Our friends at the Foundation for Government Accountability analyzed the so-called “Inflation Reduction Act” that passed the U.S. Senate and House in recent days.
According to the FGA: “Inflation is at a 40-year high, gross domestic product (GDP) has been shrinking for two straight quarters, the stock market has tumbled, and labor force participation is hovering around a 45-year low. Despite the poor economic outlook under the leadership of President Joe Biden, congressional Democrats have advanced legislation that would take an even bigger bite out of Americans’ pocketbooks.
“The so-called “Inflation Reduction Act” under consideration in Congress would not only fail to tame inflation, but it would actually increase reckless spending and raise taxes on hardworking Americans. As a result, consumers would pay more—to the IRS and on everyday goods and services.”
The report identifies key concerns regarding the so-called “Inflation Reduction Act”:
- Inflation under Joe Biden and a Democrat-controlled Congress has plunged the economy into a recession
- The legislation would increase inflation, not reduce it
- The legislation would increase reckless spending
- The legislation would hike taxes on Americans, especially the working and middle classes
“Instead of continuing down the path of reckless spending and higher taxes that will raise costs for Americans rather than taming inflation, Congress should take meaningful steps to actually get its fiscal house in order. For example, Congress should allow the expanded ObamaCare subsidies to expire on time, which are currently costing billions of dollars each year in deficit spending.
“Congress should also consider adopting the REINS Act to curtail costly federal regulations that impose unnecessary restrictions on the American economy and drive up both federal spending and costs for businesses and consumers.
“Americans do not need budget gimmicks, higher taxes, and more spending. Instead, they need Congress to exercise fiscal discipline and avoid making life more costly for consumers.”
Check out the entire report here.