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The Manchin, Schumer ‘Inflation Reduction Act’ is a fraud
August 2, 2022

The Manchin, Schumer ‘Inflation Reduction Act’ is a fraud

Liz Peek Articles

Senate Majority Leader Chuck Schumer is rushing to push through the Inflation Reduction Act of 2022.

I don’t blame him. The more scrutiny the mini-Build Back Better proposal gets, the worse it looks.

Let’s start with the obvious: despite its Ministry of Disinformation title, the legislation will not reduce inflation. Analysis from the Penn Wharton Budget Model concludes “the impact on inflation is statistically indistinguishable from zero.”

This is the same PWBM that Schumer touted when opposing the GOP tax bill a while back and that Sen. Mark Warner, D-Va., describes as “well respected by both sides of the aisle.”

In addition, promises that the bill will reduce our fiscal deficit rely on optimistic assumptions about what a beefed-up the IRS will sniff out in the way of tax fraud and $313 billion in proceeds from a tax on corporations that is so injurious to our manufacturers that even Democrats will likely decide to pare it back.

As to making what President Joe Biden calls an historic investment in combatting climate change, it seems unlikely that expanding tax credits for buying even more EVs and subsidizing more renewables will solve the gritty problems of raw materials shortages and other issues sure to be complicated by the “made in America” provisions of the bill.

So, chances are that while it checks a number of satisfying boxes for Democrats running scared ahead of the midterms, this bill will not reduce inflation, will not bring down our deficit and will not have much impact on the climate.

Moreover, it will raise taxes on Americans making less than $400,000, belying a critical promise made by President Joe Biden and repeated just recently by Sen. Joe Manchin, D-W.Va., who is promoting this damaging bill.

Otherwise, it’s a terrific piece of legislation that just magically appeared full-blown at 700-plus pages out of a darkened basement, rather like our befuddled and wildly unpopular president.

Let’s review. How is this bill supposed to fight inflation? First, by allowing the government to negotiate certain drug prices, which supposedly will save $288 billion over 10 years.
Fully 40% of that ($122 billion) comes from revoking a rule put in place by the Trump administration that was never going to be implemented anyway. Such are the games played in this legislation.

There is no doubt that the government could effectively set prices on a variety of drugs, since it controls roughly 36% of total healthcare spending. But drug companies, hit by those price limits, are almost sure to raise prices on other products, new drugs or even on those same products marketed to private customers. They will not simply absorb the lower profits delivered by the feds, nor should they.

Plus, the rising cost of prescription drug prices is not driving inflation. In fact, in May, while the Consumer Price Index rose 8.6%, prices paid for prescription drugs rose less than 2%.

So, capping a commodity that is not actually contributing much to inflation cannot be expected to bring it down.

Second, the bill will purportedly fight inflation by bringing down the deficit. Of course, since Democrats deny that their reckless $1.9 trillion American Rescue Plan blew up our already bloated budget deficit and delivered inflation, this is a tricky argument.

Apparently, some deficits are worse than others.

In any event, the deficit impact depends partly on whether giving the IRS an additional $80 billion will yield substantial incremental revenues.

In an earlier iteration of Build Back Better, the Biden administration estimated such an investment in tax snoops would yield $316 billion over 10 years; the nonpartisan CBO cut that down to $200 billion. Now Democrats estimate the windfall at $124 billion, a further downgrade that does little to build our confidence.

The other source of increased revenue comes from tax hikes that, according to the Joint Committee on Taxation, would raise an additional $16.7 billion on American taxpayers earning less than $200,000 in 2023. The proposal would raise another $14.1 billion from taxpayers earning between $200,000 and $500,000.

Moreover, over the 10-year window covered by the bill, the average tax rate paid by every single income category would increase.

That’s because the 15% minimum tax on “book” corporate profits – profits reduced by the immediate expensing of depreciation for tax purposes – will stifle business spending that increases productivity and that leads to wage increases. And, because corporations don’t eat those tax hikes – they pass them along via lower wages and reduced investment.

The National Association of Manufacturers says the tax next year will reduce income for workers by $17.1 billion – and that’s just one year. They conclude it will also cost 218,108 workers their jobs.

