(NewsNation) – The Federal Reserve reports that US corporate profits jumped 25%, the largest annual increase in nearly 50 years. Some lawmakers accuse companies of using the pandemic and supply chain issues as excuses to raise prices. Now lawmakers can take steps to regulate potential corporate abuses.
Vermont Senator Bernie Sanders is among those saying big business is using the pandemic and the war in Ukraine to make money.
During a Senate Budget Committee hearing, Sanders blamed companies such as Tyson and Amazon, which he said prioritize corporate greed, for causing inflation.
“Companies are making record profits. And over 700 billionaires in America have become nearly $2 trillion richer,” Sanders said.
Rhode Island Sen. Sheldon Whitehouse says competition usually drives down the price of items, but that doesn’t happen in the gas or meat industries.
“There is something unusual about these two markets that makes this market theory apparently not applicable to these markets,” Whitehouse said.
Sanders and Whitehouse think these corporations should pay a windfall tax for their profit. But Republicans say Democrats are pointing the finger at the wrong culprit.
“The best calls for inflation lie in the policy choices of this administration,” said South Carolina Sen. Lindsey Graham.
Graham says higher corporate taxes are not a solution.
“If we now impose new taxes on companies that are changing their business model in light of COVID, we are going to be making a huge mistake,” Graham said.
Graham thinks that issue should be decided by voters in November.