Letter to the Editor: The latest federal inflation bill lacks basic understanding of economics

Henry Rissier

Reading through the Democrat’s latest attempt to appear proactive, the falsely named Inflation Reduction Act reflects either a frightening lack of understanding how the economy actually works — or worse — a belief that the American citizenry is just stupid enough to buy it.

The claim that the bill will reduce the deficit and thus inflation contains no reductions until 2027. The Penn Wharton Budget Model reports “the impact on inflation is statistically indistinguishable from zero” through 2031.

The $327 billion in new taxes could slow inflation by creating further recession, a scary outcome. Congress’ Joint Committee on Taxation projects that 49.7% of the corporate minimum tax would hit manufacturing, preventing businesses to write off capital investments like new factories. The resultant restrictions in new investments would cause gross domestic product to decline further. Worse, since corporations pass along tax increases, it ultimately falls on workers, shareholders and customers.

Would someone please explain how this would reduce inflation?

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