By Sylvia Slimak-Butler

The Inflation Reduction bill is a ridiculous misnomer and will not fool most Americans. The "reduction" will not be inflation but a reduction by 0.2% in output and an elimination of 29,000 full-time equivalent jobs.

It would also reduce average after-tax incomes for all Americans over the long run. There would be a 15% minimum tax on Corporate book incomes with profits over $1 billion. This would hamper industrial growth which would mean less jobs. Taxes on corporations eventually trickle down to the consumer in higher prices. There would also be a 1% excise tax on the value stock repurchases during the taxable year. This may deter buying stock which would have a negative impact on growth and the economy.

The bill also has measures to "help" green energy but not our wallets. It includes a tax credit of $7,500 for the purchase of EV (electrical vehicles). Average EV cost between $60,000-$80,000 and average increase in electricity usage is $606.15 annually. The "winners" of this bill are the EV manufacturers as demand will only increase the prices and most Americans would be the "losers".

There is a $64 billion clause to help boost Obamacare subsidies which will only drive up healthcare costs and premiums for other Americans with private health insurance. The largest component of nonwage benefits is healthcare (26%) which accounts for 8.1% of consumer expenditures.

The Joint Commission on Taxation has estimated which income groups will be most affected in the years 2023-2031: [1]. <$75,000 income will pay $135.9 billion (26.5%) [2]. $75,000-200,000 income will pay $151.8 billion (29.6%0 [3]. $200,000-1 million income will pay $123.7 billion (24.1%) [4]. >$1 million income will pay $101.6 billion (19.8%). So most incomes will be paying higher taxes which thus cut spending power and will hurt the economy. According to the Congressional Budget office this bill is likely to change the inflation rate by less than 0.1% whether the change is up or down within the next two years. The Committee for a Responsible Federal Budget estimates that bill would reduce the federal deficit by a mere $25 billion within the next five years. This is only a drop in the bucket for a $23 trillion economy.

Most Americans understand basic economics. They know that increasing spending during inflation and increasing taxes during a recession are a bad idea. Maybe Congress needs to listen to the American people?