CBO: Inflation Reduction Act Won't Reduce Inflation

[ducks]

Contradicting claims from Senate Democrats, a report from the independent Congressional Budget Office (CBO) indicates that the measures in the $740 billion Inflation Reduction Act of 2022 (IRA) would have a marginal to negative impact on inflation.

Citing from the Build Back Better Act, a proxy for the IRA, the CBO wrote that the "estimate of the deficit reduction [for the Build Back Better Act] was lowered by $11.0 billion over the 2022-2031 period." Additionally, as CBO Director Phillip Swagel noted, if the bill passes, then "in calendar year 2023, inflation would probably be between 0.1 percentage point lower and 0.1 percentage point higher under the bill than it would be under current law, CBO estimates."

The Tax Foundation stated: "The bill worsens inflation, especially in the first two years, as revenue raisers take time to ramp up and the deficit increases. We find that budget deficits would increase from 2023 to 2025, potentially worsening inflation ... On balance, the long-run impact on inflation is particularly uncertain but likely close to zero."


https://taxfoundation.org/inflation-reduction-act/

https://www.cbo.gov/system/files/2022-08/hr5376_IR_Act_8-3-22.pdf

[ElNono]

The Tax Foundation is an American think tank based in Washington, D.C.. Tax Foundation research is generally critical of tax increases, high business taxes, excise taxes, tax preferences for the housing industry, and use of tax credits, which the Foundation views as "picking winners and losers". The Foundation has spoken favorably of efforts to balance the federal budget with tax reform and significant spending cuts, such as the Bowles-Simpson plan, the Ryan Plan, and the Wyden-Coats plan.

The Tax Foundation describes itself as an "independent tax policy research organization". It is cited in the media as a nonpartisan or bipartisan organization, and are also described as business-friendly, conservative, and center-right.

[CosmicCowboy]

The Tax Foundation is an American think tank based in Washington, D.C.. Tax Foundation research is generally critical of tax increases, high business taxes, excise taxes, tax preferences for the housing industry, and use of tax credits, which the Foundation views as "picking winners and losers". The Foundation has spoken favorably of efforts to balance the federal budget with tax reform and significant spending cuts, such as the Bowles-Simpson plan, the Ryan Plan, and the Wyden-Coats plan.

The Tax Foundation describes itself as an "independent tax policy research organization". It is cited in the media as a nonpartisan or bipartisan organization, and are also described as business-friendly, conservative, and center-right.

CBO said the same thing.

[Thread]

Tax & spend. Whoop-dee-doo.

"I'll shut it down." - Biden. No. you won't
"I won't raise taxes." - Biden. Yes, you did.

https://d.newsweek.com/en/full/449548/lavrov-putin.jpg

[ElNono]

CBO said the same thing.

It did not. This is the entire letter:
https://www.cbo.gov/system/files/2022-08/58357-Graham.pdf

Easy to cherry pick the soundbite, but this is what follows that statement:
That range of likely outcomes reflects uncertainty about how various provisions of the bill would affect overall demand and output, the supply of labor, the persistence of disruptions in the supply of goods and services, and how the Federal Reserve would respond to offset any increase in inflationary pressure.

The letter itself can't even say if we're entering a recession (which would bring down any inflationary pressure).

[ducks]

Texas Democrats Rep. Henry Cuellar, Rep. Vicente Gonzalez, and then-Rep. Filemon Vela wrote a letter to House Speaker Nancy Pelosi last year complaining the fee, which was included in the earlier version of the House "Build Back Better" legislation, "unfairly targets oil and gas companies" and that it would hurt the ability for the U.S. to be competitive in the world energy market.

Their is hope that the stupid bill will not pass the house

[ducks]

I believe my math is correct. If not, please tell me. The average IRS agent earns $76,233 a year. Adding another 79,000 employees and $80 billion would double the number of IRS employees and cost taxpayers an additional $6 billion a year, plus great benefits! We must all contact our representative now and tell them to vote NO on this Income Reduction Act.

[ElNono]

Texas Democrats Rep. Henry Cuellar, Rep. Vicente Gonzalez, and then-Rep. Filemon Vela wrote a letter to House Speaker Nancy Pelosi last year complaining the fee, which was included in the earlier version of the House "Build Back Better" legislation, "unfairly targets oil and gas companies" and that it would hurt the ability for the U.S. to be competitive in the world energy market.

Their is hope that the stupid bill will not pass the house

There isn't, tbh

[ducks]

Biden skewered for admitting ‘God knows what else’ is in Inflation Reduction Act

[CosmicCowboy]

electric vehicle tax credits got axed in the new bill

https://www.axios.com/2022/08/10/electric-vehicles-tax-credit-biden

[Th'Pusher]

electric vehicle tax credits got axed in the new bill

https://www.axios.com/2022/08/10/electric-vehicles-tax-credit-biden

Not sure if you read past the headline, but that’s not at all what the article says.

Regardless thanks for posting as it does a good job of spelling out the complicated legislation and why it is the way it is.

The bottom line is there is a lot of uncertainty around the credit and whether or not any vehicles will meet the requirements to get the credit.

[CosmicCowboy]

Not sure if you read past the headline, but that’s not at all what the article says.

Regardless thanks for posting as it does a good job of spelling out the complicated legislation and why it is the way it is.

The bottom line is there is a lot of uncertainty around the credit and whether or not any vehicles will meet the requirements to get the credit.

I read the article, thank you. And since there are no US produced batteries it basically says the credits are axed. Not sure why you want to nit pick the wording.

[Th'Pusher]

I read the article, thank you. And since there are no US produced batteries it basically says the credits are axed. Not sure why you want to nit pick the wording.

Axed implies that they were removed from the bill. Nothing in the bill changed.

[Th'Pusher]

My guess is you were looking to take a little sip off the government teat like you love doing with tax credits and are now upset the US government isn’t going to subsidize your new EV so you came in here sloppily whining about it.

[CosmicCowboy]

My guess is you were looking to take a little sip off the government teat like you love doing with tax credits and are now upset the US government isn’t going to subsidize your new EV so you came in here sloppily whining about it.

You guessed wrong Bozo. And arguing about the word axed is fucking stupid since no credits will be available after the bill is passed because there are no domestically produced batteries and won't be for years.