Armstrong Economics Blog/Politics Re-Posted Aug 16, 2022 by Martin Armstrong
Experts have stated that the Inflation Reduction Act will not reduce inflation in any meaningful way. So why is the White House spending $739 billion on this failed act? They have no idea! No Republican voted to pass the act, and the Democrats are yet again spending recklessly without reason.
The Congressional Budget Office analyzed the proposal and found it negligible at best. In fact, the CBO believes inflation could possibly rise in 2023 due to this expensive proposal. Estimates range from the act reducing inflation by 0.1% to increasing it by 0.1%. Furthermore, the Obamacare subsidies will be given to families earning up to $304,000 annually who do not need government handouts. The CBO also found that the 15% corporate tax minimum within the proposal will hurt businesses and prevent them from expanding.
“When you look at your next paycheck, remember that the Democrats voted to spend $740,000,000,000 of your hard-earned money to double the size of the IRS and to pay for their reckless tax & spending spree,” Senator Thom Tillis tweeted. So why is the White House expected to pass this legislation?
ABC News anchor Jonathan Karl questioned clueless White House Press Secretary Karine Jean-Pierre. “But let me ask you, it’s called the ‘Inflation Reduction Act,’ but the Congressional Budget Office, which is nonpartisan, said that there would be a negligible impact on inflation this year and barely impact inflation at all next year, isn’t it almost Orwellian?” Karl asked. “How can you call it inflation reduction when the nonpartisan experts say it’s not gonna bring inflation down?”
Jean-Pierre did not have an answer. She simply stated that the proposal is “making sure that billions in corporate America are paying their fair share.” We know from data that the IRS will target everyone and has historically gone after lower-income Americans. Another Democrat-backed reckless spending bill that taxpayers will pay for without ever having the opportunity to cast a vote.