The bill, though, will give hefty taxpayer handouts to some favored industries. The Wall Street Journal notes that “companies will get tax credits for spending on wind, solar, critical minerals, biofuels, hydrogen, carbon capture, nuclear, “sustainable” aviation fuel, lithium-ion batteries, electric-vehicle charging stations and more.”

We’ve seen how successful the federal government can be when picking winners and losers. Remember Solyndra?

Democrats argue the bill will reduce our deficit by $300 billion over the next decade. However, if the ObamaCare subsidies contained in the bill become permanent, which they will, that number shrinks to only $89 billion – a drop in the federal bucket.

As our country slides into recession and deals with 40-year high inflation, this is not the time to experiment.

It is not the time to funnel hundreds of billions of dollars, in addition to similar amounts allocated in earlier bills, to favored causes. It is, for sure, not the time to raise taxes on job creators.

Democrats must deep-six this dangerous bill, or expect to be deep-sixed themselves come November.

https://www.foxnews.com/opinion/manchin-schumer-inflation-reduction-act-fraud

Published on Fox News

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Tweets by Liz

Liz Peek@lizpeek·

9h

No tax is pain-free; taxing business hurts workers & stockholders- and the economy. #recession

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Liz Peek@lizpeek·

6 Aug

This is true- millions retired & now retuning to workforce bec they can’t afford food & shelter

deena10@MissDeeMissDee

Biden didn’t create new jobs. People are going back to work (finally) so they can afford the #BidenInflation in food shelter and fuel. F J B and zero #BidenBoom

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Arsen Ostrovsky@Ostrov_A·

6 Aug

Hi @CNN. I think you got this back-to-front … it is Palestinian Islamic Jihad terrorist that have rained down over 250 rockets at Israel! Israel doesn’t even fire rockets at Gaza, as you blatantly lie!

Hi @CNN. I think you got this back-to-front … it is Palestinian Islamic Jihad terrorist that have rained down over 250 rockets at Israel! Israel doesn’t even fire rockets at Gaza, as you blatantly lie!

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Lance Gooden@Lancegooden·

5 Aug

The U.S. military is struggling to recruit troops.

The Border Patrol is running short of agents.

Meanwhile, Joe Biden is focused on hiring 87,000 new IRS agents.

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Yusuf Unjhawala 🇮🇳@YusufDFI·

5 Aug

Taiwan: “After reunification, we will do re-education”, says the Chinese ambassador to France.
—
One Country, One Gulag. https://t.co/5U2Yzguave

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Liz Peek

9 months ago

Liz Peek

Are you better off than you were 2 years ago?
www.foxnews.com/opinion/inflation-hurting-americans-biden-bill-worse-liz-peek
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Inflation already hurting Americans, and Biden's Build Back Better will make things even worse

Are you better off than you were two years ago? That’s what Republicans will ask voters a year from now.

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Inflation is worldwide and COVID induced.

3/7

Swamp Think

Peek's article posted today on the Fox News website did not mention one word about President Trump's accomplishment of not only leading the way to American Energy Independence but for the country to become net exporters of the energy we and our allies could really use now.

Under President Trump, oil was in the low 40s (while on the same page, oil traders are now predicting as high as $200/barrel this month!), gas in our tanks cost below two bucks, inflation was under two percent and gas station attendant Putin with an economy about the size of Italy's and who is totally dependent on the price of energy was placed in an economic cage… by President Trump.

Instead Peek gives credit to media Saint Obama for his "all the above" strategy which consistent with how he operated was all campaign talk with ZERO follow through.

Does Peek not remember that Saint Obama's response to Putin invading Crimea was to send blankets.

If you want a quick read on Swamp Think, check in with Fox News.

From the Murdoch boys and Paul Ryan on down, no one is pushing the self-serving, elite globalists agenda of running the world as their personal piggy bank harder than Fox News.

And how are the globalists doing at managing world affairs?

No Trump, No Trump Doctrine

There's a growing rumble, by the minute, from people all over the planet who are suddenly missing Trump's policies, not necessarily Trump.

