According to many economists, the Schumer-Manchin Inflation Act, aka Inflation Reduction Act, won’t do a thing to spare consumers from the rising cost of goods and services, and it could make things worse. It’s another tax and spend bill.
William McBride, vice president of federal tax and economic policy at the Tax Foundation, spoke with The Washington Times.
“The danger is that this would actually slow down the economy,” Mr. McBride told The Washington Times. “And at a terrible time, when it is teetering on a recession. And by slowing down the economy, you actually have a negative impact on the fiscal outlook for the federal government.”
Someone has to pay, he said.
The Penn Wharton Business Model and the nonpartisan Joint Committee on Taxation indicated the legislation would not only fail to curb inflation it would raise taxes on millions of low- and middle-income earners.
The JCT, in a preliminary analysis of the proposal, said 2023 taxes would increase by $16.7 billion for those earning less than $200,000 and $14.1 billion for people earning between $200,000 and $500,000.
Economists say the plan to pay the deficit by $305 billion over ten years will barely dent the government’s red ink or inflation.
According to the Congressional Budget Office, the deficit was $2.8 trillion in 2021 and is expected to grow significantly over the next decade after decreasing in 2022.
Economists also predicted the proposed 15% minimum tax on corporations would hurt manufacturers, kill jobs, reduce pay and ultimately hobble the economy.
Joe Manchin disagrees with Penn Wharton and insisted on the Sunday news shows that it does not raise taxes on anyone.
Yet, Penn Wharton is his go-to model.
— Mike Palicz (@Mike_Palicz) August 1, 2022
It will raise taxes on everyone.
Biden promised no tax hikes if you make less than $400K per year
The “Inflation Reduction Act” raises taxes for everyone making over $30K per year pic.twitter.com/4D4gwsqjdu
— John Hasson (@SonofHas) July 30, 2022
Moodys also says it will do little to curb inflation.
Inflation will be lower at 0.33% in 2031. It will be 5% higher in 2023. The now is all we have, and we are already at 9.1% inflation after the numbers are manipulated lower than they really are.
They claim the negtives are offset by the good coming from climate change and their fairy tale ESG.
CNN: “One from Moody’s Analytics, another one from Penn Wharton, both of which said that [the Bidenflation Scam] would do little to curb inflation.” pic.twitter.com/Fcr2nZpBmA
— RNC Research (@RNCResearch) August 1, 2022