One Political Plaza - Home of politics
Home Active Topics Newest Pictures Search Login Register
Main
The 'Inflation Reduction Act' Won't Actually Reduce Inflation
Aug 1, 2022 16:47:08   #
AuntiE Loc: 45th Least Free State
 
https://reason.com/2022/08/01/the-inflation-reduction-act-wont-actually-reduce-inflation/?utm_medium=email

The 'Inflation Reduction Act' Won't Actually Reduce Inflation

But it will hike taxes, including on Americans earning less than $200,000 annually.

Eric Boehm8.1.2022 11:40 AM
Complicated pieces of legislation rarely live up to the glitzy names scrawled across the first page. But even by that familiar standard, the Inflation Reduction Act of 2022 is going to disappoint anyone excited by its title.

The bill, introduced last week after a long-awaited deal was struck between Senate Majority Leader Chuck Schumer (D–N.Y.) and moderate Sen. Joe Manchin (D–W.Va.), was pitched as a way to lower costs for consumers while also reducing the federal budget deficit and spending billions on environmental initiatives meant to combat c*****e c****e.

It didn't take long for a problem to present itself.

"The impact on inflation is statistically indistinguishable from zero," concluded the Penn Wharton Budget Model (PWBM), a number-crunching policy center based at the University of Pennsylvania. In fact, if the bill's passage had any impact on inflation in the short term, it would be to increase it very slightly until 2024, according to the group's preliminary analysis, released on Friday.

Other parts of the Inflation Reduction Act would do what Manchin and Schumer claim. According to the PWBM report, the bill would reduce future deficits by a cumulative $247 billion over the next decade and would marginally reduce the national debt as a result. It would spend about $370 billion on new environmental and climate initiatives. It would pay for all that by raising taxes and by boosting IRS enforcement, in hopes of chasing down revenue that currently goes unpaid.

But again, the Inflation Reduction Act won't actually reduce inflation.

The Schumer-Manchin deal also appears to violate President Joe Biden's oft-repeated promise not to raise taxes on households earning less than $400,000 annually.

According to the Joint Committee on Taxation (JCT), a nonpartisan agency within Congress, the Inflation Reduction Act would hike taxes by about $54 billion next year. More than $16 billion of that total would come from households making less than $200,000 and another $14 billion from households earning between $200,000 and $500,000. (The JCT's brackets don't cut off at the $400,000 level used by Biden.)


Meanwhile, other provisions in the Inflation Reduction Act would sit uncomfortably beside Congress' other major initiatives this year. Just last week, the Senate v**ed to hand $66 billion in new subsidies to computer chip manufacturers as part of an overall effort to boost domestic manufacturing of high-end electronics. But the corporate tax increases included in the Inflation Reduction Act would fall most heavily on the manufacturing sector, according to the JCT.

As a result, senator v****g for both bills would effectively be v****g to hike taxes on the very industries they just v**ed to subsidize. So much for improving American manufacturers' competitiveness!


Source: Joint Committee on Taxation
Passing contradictory and counterproductive pieces of legislation would be nothing new for Congress, of course. So the biggest political problem for the Inflation Reduction Act remains the disconnect between the bill's premise and the impact (or lack thereof) that it would have on inflation.

Manchin is certainly trying to sell it. "This is all about fighting inflation," the senator said during an appearance yesterday on ABC's The Week. "Inflation is just absolutely destroying families across West Virginia and across America."

Manchin's right that Americans are struggling to deal with high costs. But it's not clear how raising their taxes will help with that.





Reply
Aug 1, 2022 16:57:34   #
Parky60 Loc: People's Republic of Illinois
 
AuntiE wrote:
https://reason.com/2022/08/01/the-inflation-reduction-act-wont-actually-reduce-inflation/?utm_medium=email

The 'Inflation Reduction Act' Won't Actually Reduce Inflation

But it will hike taxes, including on Americans earning less than $200,000 annually.

Eric Boehm8.1.2022 11:40 AM
Complicated pieces of legislation rarely live up to the glitzy names scrawled across the first page. But even by that familiar standard, the Inflation Reduction Act of 2022 is going to disappoint anyone excited by its title.

The bill, introduced last week after a long-awaited deal was struck between Senate Majority Leader Chuck Schumer (D–N.Y.) and moderate Sen. Joe Manchin (D–W.Va.), was pitched as a way to lower costs for consumers while also reducing the federal budget deficit and spending billions on environmental initiatives meant to combat c*****e c****e.

It didn't take long for a problem to present itself.

"The impact on inflation is statistically indistinguishable from zero," concluded the Penn Wharton Budget Model (PWBM), a number-crunching policy center based at the University of Pennsylvania. In fact, if the bill's passage had any impact on inflation in the short term, it would be to increase it very slightly until 2024, according to the group's preliminary analysis, released on Friday.

