Why the Inflation Reduction Act Won’t Actually Reduce U.S. Inflation

Regardless of how you feel about these changes, none of them will do anything to reduce inflation in the United States

Why the Inflation Reduction Act Won’t Actually Reduce U.S. Inflation

Andrew Miller with The Trumpet reports:

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When he was campaigning for the United States’ presidency, Joe Biden told supporters in New Hampshire, “I guarantee you we’re going to end fossil fuels.” His administration is preparing to keep this promise using one of the most egregious examples of doublespeak ever. On August 7, Senate Democrats passed the Inflation Reduction Act in a 51-to-50 vote. The bill now awaits passage by the House of Representatives. Despite its name, this bill does nothing to reduce inflation.

Instead, the Inflation Reduction Act will likely increase near-term inflation as it seeks to combat climate change. Time magazine contributor Justin Worland hailed this bill as “the most significant climate legislation in U.S. history” and noted that it will probably put “the country within reach of the Biden administration’s goal of slashing emissions in half by 2030 when compared to 2005 levels.” How will this legislation accomplish this? By spending more than $360 billion on energy and climate change programs over the next decade, including enormous tax incentives to buy electric vehicles.

The Inflation Reduction Act will also extend Obamacare subsidies that were supposed to expire this year, fund drought relief, impose a 15 percent corporate minimum tax rate for companies with higher than $1 billion of annual financial statement income, and empower the Internal Revenue Service to hire 87,000 more agents. Regardless of how you feel about these changes, none of them will do anything to reduce inflation in the United States.