Just as expected, the Inflation Reduction Act is not saving us $264 billion, but actually costing us $750 billion. It neither reduces our budget nor reduces inflation anytime soon. ENVIRONMENTAL IMPACT, TAX CREDIT COSTS Democrats underestimated the cost of the tax credits by as much as 300%, thanks to generous rulemaking and greater demand, analysts at Goldman Sachs, Credit Suisse and the budget model by University of Pennsylvania’s Wharton Business School say. Most of the credits are uncapped, meaning they can swell even higher. Analysis-Biden's IRA climate bill won't cut deficit as expected (yahoo.com)
They manage money, whether it's everyone's 401(k), teachers pension funds or the wealthy. That doesn't affect their fiduciary accounting and money management responsibilities.
If their forecast is right, I thought Republicans like increasing the deficit to give people tax breaks?
I dont think it has anything to do with any of that, they are trying to influence policy, that's all. They just needed to convince like one guy, and it seems to have worked:
When you've pissed off level-headed Joe Manchin, you know you're headed in the wrong direction as a party. "...he blames the administration for rewriting legislative intent during the rulemaking to grow the price tag, including not imposing any caps on spending. They busted everything,"
I always thought the projections were optimistic, but the flip side is the bill is working better than expected and is likely to fuel more economic growth than projected, which in turn leads to some offsetting tax revenue. Also they caused Tesla to slash prices, which makes EV more affordable to everyone. If you are going to deficit spend, this is the type of stuff you deficit spend on, projects that have a long term net economic benefit to the country. With those costs come benefits. Goldman Sachs, which predicts the credits will now cost $1.2 trillion, but note it a significant U.S. economic boost, to the tune of $11 trillion of total infrastructure investments by 2050. Credit Suisse estimates total federal spending under the IRA will be over $800 billion, fueling total public and private investment to nearly $1.7 trillion
He voted for it, so either he's an idiot who didnt do the reading or he's just trying to find something to campaign on in his red state to look "reasonable."
He isn’t an idiot. I think it is mostly the latter. Normally I may agree with him but I think the bill is doing so much good it is one of the few instances I would shrug off the deficit impacts.
That is straight up republican logic to boot ... cutting taxes is costly to the deficit short term, but "pays for itself" long term ... that's what they always say, anyway ... so they should able to understand this ...
The infrastructure investments were absolutely needed. They were essential to the future of the country IMO. In that way, IMO, they pay for themselves. If people are so upset about spending - maybe the government should work on collecting more taxes from the wealth - who stand to benefit the most.
Kinds of reminds me of the narrative of Republicans that the Trump tax cuts would pay for themselves. POLITICO analysis: At $2.3 trillion cost, Trump tax cuts leave big gap
The Republican income tax rhetoric is exaggerated but not totally wrong. These tax cuts almost never gain more revenue as they say they will. At the same time they often do generate more revenue than the pure static CBO type analysis projects.
