The Inflation Reduction Act accomplishes numerous goals.
It raises taxes on nearly everyone, including those with annual incomes of less than $10,000. It provides billions to the wealthy so they can purchase electric vehicles.
It ensures that those who generate energy on government land are subject to higher tax rates as a result. Additionally, it provides health insurance firms with tens of billions of dollars.
Nonetheless, it does not cut inflation. In fact, the University of Pennsylvania estimates it will raise inflation through the year 2024.
According to the Penn Wharton Budget Model staff, the Act would boost inflation until 2024 and then lower it thereafter.
They claim these input forecasts are statistically indistinct from zero, indicating a low sense of certainty the law will have any impact whatsoever on inflation.
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The Inflation Reduction Act of 2022 will be the largest package to fight the climate crisis ever passed by Congress.
— Chuck Schumer (@SenSchumer) July 31, 2022
Why, then, did Senator Joe Manchin choose to call this bill, which is 725 pages long and does not cut inflation, “The Inflation Reduction Act?”
It would appear he is attempting to hide the reality that he capitulated to the demands of activists on the far left in order to get President Joe Biden’s Build Back Better plan passed.
This week, Manchin emphasized to reporters that Build Back Better is dead and instead, they have the ability to strengthen our nation by uniting Americans.
Manchin said he will do all in his power to bring in a new age of cooperation and common sense that will make this country more energy secure, economically sound, and unified for this and future generations.
The Inflation Reduction Act of 2022 will lower health care costs for millions of Americans. And, for the first time in a long time, make the largest corporations pay their fair share without any new taxes on people making under $400,000 a year.
— President Biden (@POTUS) July 31, 2022
This new era of cooperation will not begin very soon. Democrats still intend to pass the Inflation Reduction Act using only their own votes in the Senate’s reconciliation. No Republicans are expected to sign the bill’s huge tax increases.
Sen. Kyrsten Sinema has not yet said if she supports the plan, so Democrats are still unsure whether they will get the support of all 50 of their own members. On Thursday, Senator Dick Durbin came back positive for COVID-19.
Although he is anticipated to return later in the week, Democrats cannot advance the settlement on the floor unless all 50 votes are present in Washington. In contrast to the House, the Senate has never permitted proxy voting.
A week after the Commerce Department verified the economy contracted for the second consecutive quarter, Democrats are making a hazardous bet by proposing to raise taxes on citizens of the United States by a total of $739 billion.
If the economic system continues to decline, Republicans will cite the misnamed “Inflation Reduction Act” as a major cause.
In conclusion, it seems Democrats are hell-bent on making everything easy for Republicans. That is because if this continues, Americans will have no choice but to vote out incompetent Democrats.
This article appeared in NewsHouse and has been published here with permission.