The Congressional Budget Office has released their report on the Schumer/Manchin so-called ‘Inflation Reduction Act’ bill that passed the Senate this weekend and they say it dose nothing to reduce inflation.
Contradicting claims from Senate Democrats, a report from the independent Congressional Budget Office (CBO) indicates that the measures in the $740 billion Inflation Reduction Act of 2022 (IRA) would have a marginal to negative impact on inflation.
Citing from the Build Back Better Act, a proxy for the IRA, the CBO wrote that the “estimate of the deficit reduction [for the Build Back Better Act] was lowered by $11.0 billion over the 2022-2031 period.” Additionally, as CBO Director Phillip Swagel noted, if the bill passes, then “in calendar year 2023, inflation would probably be between 0.1 percentage point lower and 0.1 percentage point higher under the bill than it would be under current law, CBO estimates.”
The Tax Foundation stated: “The bill worsens inflation, especially in the first two years, as revenue raisers take time to ramp up and the deficit increases. We find that budget deficits would increase from 2023 to 2025, potentially worsening inflation … On balance, the long-run impact on inflation is particularly uncertain but likely close to zero.”
But according to The Associated Press, the IRA, which passed the Senate on Sunday in a 51-50 vote, is being praised as an achievement of President Joe Biden’s vision to control global warming, reduce costs of pharmaceutical drugs, and tax large corporations. The bill now heads to the House.
I’m sure Democrats in the House will now move quickly to kill the bill since the CBO has now rendered a verdict, saying it doesn’t do what it claims to do. Yeah, sure they will.
Seriously though, they should. As desperate sa Democrats are to get something passed, raising taxes on Americans with a bill that doesn’t touch inflation won’t end well for them. As Ed Morrissey wrote this morning:
From @EdMorrissey: "Nothing in this bill will have any downward impact on inflation at all for at least a year…If voters don’t see a change in inflation…they will see through the bill as nothing more than Dems desperately trying to cash out before getting the boot in Nov."
— Pradheep J. Shanker (@Neoavatara) August 8, 2022
This bill was rightly nicknamed a social spending bill because that’s all it is. Democrats are trying to cash out and it won’t help them in November. In fact it may help Republicans even more…