Inflation Reduction Act: Biden’s Most Deleterious Law
TL/DR –
The Inflation Reduction Act of 2022, signed by President Joe Biden, is considered as a significant law despite criticisms of its ineffectiveness in reducing inflation and the deficit, and funneling large sums to a limited number of firms and “special interests”. The Act devotes the largest portion of its nearly $400 billion estimated environmental spending to tax credits for green corporations. However, the government’s cost estimates for the Act were significantly underestimated and revenue generation is yet to materialize, leading to skepticism about its effectiveness.
The Inflation Reduction Act: A Windfall for Green Corporations and Special Interests
The Act’s Promises and Reality
Upon signing the Inflation Reduction Act (IRA) on August 16, 2022, President Joe Biden hailed it as a monumental win for the American people and a blow to special interests. However, the reality paints a different picture. Over half of the IRA’s estimated $400 billion in environmental spending went to tax credits for select green corporations. Despite being presented as a tool to reform the economy, reduce inflation, and shrink the deficit, the IRA has proven to be ineffective at anything but inflating the deficit. Learn more about the IRA here.
A Patchwork of Contradictory Ideas
The IRA was a hasty amalgamation of often conflicting ideas. Despite its promises of economic reform, the act authorized huge amounts of subsidized financing for green corporations and environmentalist groups, often after extensive lobbying. These funds were funneled to a limited number of well-connected firms and special interests, rather than benefiting the broader American public. The supposed new revenue generated by the law mostly failed to materialize, with many projects getting stuck in bureaucratic limbo.
The Build Back Better Plan: A Prelude to the IRA
The Build Back Better plan was the initial proposal from the White House in response to the economic fallout from the pandemic. The ambitious plan aimed to fulfill nearly every progressive dream of recent decades, from creating a
—
Read More US Economic News