Other parts of the Inflation Reduction Act would do what Manchin and Schumer claim. According to the PWBM report, the bill would reduce future deficits by a cumulative $247 billion over the next decade and would marginally reduce the national debt as a result. It would spend about $370 billion on new environmental and climate initiatives. It would pay for all that by raising taxes and by boosting IRS enforcement, in hopes of chasing down revenue that currently goes unpaid.

But again, the Inflation Reduction Act won't actually reduce inflation.

The Schumer-Manchin deal also appears to violate President Joe Biden's oft-repeated promise not to raise taxes on households earning less than $400,000 annually.

According to the Joint Committee on Taxation (JCT), a nonpartisan agency within Congress, the Inflation Reduction Act would hike taxes by about $54 billion next year. More than $16 billion of that total would come from households making less than $200,000 and another $14 billion from households earning between $200,000 and $500,000. (The JCT's brackets don't cut off at the $400,000 level used by Biden.)


Meanwhile, other provisions in the Inflation Reduction Act would sit uncomfortably beside Congress' other major initiatives this year. Just last week, the Senate v**ed to hand $66 billion in new subsidies to computer chip manufacturers as part of an overall effort to boost domestic manufacturing of high-end electronics. But the corporate tax increases included in the Inflation Reduction Act would fall most heavily on the manufacturing sector, according to the JCT.

As a result, senator v****g for both bills would effectively be v****g to hike taxes on the very industries they just v**ed to subsidize. So much for improving American manufacturers' competitiveness!


Source: Joint Committee on Taxation
Passing contradictory and counterproductive pieces of legislation would be nothing new for Congress, of course. So the biggest political problem for the Inflation Reduction Act remains the disconnect between the bill's premise and the impact (or lack thereof) that it would have on inflation.

Manchin is certainly trying to sell it. "This is all about fighting inflation," the senator said during an appearance yesterday on ABC's The Week. "Inflation is just absolutely destroying families across West Virginia and across America."

Manchin's right that Americans are struggling to deal with high costs. But it's not clear how raising their taxes will help with that.
https://reason.com/2022/08/01/the-inflation-reduct... (show quote)

They never tell you that fine detail that although your tax rate percent isn't going up, your actual tax in dollars is because your income has gone up. That's why Biden can say with a straight face that he won't raise taxes for the middle class because he hasn't changed the rate. THAT is just one way of many ways how the Democraps lie to you.

Reply
Aug 1, 2022 17:34:04   #
JR-57 Loc: South Carolina
 
AuntiE wrote:
https://reason.com/2022/08/01/the-inflation-reduction-act-wont-actually-reduce-inflation/?utm_medium=email

The 'Inflation Reduction Act' Won't Actually Reduce Inflation

But it will hike taxes, including on Americans earning less than $200,000 annually.

Eric Boehm8.1.2022 11:40 AM
Complicated pieces of legislation rarely live up to the glitzy names scrawled across the first page. But even by that familiar standard, the Inflation Reduction Act of 2022 is going to disappoint anyone excited by its title.

The bill, introduced last week after a long-awaited deal was struck between Senate Majority Leader Chuck Schumer (D–N.Y.) and moderate Sen. Joe Manchin (D–W.Va.), was pitched as a way to lower costs for consumers while also reducing the federal budget deficit and spending billions on environmental initiatives meant to combat c*****e c****e.

It didn't take long for a problem to present itself.

"The impact on inflation is statistically indistinguishable from zero," concluded the Penn Wharton Budget Model (PWBM), a number-crunching policy center based at the University of Pennsylvania. In fact, if the bill's passage had any impact on inflation in the short term, it would be to increase it very slightly until 2024, according to the group's preliminary analysis, released on Friday.

Other parts of the Inflation Reduction Act would do what Manchin and Schumer claim. According to the PWBM report, the bill would reduce future deficits by a cumulative $247 billion over the next decade and would marginally reduce the national debt as a result. It would spend about $370 billion on new environmental and climate initiatives. It would pay for all that by raising taxes and by boosting IRS enforcement, in hopes of chasing down revenue that currently goes unpaid.

But again, the Inflation Reduction Act won't actually reduce inflation.

The Schumer-Manchin deal also appears to violate President Joe Biden's oft-repeated promise not to raise taxes on households earning less than $400,000 annually.

According to the Joint Committee on Taxation (JCT), a nonpartisan agency within Congress, the Inflation Reduction Act would hike taxes by about $54 billion next year. More than $16 billion of that total would come from households making less than $200,000 and another $14 billion from households earning between $200,000 and $500,000. (The JCT's brackets don't cut off at the $400,000 level used by Biden.)


Meanwhile, other provisions in the Inflation Reduction Act would sit uncomfortably beside Congress' other major initiatives this year. Just last week, the Senate v**ed to hand $66 billion in new subsidies to computer chip manufacturers as part of an overall effort to boost domestic manufacturing of high-end electronics. But the corporate tax increases included in the Inflation Reduction Act would fall most heavily on the manufacturing sector, according to the JCT.

