orchestrated a hit and run on our government, and House Republicans are Elon Musk’s accomplices. Musk smashed into our institutions, grabbed the treasure trove of data he wanted, and skipped town. With today’s vote, the GOP ensures the damage he left in his wake is here to stay.Donald Trump’s government is run by and for the billionaires. As working families continue to struggle, Americans know who is to blame.”
• Groundwork’s Senior Advisor for Economic Policy Emily DiVito reacted to the U.S. Senate confirming former Congressman Billy Long as IRS Commissioner: “Today Senate Republicans put an arsonist in charge of the fire department. With Long at the helm of our nation’s tax enforcement agency, the IRS will let wealthy tax cheats off the hook and stiff working families. Long’s dangerous track-record pushing fraudulent tax advice and tilting the tax system toward billionaire tax dodgers is now Trump administration policy. When taxpayers face delayed refunds and long wait times for help at the IRS, they will have Donald Trump and Senate Republicans to blame.”