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Tennessee TN-7 Victory Exposes Democrat ‘Affordability’ Deception: Jim Pfaff Reveals the Hidden Inflation

Tennessee TN-7 Victory Exposes Democrat ‘Affordability’ Deception: Jim Pfaff Reveals the Hidden Inflation Tax

Published: December 3, 2025
Program: 2 Guys 1 Coup
Analysis: Conservative Caucus President Jim Pfaff

Topics Covered

Tennessee 7th District: Republican Matt Van Epps Defeats Afton Bane

Republican Matt Van Epps defeated Democrat Afton Bane by nearly 10 points in the Tennessee 7th District special election—a race held in the challenging window between Thanksgiving and Christmas when Republican turnout typically suffers.

While some pundits focused on how “close” the race was compared to Trump’s 22-point margin in the district, Jim Pfaff offered crucial context that changes the narrative entirely:

“When you consider this being December 2nd, in between Thanksgiving and Christmas, what this says is that there is energy in the Democrat Party—they hate Donald Trump. But you didn’t get energy from independent voters. Most of whom probably didn’t show up. And then Republicans did show up because Republicans got off their butts and worked an election for once.”

— Jim Pfaff, President, The Conservative Caucus

Pfaff noted that Afton Bane represents the new face of the Democrat Party in the post-Kamala era—what Tim Burchett called “AOC of the South, except AOC is likable.” This is the type of radical candidate Democrats will continue running nationwide.

The Democrat ‘Affordability’ Messaging Deception

Democrats have seized on “affordability” as their new messaging weapon—while conveniently ignoring that their policies created the affordability crisis in the first place. Pfaff exposed why they use “affordability” instead of “inflation”:

“If they called it inflation, they would egg that on Donald Trump. The fact is, if they called it inflation… it got high and stayed steady at this level because it got high because of Joe Biden, and they don’t want to admit that the affordability problem is theirs.”

— Jim Pfaff

The disconnect is staggering: In New Jersey, voters cited affordability as their top concern—highest tax rates and energy costs in the country—yet still voted for Democrats, the very party that created those conditions.

Milton Friedman and the Hidden Inflation Tax

Pfaff drew on Milton Friedman’s economic principles to explain how Americans are actually taxed far more than their tax returns show:

The Hidden Tax Equation

  • Your Nominal Tax Rate: What you see on your tax return (~21% for middle class)
  • Federal Reserve Money Printing: ~$7 trillion printed during Biden era
  • Your Effective Tax Rate: Closer to 35-40% when including inflation tax

“There’s no such thing as an unbalanced budget. Those deficits are funded with money printing at the Federal Reserve. You pay for it in inflation.” — Milton Friedman, as explained by Jim Pfaff

Americans work until well into May before they start earning money for themselves when you factor in all taxes—and that’s before accounting for the invisible inflation tax.

Fair Tax vs. Flat Tax: Breaking the Corrupt System

The discussion turned to fundamental tax reform. Pfaff, who was a staffer on Capitol Hill for eight years, explained why the Fair Tax (national sales tax replacing income tax) remains politically impossible despite being vastly superior:

“The Fair Tax, as well as getting rid of the Federal Reserve, suffers from a challenge of messaging in a way the American people can understand how truly corrupt and rancid the system is. Because the current tax system and the Federal Reserve feed the beast, and it’s a huge beast that’s very hard to kill.”

— Jim Pfaff

Two key advantages of the Fair Tax that threaten the political class:

  1. It’s progressive — Wealthy people pay more because their spending is greater
  2. It limits Congressional power — No more tax code manipulation to reward donors and punish enemies

The flat tax, while preferable to the current system, has a fatal flaw: Congress would inevitably add exceptions and carve-outs, returning us to the mess we have now.

Republican Ground Game vs. Consultant-Driven Campaigns

Pfaff offered a blistering critique of how Republican campaigns are typically run—and why the Tennessee victory bucked that trend:

“The biggest problem with Republicans in elections is the consultant class centered around all the vendors who provide external things that go into campaigns—media buys, automated calls, direct mail. This is what runs Republican campaigns. You don’t go win a campaign unless you do work on the ground.”

— Jim Pfaff

Republicans won TN-7 because they actually worked the ground game. When polls showed the race within the margin of error, it energized both bases—but Republicans actually showed up and did the work.

Marjorie Taylor Green’s Retirement: What It Reveals

Pfaff offered a candid assessment of Marjorie Taylor Green’s January 5th retirement—a date that ensures she qualifies for her congressional pension after exactly five years of service:

“I appreciate her voting record—it was pretty darn good. But what emphasized my frustration is the date she chose to retire. January 5th is when she’s going to retire. She will have been a member of Congress for almost exactly five years.”

— Jim Pfaff

Congressional Pension Rules

  • Vesting Period: 5 years of service
  • Pension Formula: 2.5% per year of service x average of top 3 years’ salary
  • Congressional Salary: $174,500
  • Her Pension: ~15% of salary annually for life

Pfaff’s broader point: “If you’re trying to bash against the system, then don’t take the pension.”

2026 Midterm Outlook: Republicans’ Race to Lose

Looking ahead to the 2026 midterms, Pfaff sees positive indicators but warned Republicans must deliver results:

Positive Economic Indicators

  • Gas Prices: Lower than they’ve been in four years
  • January 1st: No tax on tips, no tax on Social Security takes effect
  • Black Friday: Record-setting consumer spending
  • Q2-Q3 2025: Scott Bessent projects record income growth

Pfaff’s prescription for Republican success:

  1. Get back on the DOGE train — Members need to urge OMB to send rescissions
  2. Pass massive tax revisions — Reduce the burden on American families
  3. Communicate the inflation tax — Help voters understand their true tax burden

“This is Republicans’ race to lose. If Republicans urgently went and just slashed so much of this government in significant ways that people could understand, that’s going to be a big help.”

— Jim Pfaff

Key Takeaways

  1. TN-7 was a solid win — 10 points in a December special election shows Republican energy
  2. “Affordability” is a deflection — Democrats avoid saying “inflation” because they caused it
  3. Your real tax rate is hidden — Federal Reserve money printing is a tax you don’t see
  4. The Fair Tax threatens the political class — Which is exactly why it can’t pass
  5. Ground game wins elections — Not consultant-driven media buys
  6. 2026 is Republicans’ to lose — Economic tailwinds are coming, but they must deliver

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About The Conservative Caucus:
The Conservative Caucus is a grassroots public policy action organization, formed in 1974. Headed by President Jim Pfaff, the Caucus is committed to advancing free enterprise, limited government, and traditional values.

Related Topics: Tennessee TN-7 | Special Election | Matt Van Epps | Afton Bane | Inflation Tax | Fair Tax | Milton Friedman | 2026 Midterms | Republican Ground Game | DOGE | Government Spending

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Help fellow Americans understand the Democrat “affordability” deception and what’s really driving the inflation tax.

Originally broadcast December 3, 2025 on 2 Guys 1 Constitution.

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