As a result, senator v****g for both bills would effectively be v****g to hike taxes on the very industries they just v**ed to subsidize. So much for improving American manufacturers' competitiveness!


Source: Joint Committee on Taxation
Passing contradictory and counterproductive pieces of legislation would be nothing new for Congress, of course. So the biggest political problem for the Inflation Reduction Act remains the disconnect between the bill's premise and the impact (or lack thereof) that it would have on inflation.

Manchin is certainly trying to sell it. "This is all about fighting inflation," the senator said during an appearance yesterday on ABC's The Week. "Inflation is just absolutely destroying families across West Virginia and across America."

Manchin's right that Americans are struggling to deal with high costs. But it's not clear how raising their taxes will help with that.
https://reason.com/2022/08/01/the-inflation-reduct... (show quote)

“Achievers must not be penalized or parasites rewarded if we aspire to a healthy, productive, and ethical society.”
William E. Simon

Reply
 
 
Aug 1, 2022 17:39:38   #
AuntiE Loc: 45th Least Free State
 
JR-57 wrote:
“Achievers must not be penalized or parasites rewarded if we aspire to a healthy, productive, and ethical society.”
William E. Simon



Reply
Aug 2, 2022 08:32:40   #
Justice101
 
AuntiE wrote:
https://reason.com/2022/08/01/the-inflation-reduction-act-wont-actually-reduce-inflation/?utm_medium=email

The 'Inflation Reduction Act' Won't Actually Reduce Inflation

But it will hike taxes, including on Americans earning less than $200,000 annually.

Eric Boehm8.1.2022 11:40 AM
Complicated pieces of legislation rarely live up to the glitzy names scrawled across the first page. But even by that familiar standard, the Inflation Reduction Act of 2022 is going to disappoint anyone excited by its title.

The bill, introduced last week after a long-awaited deal was struck between Senate Majority Leader Chuck Schumer (D–N.Y.) and moderate Sen. Joe Manchin (D–W.Va.), was pitched as a way to lower costs for consumers while also reducing the federal budget deficit and spending billions on environmental initiatives meant to combat c*****e c****e.

It didn't take long for a problem to present itself.

"The impact on inflation is statistically indistinguishable from zero," concluded the Penn Wharton Budget Model (PWBM), a number-crunching policy center based at the University of Pennsylvania. In fact, if the bill's passage had any impact on inflation in the short term, it would be to increase it very slightly until 2024, according to the group's preliminary analysis, released on Friday.

Other parts of the Inflation Reduction Act would do what Manchin and Schumer claim. According to the PWBM report, the bill would reduce future deficits by a cumulative $247 billion over the next decade and would marginally reduce the national debt as a result. It would spend about $370 billion on new environmental and climate initiatives. It would pay for all that by raising taxes and by boosting IRS enforcement, in hopes of chasing down revenue that currently goes unpaid.

But again, the Inflation Reduction Act won't actually reduce inflation.

The Schumer-Manchin deal also appears to violate President Joe Biden's oft-repeated promise not to raise taxes on households earning less than $400,000 annually.

According to the Joint Committee on Taxation (JCT), a nonpartisan agency within Congress, the Inflation Reduction Act would hike taxes by about $54 billion next year. More than $16 billion of that total would come from households making less than $200,000 and another $14 billion from households earning between $200,000 and $500,000. (The JCT's brackets don't cut off at the $400,000 level used by Biden.)


Meanwhile, other provisions in the Inflation Reduction Act would sit uncomfortably beside Congress' other major initiatives this year. Just last week, the Senate v**ed to hand $66 billion in new subsidies to computer chip manufacturers as part of an overall effort to boost domestic manufacturing of high-end electronics. But the corporate tax increases included in the Inflation Reduction Act would fall most heavily on the manufacturing sector, according to the JCT.

As a result, senator v****g for both bills would effectively be v****g to hike taxes on the very industries they just v**ed to subsidize. So much for improving American manufacturers' competitiveness!


Source: Joint Committee on Taxation
Passing contradictory and counterproductive pieces of legislation would be nothing new for Congress, of course. So the biggest political problem for the Inflation Reduction Act remains the disconnect between the bill's premise and the impact (or lack thereof) that it would have on inflation.

Manchin is certainly trying to sell it. "This is all about fighting inflation," the senator said during an appearance yesterday on ABC's The Week. "Inflation is just absolutely destroying families across West Virginia and across America."

Manchin's right that Americans are struggling to deal with high costs. But it's not clear how raising their taxes will help with that.
https://reason.com/2022/08/01/the-inflation-reduct... (show quote)


It appears that the Senate Parliamentarian has her work cut out for her. We'll see how much she disallows or if the bill can pass at all under reconciliation. Then, there is Kyrsten Sinema- in the catbird seat, wielding the power role of spoiler (we hope).

Reply
If you want to reply, then register here. Registration is free and your account is created instantly, so you can post right away.
Main
OnePoliticalPlaza.com - Forum
Copyright 2012-2024 IDF International Technologies, Inc.