Posing as the “Inflation Reduction Act“, the bill adopted Sunday by the Senate is nothing more than a Trojan horse for more of the same Strategies who created the stagflationary fire consuming the economy in the first place.
The federal government’s zealous commitment to central planning leads to these economic conditions. After time and time again championing these policies after each absolute failure, President Joe Biden is peddling yet again another reckless round of central planning with your family in the sights.
1) Arm the SRI more
The bill provides for $80 billion slush fund for the IRS to raise an army of 87,000 additional agents. The unjustified, unconstitutional and autocratic The FBI’s raid on former President Donald Trump’s Florida home on Monday is laying bare the world to see the true purpose of this provision.
This near doubling of the size of the IRS is presented as simply a way to increase law enforcement activities. In reality, that would mean costly audits for Americans of all backgrounds, additional political targeting, and federal nitpicking on every operation small businesses make.
Currently, 4 out of 5 IRS audits are for those earning between no income and $200,000 a year. Some 51% concern those whose annual income is $75,000 or less.
Which strategy generates the most revenue:
1. Use multiple agents to audit wealthy taxpayers who can hire help.
2. Use automated systems to audit poor taxpayers with limited resources.
— Parker Sheppard (@parkersheppard) August 7, 2022
Far from targeting tax evaders, most IRS audits are of people who can’t afford the legal costs to fight them, which often run into the thousands of dollars.
This is a naked attempt to weaponize the IRS against the American people to advance the agenda of the left and shake them up for anything the bureaucrats can grab.
2) Doubling down on the recession
The Inflation Reduction Act would probably result creating 900,000 fewer jobs, reducing average household income by $1,200 and leading to higher rates of inflation.
With dramatic tax increase falling on workers and job creators, increased regulation, federal market manipulation and rising deficits, how could this bill not hurt the economy?
3) Intensification of inflation
This bill would likely increase federal inflationary deficits by at least $350 billion over the next decade. This would generate $110 billion in underlying deficits and interest charges and $240 billion in economic damage– related deficits and net interest charges, using the rules of thumb of the Congressional Budget Office. These deficits should eventually be repaid either by new taxes or by more inflationary monetary creation by the Federal Reserve.
In the current economic climate, these deficits would lead to even more inflationary pressures. The market would anticipate more over the last two years; namely, the government prints money to quietly impose an inflation tax to fund its endless schemes.
4) Tax hikes for everyone
Despite the absurdity of raising taxes in a recession, that is exactly what this bill would do. Overall, this would raise taxes by $570 billion, or $4,500 per household.
At least $136 billion of those taxes would ultimately fall on low and middle income families. The average middle-income household would see a tax burden of over $2,400 as a result of this bill.
An estimated one-third of revenue increases would come from aggressive IRS auditing activities to pressure low- and middle-income families to settle.
The remaining two-thirds of revenue increases would come from higher business taxes. However, companies cannot pay taxes; they can only redirect loads.
These burdens would be felt through reduced wages and job opportunities, slower economic growth and higher consumer prices. Essentially, the government would take more of your money directly so they can protect themselves from the inflation it has caused.
5) Overseas shipping jobs
The minimum corporate tax included in the bill directly penalize investments made in expanding operations and building new facilities. The share redemption tax would be capital trap with established and less dynamic companies, preventing these funds from being reinvested in innovative and dynamic companies.
6) Assault on US energy production
These destructive effects would be compounded by the onslaught of the US Energy Production Bill.
The bill would increase the fees charged to domestic oil producers on federal lands by about 50%. That would send $369 billion of your money politically connected green industries transfer trillions and trillions of dollars of investment into green mess.
Congressional Democrats claim it would cut greenhouse gas emissions by 40% and save the climate, but with no evidence, just rhetoric.
It wouldn’t accomplish anything environmentally, no matter what you think about global warming. Even if the United States immediately cut 100% of its greenhouse gas emissions overnight, it would result in perhaps 0.2 degrees of global cooling by the end of the century.
And yet policies put in place by the left to reduce greenhouse gas emissions and phase out conventional energy would waste more than $7.7 trillion and almost double gas prices, modeling shows. from The Heritage Foundation. In other words: All pain, no gain. (The Daily Signal is the medium of the Heritage Foundation.)
7) Unaffordable and inaccessible health care
In addition, the bill would ensure that while the government reaches an agreement on drug prices, you won’t. This mandate would do nothing to reduce the real costs associated with the production of drugs. Rather, the costs would be passed on to everyone else through increased drug prices, reduced drug production, and reduced research budgets to produce life-saving new drugs.
In short, the misnamed Inflation Reduction Act strikes at rich and poor similar and would harm all American families. The bill, covered in a thin veneer of cheap political rhetoric, represents a blind commitment to the failed policies we all now suffer from.
There is, however, a good way to reduce inflation; namely, reducing federal regulation, taxation and spending. Reducing government burdens would put Americans in better control of their own money and help the dynamic engines of our economy to thrive again.
This piece originally appeared in The daily signal