Despite Manchin’s Spin, the Inflation Reduction Act Will Devastate the Economy

Sen. Joe Manchin (D-WV), Sen. Chuck Schumer (D-NY), and President Joe Biden must think voters are fools.

That’s the only possible explanation for why they thought the “Inflation Reduction Act ” was an appropriate title for a bill that spends hundreds of billions of dollars, raises more in taxes, and hikes the cost of doing business at a time when people are facing record inflation and a recession. Democratic leaders think voters won’t notice their disastrous policies and will forgive them at the ballot box in November. They couldn’t be more wrong.

Calling this warmed-over version of “Build Back Better” the “Inflation Reduction Act” is deceptive. Biden and co. are telling people that more spending and more taxes on manufacturers will somehow equal lower prices. This is wrong on multiple fronts.

First, the spending. The climate provisions, which are pulled from the failed Green New Deal, would spend a staggering $369 billion on so-called green provisions, the largest expense in the bill. Another provision would spend $64 billion on extending COVID-19-era Obamacare subsidies, temporarily shielding Obamacare enrollees from the real cost of rising premiums.

Pumping new spending into the economy is what got us record inflation in the first place. One of the bill’s most egregious tax credits is a good case study: a new $7,500 credit for the purchase of an electric vehicle with a price tag of up to $80,000 for taxpayers making up to $300,000 per year. This will squeeze the already strained supply chain and raise car prices further, making inflation worse. The winners? EV owners, who are overwhelmingly wealthy , and EV manufacturers. The losers? Everyone else in America who is paying higher prices and higher taxes to cover the bill.- READ MORE