https://www.city-journal.org/inflation-reduction-act-needless-health-care-provisions
The House of Representatives will soon take up the inaptly named Inflation Reduction Act. The IRA, which cleared the Senate by the barest of margins—51 to 50—through the reconciliation process, will do little to control inflation. More importantly, its health-care provisions will harm Americans in order to fund an expansion of government-run health care that disproportionately benefits the wealthy, leads to inflation, and provides inferior care.
The highly regarded Penn–Wharton Budget Model estimated that the impact of the IRA on inflation over the next ten years would be “statistically indistinguishable from zero.” Inflation might rise slightly in the first few years and decline slightly thereafter. The CBO concurred, finding that the bill would have “negligible effect” on inflation.
The anti-inflationary effect is likely even lower since both assessments were made before the Senate parliamentarian knocked out a provision that purportedly would have saved around $40 billion. Moreover, almost half of the IRA’s projected budgetary savings ($122 billion) results from a budgetary gimmick—repeal of a Trump-era drug-rebate rule that was challenged in court, has been delayed multiple times, has never had any money spent on it, and would likely never have gone into effect. Even Senator Bernie Sanders, before voting yes, labelled the IRA “the so-called Inflation Reduction Act.”
The deception doesn’t end with the bill’s title. Despite President Biden’s assurance that no American earning less than $400,000 would pay “a single penny” in additional taxes, the nonpartisan Joint Committee on Taxation found that the IRA would raise taxes on Americans in every income bracket and that people earning less than $400,000 would bear most of the increase. In fact, the IRA appropriates $80 billion for the IRS—more than six times the agency’s annual budget—to boost enforcement and collections. The bill’s authors are counting on tens of thousands of additional tax collectors to find the money to finance the IRA’s increased spending. Their targets will not be limited to Sanders’s “millionaires and billionaires.” They don’t have enough money. Inevitably, working- and middle-class people along with small businesses and sole proprietors will be targeted—that’s where the money is.