Tipsheet

Biden Admits He Has No Idea What's in the Inflation Reduction Act

Leah Barkoukis
Leah Barkoukis  |  August 09, 2022 9:30 AM

President Biden is being criticized for appearing to admit he has no clue what is in Democrats’ massive Inflation Reduction Act, which will actually increase inflation and devastate the economy. 

"What we're doing today, what we passed yesterday, helping to take care of everything from health care to God knows what else," Biden admitted in Kentucky after touring the flood damage in the state. 

Biden's comments indicate he does not know much, if anything, about the bill.

The Inflation Reduction Act is expected to pass the House of Representatives as early as Friday and provides nearly $400 billion for environmental programs, including tax credits of up to $7,000 to buy electric vehicles, and roughly $64 billion to extend more generous COVID-19-era Obamacare subsidies.

Much of the new spending comprises grants and loans to support renewable energy-related manufacturing, including $62 billion to support manufacturers of solar panels, wind turbines, batteries and electric cars, and another $30 billion for state and electric-utility projects. 

Another $27 billion goes toward a “clean energy technology accelerator” to reduce emissions, $20 billion is set aside for “climate-smart agriculture practices” and $10 billion will support improving home energy efficiency for lower-income residences.

The bill includes $9 billion for federal green-energy procurement, including $3 billion to buy electric vehicles for the US Postal Service.

The new spending is offset by new taxes on corporations, including a new 15% corporate minimum tax, increased IRS enforcement and by allowing Medicare to directly negotiate drug prices. (New York Post)

Spencer also reported on the worst parts about the legislation, as highlighted by the Republican Study Committee.

Republican senators blasted its passage over the weekend on a party-line vote, with Vice President Harris breaking the tie. 

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“The Orwellian named ‘Inflation Reduction Act’ will do no such thing, as a number of prominent experts and economic policy groups have indicated,” Sen. Ron Johnson (R-Wis.) said. “The Penn Wharton Budget Model, the Tax Foundation, and the Congressional Budget Office all found the bill won’t lower inflation and may make it worse. The IRS would more than double in size, unleashing 87,000 new enforcement agents on American families…  [and the] nonpartisan Joint Committee on Taxation says that 78% to 90% of the revenue raised from misreported income would likely come from those making under $200,000.”