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Congressman Bruce Westerman's Weekly Column

Higher Taxes and Spending Will Not Lower Inflation

This week, Congressional Democrats used a special procedural tool called “reconciliation” to pass a $745 billion bill through both chambers of Congress on a party line vote. The misleadingly named “Inflation Reduction Act,” (IRA) will raise taxes on every income bracket, hire 87,000 additional IRS agents to enforce those taxes, cut jobs, reduce medical innovation opportunities, and certainly worsen inflation. Moreover, this bill will result in approximately $130 billion in new debt that will be carried by our children and grandchildren.

Democrats claim that the IRA will reduce the deficit by raising taxes, which will lower inflation. In reality, according to the non-partisan Congressional Budget Office, this bill will have virtually no effect on inflation this year and could possibly reduce inflation by 0.01% in 2023. The American people cannot wait years with lighter wallets for inflation to begin to go down by a measly and imperceptible amount.

President Joe Biden swore numerous times that taxes would not be raised on those earning less than $400,000 per year. The IRA breaks that promise. In fact, Americans making less than $400,000 will bear as much as two-thirds of the IRA’s additional tax burden by 2031. Raising taxes on businesses and individuals will result in fewer jobs and less economic activity. Is this what Democrats mean when they say we should all pay “our fair share?”

One of the major provisions touted by Democrats is government implemented price controls on prescription drugs. While I agree that health care costs must be reduced, artificially capping the price of drugs will raise the price of new drugs, raise insurance premiums, and discourage the innovation of new cures and therapies. That is why my legislation the “Fair Care Act,” enacts meaningful, wholistic reform to the health care system by expanding insurance options and putting more money directly into the consumer’s pockets. This will bring down costs across the board, including those of prescription drugs without sacrificing innovative cures for diseases that plague Americans.

I am dismayed that Democrats continue to repackage the same poor policies that caused sky-high inflation, stick a buzzword in the name, and expect a gold star while the economy inevitably continues to suffer. When a party cannot admit the fact that we are in a recession, it cannot be trusted to bring us out of one. I wholeheartedly voted no on the misleadingly named “Inflation Reduction Act.” I will never support legislation that will spend us, our children, and our children’s children into the ground.

 

8-12-22 3:47 PM KAWX.ORG