It’s so bad for the Democrats that they can’t even get the corporate media to go along with their talking points about the so-called “Inflation Reduction Act.”
This weekend on ABC news host John Karl asked Biden spokesperson Karine Jean-Pierre about the so-called Inflation Reduction Act (which will in fact have no effect on inflation). The exchange didn’t go so well for KJP with Karl characterizing the Act as “almost Orwellian.”
Karl points out that the CBO estimates that the Act would do nothing to lower inflation. KJP’s sole response is that bill addresses inflation by increasing taxes on corporations and high-income earners.
GOUSA’s response: complete balderdash.
The single largest tax component in the bill is a change to the tax treatment of capital investments that makes it less attractive for manufacturing firms to invest in new plant and equipment. Less investment means less production by domestic manufacturers which will worsen supply shortages. Just months ago Biden himself was blaming supply shortages for inflation, now his tax policies are going to make it worse.
There’s also no connection between tax rates and inflation. History demonstrates this. Inflation rates in the 1970s were as high as today. During the 1970s, the top income tax rate 70 percent compared to 37 percent today. If raising taxes slows inflation today, why didn’t the even higher tax rates in the 1970s slow inflation then? The short answer is that raising taxes does nothing to reduce inflation.
The etymology of so-called Inflation Reduction Act is just one of many examples of Orwellian double-speak coming from the Biden Administration. This is the same bunch that tried to change the definitions of the words “inflation”, “recession”, “vaccine” and “woman” to suit their political purposes.
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