{"id":1577756,"date":"2022-07-29T09:05:54","date_gmt":"2022-07-29T13:05:54","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1577756"},"modified":"2022-07-29T09:05:56","modified_gmt":"2022-07-29T13:05:56","slug":"the-dems-new-proposal-does-nothing-to-lower-inflation-2","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/the-dems-new-proposal-does-nothing-to-lower-inflation-2\/","title":{"rendered":"The Dems\u2019 New Proposal Does Nothing To Lower Inflation"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fthe-dems-new-proposal-does-nothing-to-lower-inflation-2%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1577756&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The first thing to remember about the reconciliation <a href=\"https:\/\/www.documentcloud.org\/documents\/22122281-inflation_reduction_act_of_2022\" target=\"_blank\" rel=\"noreferrer noopener\">bill<\/a> Sens. Joe Manchin and Chuck Schumer agreed to Wednesday is that, despite its utterly preposterous name, it has absolutely zero to do with inflation. The \u201cInflation Reduction Act of 2022\u201d is crammed with the very same spending, corporate welfare, price fixing, and tax hikes that were part of Build Back Better\u2014long-desired progressive wish-list agenda items. Pumping hundreds of billions into the economy will do nothing to alleviate inflation. The opposite.<\/p>\n<p>Let\u2019s also remember the Democrats\u2019 <a href=\"https:\/\/thefederalist.com\/2022\/06\/01\/yes-biden-deserves-the-blame-for-inflation\/\" target=\"_blank\" rel=\"noreferrer noopener\">deflection<\/a> on inflation last year\u2014claiming it was \u201ctransitory\u201d and \u201cno serious economist\u201d is \u201csuggesting there\u2019s unchecked inflation on the way,\u201d and so on\u2014was all part of a concerted political effort to ignore the problem long enough to cram through a $5.5 trillion iteration of their agenda. And when inflation suddenly became non-transitory, and politically problematic, the Biden administration argued that more spending would relieve inflation. They don\u2019t care about the economy, as long as dependency is being expanded.\u00a0<\/p>\n<p>The bill is far more likely to spike consumer prices than not. You can hate corporations with the heat of a thousand suns, and grouse about the lack of fairness in the world, but it won\u2019t change the fact that businesses don\u2019t pay taxes, they collect them. The Dems\u2019 bill claims it raises $313 billion with a minimum 15 percent corporate tax rate. Democrats seem to be under the impression that corporations that pay less than 15 percent are evading taxes rather than using completely legal tools like accelerated depreciation or taking advantage of tax credits. Whatever the case, raising corporate taxes means fewer jobs or higher prices. Maybe both. What it won\u2019t do is lower inflation.<\/p>\n<p>The same establishment media that is suddenly <a href=\"https:\/\/thefederalist.com\/2022\/07\/27\/call-it-whatever-you-want-the-economy-sucks\/\" target=\"_blank\" rel=\"noreferrer noopener\">unsure<\/a> how to define a recession is going to falsely claim that the bill has a \u201cdeficit reduction package,\u201d even though anyone who\u2019s spent five minutes in D.C. knows that the bill features a bunch of accounting gimmicks that will allow Manchin to go back to West Virginia and claim his concerns about spending are allayed. The deficit reduction number\u2014which relies not only upon raising taxes on consumers but creating a more powerful IRS (and IRS public-sector union)\u2014is plucked from the ether. We have no clue how much new taxes and audits will raise. What we do know is that any new spending program instituted today will exist in perpetuity.<\/p>\n<p>The bill also dumps another $369 billion into green boondoggles, which also acts as a slush fund\u00a0for Democrats.\u00a0Now, even if you\u2019ve convinced yourself that slight variations in temperature are an existential threat to humanity, there has never been an instance of energy becoming more affordable due to pumping money into green economies. A bill with \u201cinvestments\u201d that will \u201cencourage\u201d a \u201ctransition,\u201d as political journalists would say, is really just force-feeding inefficient and expensive alternatives that elbow out reliable, affordable gas and oil, and push prices higher. Joe Manchin claims that the bill <a href=\"https:\/\/twitter.com\/ArthurDelaneyHP\/status\/1552660622894137346\" target=\"_blank\" rel=\"noreferrer noopener\">specifically<\/a> brings down energy prices. Yet, unless West Virginians are clamoring to buy already heavily subsidized electric cars, the bill gives them nothing. It takes.