https://pjmedia.com/columns/davidhasanyi/2022/07/29/the-dems-new-proposal-does-nothing-to-lower-inflation-n1616689
The first thing to remember about the reconciliation bill Sens. Joe Manchin and Chuck Schumer agreed to Wednesday is that, despite its utterly preposterous name, it has absolutely zero to do with inflation. The Inflation Reduction Act of 2022 is crammed with the very same spending, corporate welfare, price fixing and tax hikes that were part of Build Back Better — long-desired progressive wish-list agenda items. Pumping hundreds of billions into the economy will do nothing to alleviate inflation. The opposite.
Let’s also remember the Democrats’ deflection on inflation last year — claiming it was “transitory” and “no serious economist” is “suggesting there’s unchecked inflation on the way,” and so on — was all part of a concerted political effort to ignore the problem long enough to cram through a $5.5 trillion iteration of their agenda. And when inflation suddenly became non-transitory, and politically problematic, the Biden administration argued that more spending would relieve inflation. They don’t care about the economy, as long as dependency is being expanded.
The bill is far more likely to spike consumer prices than not. You can hate corporations with the heat of a thousand suns and grouse about the lack of fairness in the world, but it won’t change the fact that businesses don’t pay taxes, they collect them. The Dems’ bill claims it raises $313 billion with a minimum 15% corporate tax rate. Democrats seem to be under the impression that corporations that pay less than 15% are evading taxes rather than using completely legal tools like accelerated depreciation or taking advantage of tax credits. Whatever the case, raising corporate taxes means fewer jobs or higher prices. Maybe both. What it won’t do is lower inflation.