The $700 billion Inflation Reduction Act was passed by the Senate on Sunday, a smaller version of the Build Back Better Act.
The Senate approved H.R. 5376, which is better known as the Inflation Reduction Act, by a 51-50 vote. The bill passed on a party-line vote, with Vice Pres. Kamala Harris casting the deciding vote.
“It’s been a long, difficult, and curvy road,” Sen. Chuck Schumer (D-NY) noted before the vote.
After Sen. Joe Manchin (D-WV) and Schumer reached an agreement on a modified version of the Build Back Better Act, the Inflation Reduction Act was created. The purpose of the Inflation Reduction Act is to reduce the deficit and inflation, continue enhanced Obamacare subsidies, spend over $300 billion on climate change projects, and allow Medicare to negotiate pharmaceutical prices.
According to the Joint Committee on Taxation (JCT), manufacturers would be hit the hardest, with a 15 percent corporate minimum tax.
According to Rep. Smith (R-MO), the Inflation Reduction Act will “fan the flames of inflation.” The bill, he added, uses budget gimmicks and phony offsets to disguise the actual cost of the legislation. When accounting for Manchin’s fraudulent techniques, Smith said that the bill would increase America’s debt by $114 billion.
The proposal is then sent to the House, where it is expected to be passed with little opposition.
After the vote, the House Freedom Caucus provided a statement in which they expressed their opposition to the Inflation Reduction Act:
“The fact is that the Democrats’ most recent spending spree was largely motivated by pushing through their socialist “Green New Deal” policy rather than genuinely assisting Americans caught up in staggering 9.1% inflation. Many non-partisan experts believe that this legislation will not reduce inflation, and many anticipate it will have the opposite effect. “Moreover, the legislation not only provides $370 billion of handouts to climate change lobbies, but it is done on the back of the American taxpayer. Democrats will hyper-size the IRS by $80 billion (six times its yearly budget) to form an army of 87,000 new enforcement agents to go after Americans earning less than $200,000 with as many as one million more audits each year — precisely the middle-class people who are suffering most from Bidenomics’ skyrocketing inflation.”
“The wrong named ‘Inflation Reduction Act’ is a disaster from all angles, and it must be defeated,” the Freedom Caucus stated.