{"id":1579342,"date":"2022-07-29T15:10:35","date_gmt":"2022-07-29T19:10:35","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1579342"},"modified":"2022-07-29T15:10:41","modified_gmt":"2022-07-29T19:10:41","slug":"dems-inflation-reduction-act-will-have-no-effect-on-inflation-analysis-finds","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/dems-inflation-reduction-act-will-have-no-effect-on-inflation-analysis-finds\/","title":{"rendered":"Dems\u2019 \u2018Inflation Reduction Act\u2019 Will Have No Effect On Inflation, Analysis Finds"},"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\">24<\/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%2Fdems-inflation-reduction-act-will-have-no-effect-on-inflation-analysis-finds%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=1579342&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--><div><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/07\/GettyImages-1241899452-scaled-e1657895662579.jpg\" class=\"ff-og-image-inserted\" alt=\"image\" \/><\/div>\n<p>Democrats\u2019 new spending bill, the \u201cInflation Reduction Act of 2022,\u201d will have a statistically insignificant impact on inflation, according to an analysis released Friday.<\/p>\n<p>The <a href=\"https:\/\/s3.documentcloud.org\/documents\/22122279\/inflation-reduction-act-of-2022.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">legislation<\/a>, a budget reconciliation bill proposed by Democratic Sens. Chuck Schumer of New York and Joe Manchin of West Virginia, is <a href=\"https:\/\/www.manchin.senate.gov\/newsroom\/press-releases\/manchin-supports-inflation-reduction-act-of-2022\" target=\"_blank\" rel=\"noopener noreferrer\">intended<\/a> to address skyrocketing inflation by subsidizing energy and health care costs for consumers and lowering the budget deficit. However, despite its numerous tax increases, the bill will only cut deficits by $248 billion and fail to have any measurable effect on rampant inflation, according to an <a href=\"https:\/\/budgetmodel.wharton.upenn.edu\/issues\/2022\/7\/29\/inflation-reduction-act-preliminary-estimates\" target=\"_blank\" rel=\"noopener noreferrer\">analysis<\/a> by the University of Pennsylvania\u2019s Penn Wharton Budget Model.<\/p>\n<p>\u201cThe Act would very slightly increase inflation until 2024 and decrease inflation thereafter,\u201d the analysis found. \u201cThese point estimates are statistically indistinguishable from zero, thereby indicating low confidence that the legislation will have any impact on inflation.\u201d <strong><a href=\"https:\/\/dailycaller.com\/2021\/06\/04\/joe-manchin-infrastructure-bill-bipartisan-support-gop-republican-joe-biden-kyrsten-sinema\/\" target=\"_blank\" rel=\"noopener noreferrer\">(RELATED: Manchin Suggests He Won\u2019t Back Infrastructure Bill Without Bipartisan Support From Republicans)<\/a><\/strong><\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">Our country must be energy independent to be the superpower of the world. The Inflation Reduction Act increases our energy security by ensuring fossil fuel resources are not arbitrarily eliminated over the next decade. It will also bring manufacturing &#038; mining back to N. America. <a href=\"https:\/\/t.co\/L9dtTXTUln\">pic.twitter.com\/L9dtTXTUln<\/a><\/p>\n<p>\u2014 Senator Joe Manchin (@Sen_JoeManchin) <a href=\"https:\/\/twitter.com\/Sen_JoeManchin\/status\/1553005073915150336?ref_src=twsrc%5Etfw\">July 29, 2022<\/a> <\/p>\n<\/blockquote>\n<p>The bill <a href=\"https:\/\/dailycaller.com\/2022\/07\/28\/joe-manchin-defends-new-reconciliation-package\/\" target=\"_blank\" rel=\"noopener noreferrer\">shells out<\/a> $370 billion in subsidies and tax credits to promote green energy and appropriates roughly $80 billion to expand the size and enforcement capacity of the Internal Revenue Service. In addition, the legislation would cap prescription drug prices and mandate a 15% federal minimum tax rate for corporations with market caps over $1 billion.<\/p>\n<p>Manchin has previously said he would not <a href=\"https:\/\/dailycaller.com\/2022\/02\/10\/get-serious-joe-manchin-inflation-biden-administration-30-trillion\/\" target=\"_blank\" rel=\"noopener noreferrer\">support<\/a> large spending bills during periods of high inflation. The Consumer Price Index, one of the key gauges of inflation, increased 9.1% year-over-year in June, the highest level since 1981.<\/p>\n<p>The Penn Wharton analysis also found that the bill would fail to substantially stimulate economic growth.<\/p>\n<p>\u201cWe project no impact on GDP by 2031 and an increase in GDP of 0.2 percent by 2050,\u201d the analysis found. \u201cThese estimates include the impact of debt and carbon reduction as well as capital and labor supply distortions from rising tax rates.\u201d<\/p>\n<p>The bill would also increase health care subsidies under the Affordable Care Act to sunset in 2025, which, if extended another seven years, would significantly mitigate the bill\u2019s ability to reduce the federal deficit.<\/p>\n<p>\u201cUnder an illustrative scenario where that provision was extended indefinitely, the 10-year deficit reduction estimate falls to $89 billion. The impact on GDP remains zero through 2040,\u201d the analysis found.<\/p>\n<p>As the legislation is a budget reconciliation bill, <a href=\"https:\/\/budget.house.gov\/publications\/fact-sheet\/budget-reconciliation-basics\" target=\"_blank\" rel=\"noopener noreferrer\">it needs<\/a> only a simple majority to pass the Senate, after which it will head to the lower chamber. The bill was introduced Wednesday and has yet to see a floor vote.<\/p>\n<p>The offices of Manchin and Schumer did not immediately respond to the Daily Caller News Foundation\u2019s request for comment.<\/p>\n<p>Content created by The Daily Caller News Foundation is available without charge to any eligible news publisher that can provide a large audience. For licensing opportunities of our original content, please contact <a href=\"mailto:licensing@dailycallernewsfoundation.org\">licensing@dailycallernewsfoundation.org<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Democrats\u2019 new spending bill, the \u201cInflation Reduction Act of 2022,\u201d will have a statistically insignificant impact on inflation, according to an analysis released Friday.The legislation, a budget reconciliation bill proposed<\/p>\n","protected":false},"author":96,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1579342","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1579342","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\/96"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1579342"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1579342\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1579342"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1579342"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1579342"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}