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One-Pager: Democrats’ “Inflation and Recession Act” Makes Biden’s Cruel Economy Even Worse

August 01, 2022

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Hundreds of billions in wasteful inflationary spending won’t reduce the deficit.

  • Rather than reduce inflation, it puts inflation on steroids: Democrats’ $2 trillion spending already crushed American families with painful price increases. The Penn-Wharton Budget Model finds that, despite its misleading title, the new Schumer-Manchin tax hikes don’t reduce inflation, and may even increase it in the short term. The National Taxpayers Union finds net deficit effects are minimal in the early years when CBO and consumers expect inflation to be highest.
  • Spikes drug costs during a recession, kills new cures: Democrats’ socialist drug price setting scheme will likely cause drug prices to increase for patients for the next few years, all while killing future cures from ever coming to market.
  • Expensive wasteful Green welfare: Green New Deal tax credits ($257 billion) and Solyndra-style loan guarantees ($250 billion) will worsen our inflation problem, on top of government checks to subsidize luxury electric vehicles.
  • Handouts to the wealthy: Tens of billions of dollars in Obamacare subsidies will flow to the well-off.

Budget gimmicks won’t lower prices or the cost of health care.

  • Democrats are hiding the true costs: When made permanent, Obamacare bailouts will cost $248 billion, four times higher than what Democrats’ bill admits. Meanwhile, Obamacare has already resulted in higher health care prices and 17 percent health insurance inflation.
  • Gimmicks don’t pay for anything: To “raise” $122 billion, Democrats again delay a rule that was never implemented, and claim IRS enforcement will haul in revenue.
  • Washington price controls kill new cures and raise drug prices: Democrats’ socialist drug pricing scheme will kill up to 342 cures according to a study by the University of Chicago. That means patients suffering from Alzheimer’s and other diseases could be left without a cure.

Democrats send 87,000 new IRS agents after you and your family-owned business.

  • You are the IRS target: Not big business or the wealthy.
  • Audits will rise for all individuals by more than 1.2 million per year:
    • Nearly half would be on Americans making $75,000 per year or less.
    • Low-income taxpayers making up to $25,000 per year would see more audits too.
  • Democrats’ IRS bank surveillance comes next: Supercharging the IRS will lay the groundwork for the monitoring the Biden Administration has pledged to impose.

With their American Energy Tax and their Made-in-America Tax, Democrats cede energy production to Saudi Arabia and manufacturing to China.

  • Democrats create a new American energy tax by hiking fees and taxes on oil production and methane: Families will pay these taxes in the form of higher gas prices, larger heating bills, and higher consumer prices.
  • Made-in-America tax provides carveouts to politically connected companies, while everyone else loses
    • Democrats’ new taxes exclude Green New Deal tax credits and the new cash-payable CHIPS credit, while nonpartisan analysis shows that American manufacturers would pay 50 percent of the Made-in-America tax.
    • While trying to keep jobs during a recession, about 200 large companies will have to pay these new taxes, and many of them will have to pay it this year.
    • The nonpartisan Joint Committee on Taxation says that 25 percent of the burden of Democrats’ tax hikes would be borne by workers in slashed wages.