Senate Inflation Reduction Act Doesn’t Seem Much About Inflation Reduction

I’m having a tough time finding any article that shows that the Manchin/Schumer Inflation Reduction Act will reduce inflation, at least in the next 2-4 years. Meaning, it will pretty much not reduce inflation ever

unintended consequences(NTU) A closer look at the timing of the new spending and tax cuts in the bill (versus the timing of reduced spending and revenue increases) suggests that the bill won’t reduce inflation in the next few years because, on net, the Inflation Reduction Act may spend more than it saves in some of the early years. Any front-loaded deficits will increase interest payments on the national debt. As a rule of thumb based on CBO data, each $100 million increase in spending in 2023 will add $27 million to debt interest costs over the decade.

Only in FY 2027 do deficits start to decrease substantially, likely well beyond the immediate period of elevated inflation based on CBO estimates and consumer expectations. (FY 2022 is almost over, so it is likely that the IRA has no practical effects on government spending or revenues in FY 2022.)

We still do not have actual legislation for anyone to go for, just lots of talking points, press release, which lead to lost of fanboying over….oh right, this is really all about the climate crisis scam, almost everything else is a distraction

‘Absolutely historic’: Senate budget deal would be biggest climate change action ever

The Inflation Reduction Act, as the newly renamed budget reconciliation bill is known, could help reduce consumer prices on goods. If it passes, however, it will undoubtedly have an even bigger impact on climate change.

“Could.” How? This article spends no time explaining how. And, if it is all about inflation reduction, shouldn’t it, and the legislation, tell us how it will bring down prices, not that it “could”?

The major climate components of the bill, which has yet to win final approval in the House or Senate, include tax incentives for wind, solar, hydrogen and nuclear power. There will be $20 billion in loans for electric vehicle manufacturing and $30 billion in tax credits to boost the manufacturing of solar panels and wind turbines and the mining of minerals used in electric vehicle batteries.

Electric car manufacturers and consumers looking to save money at the pump would be big winners. The bill would add a new $4,000 tax credit for buying electric vehicles to the existing $7,500, though it would be limited to trucks, vans and SUVs that retail for less $80,000, cars below $55,000 and only families with adjusted gross incomes below $300,000 per year.

So, basically, it’s hooking up the rich upper middle class folks to get them to buy EVs, even though they can easily afford one without any tax credits. As for nuclear, you know there will be zero movement on this, and Democrats at the federal and state level will work to block any attempts to build nuclear plants

There are also major investments in climate justice, which means ensuring that low-income communities are not disproportionately harmed by the effects of climate change and that clean-energy economy opportunities are fairly distributed. The bill would spend $3 billion for climate justice block grants and $3 billion to reduce air pollution at the nation’s ports. It would also establish the Greenhouse Gas Reduction Fund, a $27 billion bank that would distribute funds to nonprofits and state and local governments to help reduce their carbon footprints by advancing rooftop solar, for example, or switching to a clean-vehicle fleet.

So, mostly a slush fund for Democrat voting groups, though, you can bet that screwing around with ports will increase the price of consumer goods that come in through the port. So, what else is in it other than the climate crazy in what they’ve been told will be a 725 page piece of legislation?

What’s in, and out, of Democrats’ inflation-fighting package

Launching a long-sought goal, the bill would allow the Medicare program to negotiate prescription drug prices with pharmaceutical companies, saving the federal government some $288 billion over the 10-year budget window.

Remember when Democrats refused to work with Trump to do this?

The bill would extend the subsidies provided during the COVID-19 pandemic to help some Americans who buy health insurance on their own.

Under earlier pandemic relief, the extra help was set to expire this year. But the bill would allow the assistance to keep going for three more years, lowering insurance premiums for people who are purchasing their own health care policies.

Which will keep health insurance and care prices up. And, that’s it, besides the climate scam garbage and tax increases that won’t work. How does any of this reduce inflation? Anyone?

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One Response to “Senate Inflation Reduction Act Doesn’t Seem Much About Inflation Reduction”

  1. alanstorm says:

    If it passes, however, it will undoubtedly have an absolutely no impact on climate change.

    I could see some editing was needed.

    The hubris would be more entertaining if someone else was going to be paying the price.

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