A top Republican lawmaker said this week, the Inflation Reduction Act would provide more fuel to the “inflation fire.”
This week, Rep. Smith (R-MO), a House Budget Committee top member, published a fact sheet outlining how the Inflation Reduction Act makes use of budget gimmicks and phony sunsets to hide Manchin’s true cost of deficit reduction legislation.
For example, the Inflation Reduction Act would provide extended enhanced Obamacare subsidies for 3 years, and it would be $64 billion; But, if the program were made available for a ten-year period, it would then cost $248 billion.
The bill would also establish $369 billion in energy security-related initiatives and climate change. If the two-year sunsets are eliminated, the House Budget Committee Republicans discovered that the legislation would cost more than $400 billion.
The bill would also provide $80 billion in funding to allow the IRS to conduct more audits of Americans’ taxes.
When Smith took into account Manchin’s phony budget ploys and ad hoc offsets, he calculated that this bill would generate $114 billion in new debt.
The bill, in his view, would only exacerbate the difficulties faced by the American middle class and manufacturing sector while the nation is in recession.
The Missouri conservative explained:
“The Dems are at it again, employing budget gimmicks and artificial sunset provisions to create phony savings on a piece of paper — just as it was done in the $5 trillion BBB legislation that cleared the House last year. In reality, the recent inflationary reconciliation legislation will cost $728 billion and produce $114 billion in new debt. It will pour more gasoline on the fire of inflation while also adding billions of dollars in fresh taxes that will burden middle-class families and American manufacturers. You have to ask a basic question: how will this help lower costs?”
Many of the tax hikes and offsets in the legislation, he said, are “gimmicks”:
Before 2025, under 2% of the prescription drug cost control “savings” will be received.
If delayed, the Trump-era Rebate Rule that did not ever go into effect, the bill would generate $122 billion in “fictitious savings.”
The CBO said that it would not evaluate the possibility of greater IRS audits resulting in savings.
The 15% corporate minimum tax in the bill is a “failed and tried 1980s tax policy” that was reversed by Democrats.