Inflation Reduction Act

binsfeldcyhawk2

HR Legend
Gold Member
Oct 13, 2006
24,898
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Doesn't reduce inflation :)

Nice name...kind of misleading.

Estimated Inflationary Effects
PWBM previously provided estimates of the Build Back Better Act (H.R. 5376) on inflation. Estimating the impact of the current Inflation Reduction Act on inflation is challenged by the smaller size of the program’s spending and taxes relative to the overall U.S. economy. For these estimates, PWBM uses an “impulse response” model that is standard in economics and subject to its own model limitations. We measure inflation as the Personal Consumption Expenditures (PCE) price index. We estimate that the Inflation Reduction Act will produce a very small increase in inflation for the first few years, up to 0.05 percent points in 2024. We estimate a 0.25 percentage point fall in the PCE price index by the late 2020s. These point estimates, however, are not statistically different than zero, thereby indicating a very low level of confidence that the legislation will have any impact on inflation.

 

Jerome Silberman

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Oct 30, 2009
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Brought to you by the group who decided on Defund The Police instead of Reimagine Policing.
walter-lebowski-i-did-not-know-that.gif
 
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binsfeldcyhawk2

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Oct 13, 2006
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But the Inflation Reduction Act isn’t just misnamed because it won’t do what its title promises — it will likely make inflation worse by raising the cost of producing goods and services and lowering their overall supply. The higher cost and consequent lower supply of goods means that money circulating in the economy is used to purchase fewer goods, thereby pushing up the price of goods, leading to higher inflation.

For instance, the push to remove carbon from production specified by the act is exactly the type of wasteful spending that raises the cost of producing goods. And while receiving the bill’s subsidies for green-related spending will lower the cost of purchasing these types of goods, the rise in demand will likely push the price back up.


It’s difficult to understand why Congress thinks this would reduce inflation. What’s needed is more supply or less demand, not higher demand. The act seems to get this point exactly wrong.



https://www.nbcnews.com/think/opini...ma-manchin-senate-horribly-misnamed-rcna41712
 
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KFsdisciple

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Jul 3, 2003
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But the Inflation Reduction Act isn’t just misnamed because it won’t do what its title promises — it will likely make inflation worse by raising the cost of producing goods and services and lowering their overall supply. The higher cost and consequent lower supply of goods means that money circulating in the economy is used to purchase fewer goods, thereby pushing up the price of goods, leading to higher inflation.

For instance, the push to remove carbon from production specified by the act is exactly the type of wasteful spending that raises the cost of producing goods. And while receiving the bill’s subsidies for green-related spending will lower the cost of purchasing these types of goods, the rise in demand will likely push the price back up.


It’s difficult to understand why Congress thinks this would reduce inflation. What’s needed is more supply or less demand, not higher demand. The act seems to get this point exactly wrong.



https://www.nbcnews.com/think/opini...ma-manchin-senate-horribly-misnamed-rcna41712
Politicians don’t understand economics…
 
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INXS83

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Gold Member
Jul 5, 2003
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More agents = more tax money. The lack of agents is the main reason people avoid paying what they are supposed to.
Or maybe they don't have the money to pay it. Still not a good excuse.
 

sober_teacher

HR Legend
Mar 26, 2007
13,436
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Queue the Oprah meme… You get an audit and you get an audit!

Literally hundreds of billions that should be taxed every year aren't because the IRS is starved for resources.

I've got no real complaint with people utilizing the loopholes and tax breaks that are there. I do however, with the people who get away with breaking tax laws because the IRS has lacked the resources to enforce them.
 
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hawkland14

HR Heisman
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Feb 26, 2013
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No. The rich have used this as a loophole. The IRS didn't have enough agents to do much about it as they didn't have the time to attend to it. This isn't anything new.
They will not be going after the rich ignorant one. They will be going after the middle class. Go Team Blue!

 
Sep 23, 2011
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Spending money we do not have drives the economy into inflation so we are going to fix it by spending more money we do not have!!! What can possibly go wrong 🤔
 
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hawkland14

HR Heisman
Gold Member
Feb 26, 2013
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Thanks for the tweet. Do some research. This has been know for a long frickin time. You think this is a blue/red thing? I have never seen anyone bring up teams more than you. You are a hack.
Who do you think they are going after?The billionaires with gobs of lawyers and accountants or the middle class who won’t push back because they can’t? Dont be obtuse and blinded by ideology.
 

globalhawk

HR Heisman
Dec 16, 2003
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Who do you think they are going after?The billionaires with gobs of lawyers and accountants or the middle class who won’t push back because they can’t? Dont be obtuse and blinded by ideology.
Have you done any research? You are an idiot. You think I am on team blue? Nobody takes you serious because you only believe in 2 teams. You are a joke.
 

RileyHawk

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Aug 21, 2002
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Who do you think they are going after?The billionaires with gobs of lawyers and accountants or the middle class who won’t push back because they can’t? Dont be obtuse and blinded by ideology.
You are so blinded by the right wing rhetoric. Calling you gullible is an insult to gullible people.
 
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