The “Inflation Reduction Act” is a piece of legislation that Democrats call a fix, but Republicans and a prominent Democrat argue that it will not solve the economic difficulties that Americans confront every day, notably inflation.
Medicare will have the option to negotiate prescription pricing with pharmaceutical firms, as stated by the Democrats, but this provision will not take effect for four years, and only ten drugs will be covered at that time.
The measure also contains numerous efforts to invest in “domestic energy production” while supporting “clean energy solutions” such as climate protection investments.
Included are growth plans for the Internal Revenue Service and the Affordable Care Act, two glaring omissions from Biden’s Build Back Better Plan.
In a letter, 230 economists stated that the so-called Inflation Reduction Act will not in any way cut inflation.
Fox News announced:
The economists wrote in the letter first obtained by Fox News Digital that the U.S. economy is at a “dangerous crossroads” and the “inaptly named ‘Inflation Reduction Act of 2022’ would do nothing of the sort and instead would perpetuate the same fiscal policy errors that have helped precipitate the current troubling economic climate.” …
The economic experts point to the $433 billion in proposed government spending, which they argue “would create immediate inflationary pressures by boosting demand, while the supply-side tax hikes would constrain supply by discouraging investment and draining the private sector of much-needed resources.”
They also note that the corporate minimum tax is “of particular concern” since it will hinder efforts to rebuild working supply networks.
“Nobel laureate Vernon Smith, former Chair of the Council of Economic Advisers Kevin Hassett, former Director of the Office of Management and Budget Jim Miller and Robert Heller, former president of the Federal Reserve Board 1986-1989,” were among those who signed the letter.
Senate Minority Leader and Kentucky Senator Mitch McConnell stated, “are misreading the American people’s outrage as a mandate for yet another reckless taxing and spending spree.”
He said that the Democrats “have already robbed American families once through inflation and now their solution is to rob American families yet a second time.”
New York Senator and Senate Majority Leader Charles Schumer had a different opinion.
“The time is now to move forward with a big, bold package for the American people,” he stated. “This historic bill will reduce inflation, lower costs, fight climate change. It’s time to move this nation forward.”
Given the contrasts between liberal and conservative perspectives on financial concerns, it is not surprising that these two political leaders hold divergent positions.
However, it was unexpected to hear a highly liberal Democrat express opposition to the bill under consideration.
More on this story via The Republic Brief:
Senator Bernie Sanders chastised both Republicans and Democrats for arguing about the act instead of coming together on legislation that would address the needs of all Americans, and really fix the problems that America faces.
“The American people are tired. They are hurting and they are begging their elected officials to respond to their needs,” Sanders said.
“The wages for the average American worker are lower today than they were 49 years ago, and clearly, the inflation of today is pushing the average person even further behind,” the senator said. CONTINUE READING…