At the eleventh hour, Democrats are scrambling to rush through a slimmed-down version of their reconciliation package from last year, this time apparently with key Sen. Joe Manchin (D-WV) on board. Unfortunately, the so-called Inflation Reduction Act (IRA) is full of recycled bad tax policy ideas that are unlikely to have any impact on inflation whatsoever — as nonpartisan studies have already found.
The bill is framed as combating inflation because it is likely to be scored by the Congressional Budget Office as reducing deficits, which in a vacuum would indeed be a good way to address inflation. The problem is the way it tries to do that.
Read Full Article »
