Let’s revisit the blunder that costs more than three times the estimates. Wall Street Journal: The Inflation Reduction Act may go down as one of the greatest confidence tricks on taxpayers in history. Democrats used accounting gimmicks to claim the partisan law would reduce the budget deficit. But now a Goldman Sachs report projects its myriad green subsidies will cost $1.2 trillion—more than three times what the law’s supporters claimed. The Congressional Budget Office forecast that the IRA’s energy and climate provisions would cost $391 billion between 2022 and 2031, but this appears to be a huge under-estimate. One reason is companies are rushing to cash in on tax credits that aren’t capped. The Biden Administration is also loosely interpreting conditions for the credits [Wall Street Journal].
Karine Jean-Pierre says it’s “a good thing” that Penn Wharton revised its estimated cost of the so-called “Inflation Reduction Act” from $385 billion over ten years to more than $1 TRILLION [RNC Research: Twitter].
A new analysis from Penn Wharton shows that not only does the ‘Inflation Reduction Act’ do nothing to address inflation, but the Green New Deal provisions cost almost three times more than original estimates—over $1 trillion [Senator Mike Crapo: Twitter].
The law will allocate $369 billion toward climate and energy policies, extend the Affordable Care Act to reduce the cost of health insurance and incorporate a 15% minimum corporate tax for companies that earn more than $1 billion per year [Fox News].
Why does this matter? With so much deficit spending, its clear that the "Inflation Reduction Act" is named to deceive. So how much damage is it doing?
The U.S. economy cooled in the first quarter amid still-high inflation and rising interest rates, with solid consumer spending propping up growth. U.S. gross domestic product, a measure of the value of all the goods and services produced in the country, rose at an inflation- and seasonally-adjusted 1.1% annual rate from January to March, a slowdown from 2.6% growth in the fourth quarter, the Commerce Department said Thursday [Wall Street Journal].
US economic growth slowed to 1.1% annual rate in the 1st quarter. The vice grip of high inflation and higher interest rates. Consumers have started to cut spending. Manufacturing contracting. In the decade before the pandemic, our economy grew at 2.2% a year [Dagen McDowell: Twitter].
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