Only in Washington, D.C. could someone refer to a $750 billion bill as “anti-inflationary” with a straight face, but that’s exactly what Congress and President Biden are doing as they celebrate the passage of the so-called Inflation Reduction Act (IRA).
CNN has reported that the bill may not live up to its name, and U.S. News and World Report predicts inflation isn’t likely to decline. Researchers at the University of Pennsylvania have even calculated that inflation will actually increase through 2024 and declared they have “low confidence that the legislation will have any impact on inflation.” Nonetheless, Congress is poised to give the IRA to Americans, with some elected officials touting the cost savings the bill will bring to consumers, especially through the credits that will promote electric vehicles and solar panels.
Since the IRA won’t actually reduce inflation, and it won’t deliver savings that most households are interested in receiving, what exactly will the bill do?
The IRA utilizes the tax code to promote an agenda of green energy and climate change programs. In addition to the menu of tax credits and incentives the legislation offers, it also includes a tax increase on carried interest for individuals and a minimum amount of taxation for some of our country’s largest corporations. Maybe the most likely way average Americans will have their taxes impacted, though, is by the $80 billion dollars that will be given to the IRS, $46 billion of which will be devoted to enforcement. For perspective, the annual budget of the IRS is currently just shy of $13 billion. As Robert W. Wood writes for Forbes, “…make no mistake, enforcement is the main directive from Democrats to the IRS. Get bigger, tougher and faster at collecting, and make them pay.”
Check out the ITR Foundation perspective on this dime store version of the Build Back Better plan.
Our friends at the Heritage Foundation have recapped how the misnamed Inflation Reduction Act will adversely affect every American family. They also offer their prescription to slow down inflation:
There is, however, a right way to reduce inflation; namely, cut federal regulation, taxation, and spending. Reducing the burdens of government would allow Americans more control over their own money and would facilitate the dynamic engines of our economy to prosper once more.
President Biden should learn from former President Warren G. Harding and his successor President Calvin Coolidge to correct government failures and allow markets to heal so that we can enjoy abundant economic prosperity again.
When Harding took office in 1921 the nation was emerging from a significant pandemic and was suffering from a severe economic downturn in the aftermath of the Great War. During the campaign the preceding fall, Harding argued that the nation needed to return to sound money, less spending, lower taxes, less debt, and limited government. This was the fiscal policy blueprint of the “normalcy” agenda. Harding understood that to revive business confidence and lower high income tax burdens, the federal government must get its fiscal house in order.
Read the history lesson John presents alongside Vance Ginn in an article that has been picked up by numerous publications across the country.
The growing influence and power of China should be a concern for all policymakers. China is growing more aggressive militarily and they are attempting to control resources across the globe, including the United States. Our massive trade deficit is not the only thing we should be concerned about as China is buying up agricultural land across the United States.
“Unknown to most Americans, the Chinese Communist Party has been buying our farms, land and even our homes for decades. Why? So they can take our food, technology and other resources for themselves,” wrote Senator Tom Cotton (R-AK). Even though some states, such as Iowa, have foreign land ownership restrictions, this does not prevent a foreign power from taking control of various components of food production.
John’s full warning about China’s increasing investments in America discusses a very serious national security threat.
Last week the nation lost a treasure with the passing of David McCullough. David McCullough was America’s historian and he brought history alive through his many books. McCullough was a gifted storyteller both in his writing and his narration of American Experience documentaries such as Ken Burns, The Civil War.
McCullough was a passionate advocate for history education. His books can be read by anyone interested in learning more about our great history. “History isn’t just something that ought to be taught, read, or encouraged only because it will make us better citizens. It will make us a better citizen and it will make us more thoughtful and understanding human beings,” stated McCullough himself.
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