What’s in a bill’s name? By bill, I mean a piece of legislation that passes through the US Congress and is eventually signed into law by the US president. On August 16, 2022, US President Joe Biden signed into law the “Inflation Reduction Act.” I use quotation marks because this bill has nothing to do with inflation reduction and everything to do with deceiving the American people (and making Republicans look bad for not voting for it). How does it do that, you may ask? Well, in this article, I will examine the president’s most recent Op-ed examination of the merits of the bill. Tell me if you see how this so-called “inflation” bill reduces inflation.
What Is Inflation?
To those unfamiliar with the concept of inflation, here is a quick definition: things cost more. Food costs more, gas costs more, living in general costs more. Inflation is caused by two main things: the devaluation of money (money with lesser value buys fewer things) and supply and demand. If demand goes up and this cannot be met with supply, the cost of the merchandise goes up. So, what caused the current inflation? Two things. 1.) American Rescue Plan Act of 2021 dumped more money into the economy (devalued the currency) and 2.) the extended lock down of the US economy (supply and demand). Both causes are directly tied to President Biden and his Democratic party. They caused the current crisis.
Never Let a Serious Crisis Go to Waste
You never want a serious crisis to go to waste. And what I mean by that is an opportunity to do things that you think you could not do before. –Rahm Emanuel, Nov. 19, 2008
The current Democratic party took Emanuel’s words to heart, as they created a crisis that they then used to push a bill that in no way addresses it. Want proof?
The Congressional Budget Office, the Committee for a Responsible Federal Budget and the Penn Wharton Budget Model all found that the legislation will have a negligible effect on inflation. (Roston, E., & Eckhouse, B. (2022, August 15). US inflation reduction act is a climate bill by another name. Bloomberg.com. Retrieved August 16, 2022, from https://www.bloomberg.com/news/articles/2022-08-15/us-inflation-reduction-act-is-a-climate-bill-by-another-name) [emphasis mine]
Did you read that? The legislation “will have a negligible effect on inflation.” How can a bill titled the “Inflation Reduction Act” have a negligible effect on inflation? It’s a mystery, right? Wrong!
Apologia Pro Biden
Moreover, let’s see what defense President Biden gives for the existence of this negligible “Inflation Reduction Act.”
Today, I signed the Inflation Reduction Act into law — one of the most significant laws in recent history. With this law, the American people won and special interests lost. The Inflation Reduction Act does so many things that so many of us have fought to make happen for years and years.
Does it reduce inflation?
There are three things everyone should know about the Inflation Reduction Act. First, we are lowering costs for working families.
I hope one of those things shows how this bill reduces inflation…
We are giving Medicare the power to negotiate for lower prescription drug prices. Seniors will pay less for their prescription drugs. The law caps their prescription drug out-of-pocket costs at $2,000 a year — no matter how many prescriptions they have. The big drug companies spent nearly $100 million to beat this law. We prevailed.
Okay, lower prescription drug costs for seniors are good, but how does this effect inflation? Ah, it does not…
The Inflation Reduction Act locks in place lower health care premiums for millions of families who get coverage under the Affordable Care Act. Thirteen million people will see average savings of $800 a year, in addition to the $2,400 in savings through the American Rescue Plan that I signed into law last year.
You mean the afore mentioned American Rescue Plan that pumped trillions of new dollars into the US economy and devalued our currency? That one? And $800 a year for thirteen million people is not addressing inflation.
The law takes the most aggressive action ever in confronting the climate crisis and strengthening our energy security. It will offer working families thousands of dollars in savings by providing them rebates to buy new and efficient appliances and weatherize their homes, and tax credits for heat pumps and rooftop solar. It gives consumers a tax credit to buy an electric vehicle or fuel cell vehicle — new or used — up to $7,500 if that vehicle was made in America.
Hmmm… rebates for new appliances, weatherization, heat pumps, and solar panels… Oh, and a $7,500 tax credit for an electric vehicle. Is this a joke? According to electrek.com, the average cost of an electric vehicle is $66,000. Do you have $66,000 to spend on an electric car and then waiting until tax season to claim a $7,500 tax credit? I don’t, nor do most Americans. I guess it is a joke.
It also provides tax credits that will create thousands of good-paying, clean energy manufacturing jobs on solar projects, wind projects, clean hydrogen projects and carbon-capture projects across the country.
Jobs are good. Clean energy is good, too. But how does this address inflation? Oh, wait… it doesn’t.
Every single Republican voted against lower prescription drug prices, against lower health care costs and against a fairer tax system. Every single Republican voted against tackling the climate crisis, against lowering energy costs and against creating good-paying jobs.
Here we go…no, every Republican voted against an “Inflation Reduction Act” that does not reduce inflation. Democrats dressed a climate and tax bill as an “inflation” bill to fool the American people. Why? Because Americans are reeling from high inflation and they took advantage of the crisis. Speaking of taxes…
Democrats voted to cut the deficit to fight inflation by having the wealthy and big corporations pay their fair share. Every single Republican opposed requiring big corporations to pay a minimum tax of 15%, instead of getting away with paying zero dollars in federal income taxes.
Ah, the old “fair share” line. Who does he think pays most of the taxes? Please see the graph below for the answer (click on the link for a clearer image). How exactly will he ensure the wealthy pay more? By increasing the IRS by 82,000 agents, of course. Seems like a bit of an overkill, if you ask me, as there are not that many extremely rich tax evaders. Mark my words, these new agents will soon tire of going after the very rich and will come for the rest of us…
From the American Rescue Plan to the Bipartisan Infrastructure Law, to the gun safety law, to the burn pits law for veterans, to the CHIPS and Science law, to the Inflation Reduction Act, we are delivering progress and prosperity for American families. We are proving that America and American democracy works. Not just for the privileged few, but for all of us.
Do you feel amidst “prosperity?” Inflation is at a forty-year high. Our money buys less and there is less to buy. Nothing in the “Inflation Reduction Act” reduces inflation. It is a smoke screen for Democrat pet causes. The “Inflation Reduction Act” is a Trojan horse for Leftist policies. Let’s not let them forget we are not fooled come November and 2024. I am sure by then, the “Inflation Reduction Act” will still have done nothing to curb inflation. But to those currently in power, that is not the point. “Never let a serious crisis go to waste…” Not even the ones you create yourself.
Who Pays the Most Taxes?