What’s this political football call the “Inflation Reduction Act?”
Posted By RichC on August 7, 2022
While discussing the “will it” or “won’t it” Inflation Reduction Act being pushed by Democratic leadership in Washington DC as a way to replace the failed 2021 Build Back Better spending plan by President Biden last week, I figured digging into the details might prove better than spewing left or right talking points. The bill really has less to do with the “name” and more to do with the political philosophy.
Progressively leaning politicians and their supporters see raising taxes on corporations and successful Americans as just and “equitable.” They use the power of the federal government through carrots and sticks as a way to carry out central planning. Democrats who for the most part support big government, raise revenue through taxation to fund their programs and distribute based on what “they” deem appropriate. The fiscal conservative sees smaller government’s role as focused on national defense and creating economic condition for the individual and business to compete successfully (inefficient government vs competitive private businesses). The preference is less taxation and reduced regulation and a smaller federal bureaucracy. When it comes to freedom, more left to the individuals and their local and state governments.
A few areas being addresses are obvious partisan handouts such as climate change spending and more health care subsidies even though the latest bill “removed the carried interest tax provision” and boosted even more for “our clean energy economy.” But in the end, the increase taxes being collected (with 87,000 new IRS employees) and disincentives for businesses without “green” incentives to expand, will result in higher costs on products and services to all citizens. In other words … indirectly we’ll all pay the taxes.
Lastly … will it reduce inflation? Dubious … but perhaps a country (world) heading into recession WILL eventually reduce inflation as we all get poorer. This is no way to run a country or a government.
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