First, Trump's policies, domestic and foreign, were clear and common-sense driven which is anathema to the Swamp control freaks who thrive on complication and confusion to mask their real agendas and who they're really working for.

Second, the hypocrites who are now lamenting Trump's policies are the same, domestic and foreign, who fought Trump every inch of the way to prevent the implementation of policies that clearly worked.

Third, without Trump the fighter, no Trump policies would have ever seen the light of day.

And without what is now collectively the Trump Doctrine, what clear metric would we have to truly understand the depth and devastation of the Biden/Swamp debacle?

Don't you know that the global supply chain story is done on purpose for there to be empty shelves at the grocery stores and what not to screw with the public. This is done by the world economic Forum with the likes of Klaus Schwab Bill Gates and George Soros and their ilk

YOU are the delusional personality, dear. Sticking it against the US to please 🖕trump and putin. Disgusting anti American.

Maybe Liz you would support some immigration reform , you bitch about not having enough servers in your entitled selfish world , oh and you are against mask wearing too , how trumpian of you, the pandemic is all a hoax to you , just dont get sick out there might not be any hospital beds for you . The drs and nurses are sick and tired of taking care of anti mask anti vax selfish repubs Go claim your Darwin Award .

President Trump lost the election you are such a dummy he got over 95 million the other yo-yo got about 45 million the rest was fake you're a disgrace. Www.magapill.com

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Liz Peek

9 months ago

Liz Peek

Progressives got hammered on Election Day- but that was only the latest big defeat. What does this mean for Dems? Can Joe pivot? (spoiler-probably not)
www.foxnews.com/opinion/progressive-drubbing-biden-pivot-changing-guard-liz-peek
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Liz Peek: Progressives' drubbing opens door to (unlikely) Biden pivot, changing of the guard

They may not know it yet, but the ultra-liberal cabal that has choked Democrat politics and humiliated spineless party leaders like House Speaker Nancy Pelosi, D-Calif., has lost its mojo.

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Liz have you not heard latest on the “russia collusion” “steele dossier” Fiona Hill???
Or are you a typical msm reporter?

President Trump lost the election you are such a dummy he got over 95 million the other yo-yo got about 45 million the rest was fake you're a disgrace. Www.magapill.com

Liz Peek

9 months ago

Liz Peek

Joe Biden wanted to be an historic president- and he has done that. Worst ratings slide of any president since WWII.
He (or whoever is running WH) doesn’t care about voters’ top issues – instead Team Biden obsessing about climate change, gender and race.
No wonder he’s in trouble!
www.foxnews.com/opinion/biden-polls-ignoring-voter-concerns-liz-peek
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Liz Peek: Biden vs. Americans – his priorities, like climate change, ignore top worries of most voters

Voters are worried about inflation, jobs, crime, education and our open border, while the Biden White House is laser-focused on climate change, transgender rights, racism and reducing inequality.

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The great days turned to very bad days in less than a year.
Congress needs a flip to GOP next year to stop the craziness

Climate change is important.
The GOP may not care about it now, but their children will.
He is trying to get an infrastructure bill through.
He has had issues with Afghanistan, but what else could he do
The people who are taking over Afghanistan were released by the previous administration.
I am sure that Biden is not perfect but he is better than Trump.

Your bias is ridiculous. Makes you a bad writer. Btw avg teacher pay is way above 31000. Sensationalize much?

#LetsGoBrandon

Joebama

www.facebook.com/1218170708/posts/10226625535324074/

Duuuuuh President Trump lost the election you are such a dummy he got over 95 million the other yo-yo got about 45 million the rest was fake you're a disgrace. Www.magapill.com

worst ratings only from a side thats ignorant to the truth. the effects of coming off a pandemic with oil companies profitting off the pumps in order to pay their shareholders back from profits lost. inflation effects the entire world but of course your base doesnt pull their heads out their asses for one second to look around and use common sense. keep spreading bullshit and weakening our country til it no longer functions as a democracy….bc i see through your fake Christian patriotic pow wows. you are the opposite of ehat you claim and you are the definition of what you claim your rivals are. deflection, projection, hypocrisy. 3 words that sum you up

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