Calling It Inflation Reduction Act Is Euphemism, False Advertising

The Inflation Reduction Actbears the fingerprints Democratic Senators. Chuck Schumer from New York and Joe Manchin from West Virginia.

Their 725-page monster deceit belies its billing, starting with its fraudulent title. Americans are still reeling under the weight of this monstrosity. 9.1%  year-over-year inflation, the Inflation Reduction Act  neglects the worst price surge since November 1981.

The Penn Wharton Budget Model mocks Democratic inflation-reduction claims. “The Act would very slightly increase inflation until 2024 and decrease inflation thereafter,” University of Pennsylvania economists reckon. “These point estimates are statistically indistinguishable from zero, thereby indicating low confidence that the legislation will have any impact on inflation.”

The Inflation Reduction Act would increase government spending to combat inflation. That’s like battling alcoholism with just one more round of drinks.

According to the Committee for a Responsible Federal Budget (CFRFB), the Inflation Reduction Act would pour $485 billion of high-octane moonshine atop today’s inflationary inferno. This includes:

•$1.5 billion to plant trees.

•$9 billion to help rich people buy electric cars.

•$60 billion for “environmental justice.”
•$64 billion to expand and extend Obamacare subsidies.

•$300 billion in corporate welfare for solar and wind. projects, green batteries, carbon capture and more.

The Inflation Reduction Act also raises taxes to $470 billion. $213 billion in corporate levies. This is dumb in boom times but idiotic in a recession, in which America is mired after two consecutive quarters of economic contraction, Team Biden’s contradictory linguistic gymnastics notwithstanding.

Among them:

•A new 15% corporate minimum tax.

•A curbed carried-interest provision.

•A boost in taxes on crude oil and imported petroleum.

The Inflation Reduction Act could also be used to break President Joe Biden’s solemn pledgeNot to increase taxes on individuals earning less than $400,000 annually. The Congressional Joint Economic Committee calculates that Americans earning $200,000 or less would pay at least $30.2 billion in new taxes through 2031—$16.7 billion next year. For those with less than $10,000, there is an aggregate tax hike of $323 millions that will begin in 2023.

Let’s go, Brandon!

The nonprofit Tax Foundation previews the bill’s potential devastation:
“Using the Tax Foundation’s General Equilibrium Model, we estimate that the Inflation Reduction Act would reduce long-run economic output by about 0.1 percent and eliminate about 30,000 full-time equivalent jobs in the United States. It would also decrease the average wage. after-tax incomes for taxpayers across every income quintile over the long run.”

The foundation added: “By reducing long-run economic growth, this bill may actually worsen inflation by constraining the productive capacity of the economy.”

The Inflation Reduction Act also would pump $124 billion into tax enforcement, including $80 billion to double the Internal Revenue Service’s headcount. Last year, only 10% of IRS phone calls were answered. This mess was largely ignored by the IRS. 87,000 new inspectors would instead investigate, audit and litigate the returns not only of Mark Zuckerberg and Elon Musk, but also you and yours.

Why? Because that’s where the money is.

Citing the Joint Economic Committee, The Wall Street Journal editorialized on Wednesday: “… from 78% to 90% of the money raised from underreported income would likely come from those making less than $200,000 a year. Only 4% to 9% would come from those making more than $500,000.”

Even worse, the Inflation Reduction Act’s “most damaging component by far remains its impact on health,” argues University of Chicago economics professor Tomas Philipson.

The bill would give Medicare the power to set drug prices. Impertinent pharmaceutical firms could charge more, but this would trigger a tax up to 95%. This would stop lifesaving innovation.

Consequently, Philipson writes in Newsweek, “Over the next 17 years, the bill would reduce drug industry research and development by about $663 billion, resulting in 135 fewer new medicines. This will result in a loss of 330 million life-years, about 30 times the loss from COVID-19 so far.”

In other words, the Inflation Reduction Act would leave Americans homeless, poor, sick, and even dead.

Nauseated? If so, please ring the U.S. Capitol switchboard at 202-224-3121. Tell your senators to tell other lawmakers to deflate Inflation Reduction Act

This turns the “Let’s pressure Sen. Kyrsten Sinema” strategy into a full-court press on all senators, not just the Arizona Democrat.

It’s a long shot, but we’ll do what we can.

When America goes full commie, and you and I get shipped to the reeducation camps, at least we can tell people that we tried to stop this from happening.

The Daily Signal offers a variety perspectives. Nothing here should be taken to mean that The Heritage Foundation views are represented.


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