US corporations are directly causing much of the inflation we're seeing by simply raising prices — and they're successfully dodging the blame.
It's time to protect consumers and stop corporate profiteering.
COVID-19 supply chain issues and war in Ukraine are the two most common explanations for inflation today. Both are most likely contributing to inflation1 — but that's not the main part of the story.
Corporate profits are at a 70-year high.2 Corporations are taking advantage of background inflation to jack up prices even further, and consumers are totally at their mercy. Progressive champions have introduced legislation to protect US consumers from corporate greed, and Congress must pass it ASAP!
Sign the petition: Pass the Ending Corporate Greed Act, legislation that would impose a 95 percent tax rate on the excess profits of large corporations that earn more than $500 million a year!
Tyson Foods, one of the Big Four conglomerates that controls around 85% of the meat market, is just one example of a corporation taking advantage of existing inflation to extract astronomical profits. Explaining recent price hikes, the Tyson CEO stated the company is "asking (consumers) to pay for inflation."3
But, as Senator Warren pointed out at a Senate Banking, Housing, and Urban Affairs Committee hearing, Tyson has nearly doubled its profit margin over the year. It's clear that inflation is a convenient cover story for corporate greed.
US corporations have a long history of capitalizing on global catastrophes to manufacture crises for consumers — notably during the First and Second World Wars, and during the Korean War. In all three cases, Congress stood up for consumers by passing a tax on corporations' excess profits in times of crisis. Congress must do the same thing now.
Congress needs to protect consumers by taxing corporations on their excess profits — reducing prices for American consumers, and raising revenue to fund social services.
Sign the petition: Congress must protect consumers by taxing corporations on their unethical excess profits!
Sources:
1. NPR, "Economist explains record corporate profits despite rising inflation," February 18, 2022.
2. Prospect, "Time to Tax Excessive Corporate Profits," April 18, 2022.
3. Sen. Elizabeth Warren, "At Hearing, Warren Calls Out Corporations for Abusing Their Market Power to Raise Consumer Prices and Boost Profits," February 17, 2022.