Given the state of the economy, gas prices, baby formula shortages, inflation across the board and a disruptive two-year pandemic, favorability towards Washington leaders is unsurprisingly low. President Biden and the Democrats’ approval ratings are the lowest for any President in history at just 38%, according to the latest Gallup Poll. This is why, understandably, elected officials want to return home before the midterm elections with some good news to curry favor.
The Inflation Reduction Act was named for this very reason. It includes new spending to extend Affordable Care Act subsidies, which are otherwise set to expire in October just before a large block of voters head to the polls. To help pay for these subsidies, the bill includes new taxes and Medicare prescription drug reform that lawmakers characterize as "savings" for seniors. The problem is it is hugely unpopular to rob Peter to pay Paul, heralding savings for Medicare on one hand, while neglecting the impact of reduced innovation and development for medications on the other. Moreover, it is unfavorable to reallocate Medicare savings to pay for new spending such as the Affordable Care Act subsidies and green energy policies. Regardless of where lawmakers fall on this approach, a majority of voters oppose this spending plan.
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