Letter to House and Senate leadership from 230 economists arguing that Infrastructure Reduction Act It is expected to contribute to high inflation and will burden the US economy, contrary to the claims of President Biden and Democrats.
In the letter, first obtained by Fox News Digital, the economists wrote that the US economy is at a “dangerous crossroads” and that the “inappropriately named Inflation Reduction Act of 2022” will do nothing of the sort, and instead perpetuate the same policy mistakes. Finance. that helped precipitate the current troubling economic climate.”
Senator Joe Manchin, DWVA, announced last week that he had reached an agreement with Senate Majority Leader Chuck Schumer, DNY, on the A $739 billion settlement package After more than a year of negotiations between Democrats.
Economists point to $433 billion in proposed government spending, which they say will “create immediate inflationary pressures by increasing demand, while supply-side tax increases will constrain supply by discouraging investment and draining the private sector of much-needed resources.”
They also wrote that a “special concern” is minimal corporate taxes that they say will undermine efforts to restore functioning supply chains.
In addition, the bill’s prescription drug provisions would “impose price controls that threaten health care innovation, leading to human health losses that will exacerbate the financial problems Americans are already experiencing.”
Notable signatories include Nobel Laureate Vernon Smith, former Chairman of the Council of Economic Advisers Kevin Hassett, former Director of the Office of Management and Budget Jim Miller and Robert Heller, former Chairman of the Federal Reserve Board from 1986-1989.
In addition, professors from the University of Chicago, Princeton University, Duke University, the University of Virginia, Columbia University and the University of Notre Dame, among others, were listed in the August 3 letter.
The experts concluded that while they agreed with the “urgent” need to tackle inflation, Manchin’s bill was a “misleading label” applied to legislation that would achieve the “opposite effect.”
The letter was sent to Schumer and Senate Minority Leader Mitch McConnell, Republican of Kentucky, House Speaker Nancy Pelosi, Democrat of California, and House Minority Leader Kevin McCarthy, of California.
Schumer promoted the Inflation Cut Act as an immediate solution to inflation, which hit a new 40-year high last month.
“The Inflation Cut Act will lower inflation, lower drug costs, and close loopholes that have long been exploited by large corporations that pay little or no taxes,” Schumer said Thursday on the Senate floor.
In addition to, Biden urged Congress to pass the bill during a virtual roundtable Thursday. “My message to Congress is: Listen to the American people,” he said.
“This is the most powerful law you can pass to bring down inflation, continue to reduce deficits, lower health care costs, tackle the climate crisis and enhance America’s energy security and reduce the burdens facing working-class and middle-class families,” Biden continued.
However, Republicans are less enthusiastic about spending and taxes of more than $700 billion.
McCarthy told Fox News on Wednesday that “Democrats have no plans to solve all the problems they’ve created” and that the Manchin bill is not the answer.
In the Senate, McConnell said this week that most of his colleagues are “somewhat shocked” at Manchin’s reversal of their previous positions. He went on to tell Fox News that the bill raises taxes and “calling it a bill to lower inflation is laughable.”
“Democrats are disastrously far from what American families really care about,” McConnell said in a statement this week. “Their approval ratings show it. Their reckless tax and spending proves it, too.”
The Senate is scheduled to meet on Saturday to vote on a procedural motion to move the bill forward. It remains unclear whether Senator Kirsten Senema, D-Arizona, will support the legislation, and her vote is necessary for the bill’s final passage under the reconciliation rules that would allow the majority to pass.
Democrats previously promoted a letter from 126 economists supporting the Manchin bill.