You know your tax-and-spend legislation sucks when even Bernie Sanders is dumping on it.
Saturday night, the Senate debated the “Inflation Reduction Act,” the legislative proposal recently unveiled by Senate Majority Leader Chuck Schumer and swing-vote moderate Joe Manchin with the Biden administration’s support. As I’ve previously explained on BASEDPolitics, the legislation includes a huge tax hike on businesses (aka workers) in order to finance expanded healthcare subsidies and big green energy subsidies and tax credits.
Yet despite its name, the legislation won’t do anything to reduce inflation. Even Bernie is admitting it!
In remarks on the Senate floor Saturday night, Sanders dismissed it as the “so-called Inflation Reduction Act.”
“I say so-called, by the way, because according to the CBO and other economic organizations who have studied this bill, it will in fact have a minimal impact on inflation,” Sanders continued.
It’s rare—incredibly so, actually—that I say it, but Bernie Sanders is right.
As I previously reported:
“A new analysis from researchers at the Wharton School of Business concludes that the ‘Inflation Reduction Act’ wouldn’t reduce inflation at all.
‘The Act would very slightly increase inflation until 2024 and decrease inflation thereafter,’ the Ivy-league analysts report. ‘These point estimates are statistically indistinguishable from zero, thereby indicating low confidence that the legislation will have any impact on inflation.’
The Wharton analysis also notes that the legislation would have zero—yes, zero—impact on economic growth by 2031.”
Why won’t the “Inflation Reduction Act” do anything to, well, reduce inflation?
I explain in-depth here, but the short version is that the bill does nothing to address our reckless monetary policy, which is driving inflation, and the “deficit reduction” it supposedly says will reduce inflation is so minuscule it’s basically a rounding error.
Even Bernie can see this reality.
“The American people are tired of press releases… they are hurting,” Sanders said. “And they are begging their elected officials to respond… [But] this legislation does not address any of their needs.”
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