<\/p>\n<p>The only aspect of the bill that even feigns at being about prices allows Medicare to \u201cnegotiate\u201d (some) prescription drug prices. This is called <a href=\"https:\/\/www.forbes.com\/sites\/sallypipes\/2022\/07\/05\/government-drug-price-negotiations-offer-a-false-promise\/?sh=2029079f3a2c\" target=\"_blank\" rel=\"noreferrer noopener\">price fixing<\/a>, as the government is big enough and powerful enough to demand any arbitrary price it wants from rent-seeking companies. What it will do, as price fixing always does, is undercut innovation and investments, and create\u00a0supply shortages and higher prices for ordinary\u00a0consumers.<\/p>\n<p>The \u201cInflation Reduction Act\u201d features new taxes on natural gas and coal production. How could a senator from West Virginia ever support a proposal that promises a 40 percent reduction in greenhouse gas emissions by 2030? Achieving it would mean the economic destruction of his state. Though, to be fair, those policies would mean economic destruction of the entire economy.<\/p>\n<p>Manchin\u2014who once <a href=\"https:\/\/townhall.com\/tipsheet\/spencerbrown\/2022\/07\/28\/2010-manchin-dont-raise-taxes-in-a-recession-n2610939\" target=\"_blank\" rel=\"noreferrer noopener\">said<\/a>, \u201cI don\u2019t think during a time of recession you mess with any of the taxes, or increase any taxes\u201d\u2014always plays this game; making it difficult for Dems to create the impression of moderation at home, and then basically giving in. And, in the end, nearly every reporter is going to allow Democrats to pretend that $430 billion is a pared-down bill, a mighty political sacrifice, because what they really wanted was a $3.5 trillion bill. They\u2019re going to allow Democrats to pretend that bill lives up to its name, when it does nothing of the sort. \u201cInflation Reduction Act\u201d is to inflation what the \u201cAffordable Care Act\u201d\u2014which doubled premium costs\u2014was to health care insurance. \u00a0<\/p>\n<hr class=\"wp-block-separator\" \/>\n<div class=\"article-author-description fst-italic\">\n  David Harsanyi is a senior editor at The Federalist. Harsanyi is a nationally syndicated columnist and author of five books\u2014the most recent, <a href=\"https:\/\/www.amazon.com\/Eurotrash-America-Reject-Failed-Continent\/dp\/0063066017\/\">Eurotrash: Why America Must Reject the Failed Ideas of a Dying Continent<\/a>. His work has appeared in National Review, the Wall Street Journal, Washington Post, Reason, New York Post, and numerous other publications. Follow him on Twitter, <a href=\"https:\/\/twitter.com\/davidharsanyi\/\">@davidharsanyi<\/a>.<\/div>\n<div class=\"article-comments mt-30 mt-sm-60\">\n<div class=\"article-comments-container d-flex flex-column align-items-center py-30\">\n    <img loading=\"lazy\" decoding=\"async\" width=\"110\" height=\"106\" src=\"https:\/\/thefederalist.com\/wp-content\/uploads\/2021\/12\/fdrlst-mark.svg\" class=\"img-fluid mb-20\" alt=\"The Federalist logo eagle mark\" \/>    <\/p>\n<p>Unlock commenting by joining the Federalist Community.<\/p>\n<p>    <a href=\"https:\/\/thefederalist.com\/plans\/pricing\/\" class=\"btn btn-on-white\">Subscribe<\/a>  <\/div>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The first thing to remember about the reconciliation bill Sens. Joe Manchin and Chuck Schumer agreed to Wednesday is that, despite its utterly preposterous name, it has absolutely zero to<\/p>\n","protected":false},"author":831,"featured_media":1897834,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1577756","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_finder_url":"https:\/\/thefederalist.com\/2022\/07\/28\/the-dems-new-proposal-does-nothing-to-lower-inflation\/?utm_source=rss&utm_medium=rss&utm_campaign=the-dems-new-proposal-does-nothing-to-lower-inflation","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1577756","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/831"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1577756"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1577756\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1897834"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1577756"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1577756"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1577756"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}