Inflation Act Repeal Could Slash $160B from US GDP
TL/DR –
A repeal of the Inflation Reduction Act this year could cause around 790,000 job losses in 2030 and reduce the US GDP by over $160 billion, according to recent predictions. The most affected states would be Republican-controlled regions like Texas, Georgia, Florida, and Pennsylvania, excluding California; Texas could see an average increase of $370 per year in household energy bills by 2035 due to less investment in renewables and more dependence on fossil fuels. However, a full repeal is not anticipated, with strategies likely focusing on limiting the act by reducing staffing in key Treasury and Energy department positions.
US Economy at Risk due to Full Repeal of Inflation Reduction Act
The US economy could face significant damage from a complete repeal of the Inflation Reduction Act this year, causing about 790,000 job losses by 2030 and shrinking the GDP by over $160 billion, according to new projections released.
Major Republican-led states like Texas, Georgia, Florida, and Pennsylvania, excluding California, are expected to suffer the most, suggests data from Energy Innovation. In Texas, for instance, annual household energy bills could hike by an average of $370 by 2035 due to falling investment in renewables and increasing reliance on fossil fuels.
Analysts, however, do not anticipate a total repeal. Even Republican House Speaker Mike Johnson describes his strategy for the IRA as “between a scalpel and a sledgehammer.” Steps like reducing staffing in crucial Treasury and Energy department positions could severely limit it.
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