The incredibly misnamed Inflation Reduction Act of 2022 not only does little if anything to address skyrocketing prices, but it may cost tens of thousands of Americans their livelihood as the nation reels through recession.
After torpedoing President Joe Biden’s extravagant Build Back Better, Sen. Joe Manchin emerged from months of top-secret negotiations with a deal that still involves new taxation.
And even Democrats are having a difficult time finding anything concrete in the measure that will help the nation’s white-hot inflation cool down.
The Tax Foundation is a nonpartisan advocacy group that works for lower taxes for Americans. In its just-released findings, figures show that as many as 30,000 full-time jobs could fall away due to the Democrat’s tax-and-spend plan.
The increase in corporate taxes is what the Tax Foundation said will cost jobs. Tens of thousands of them.
Further, analysis shows that the bill constraints productivity and thus may increase prices. Actual inflation reduction is highly unlikely.
The deal for climate spending and tax increases is not yet a sure thing, though Democrats are bending themselves into pretzels to get Sen. Kyrsten Sinema’s (D-AZ) approval. Manchin’s cave-in still only gives them 49 Senate votes, and the Arizona centrist is mum.
Wow, even for Manchin this is breathtaking dishonesty. When manufacturers deduct the cost of new equipment/investment/expansion these are not “loopholes” but incentives prior Congresses passed to keep jobs in AMERICA. Manchin’s bill PUNISHES Made in USA, rewards Made in CHINA. https://t.co/eWkq5t23M5
— Stephen Miller (@StephenM) July 31, 2022
The bill’s supporters — all Democrats — claim it will raise $739 billion over the next decade and bring about a $300 billion deficit reduction. The revenue increase is glaringly obvious, but not so much for the deficit reduction.
Increases will come from a new 15% minimum corporate tax, which despite Manchin’s insistence, is a tax increase. More money to Washington comes from a loophole closure to tax private equity and hedge fund managers. It also allows Medicare to negotiate prescription drug costs.
Again, the revenue increase is clear, and revenue for the federal government is just another word for tax.
That money is earmarked for programs that theoretically fight climate change and lower drug prices. Backers also say it will reduce the nation’s staggering debt, though the percentage of debt to be shaved off is at best miniscule.