Finance / Government Watch / Keeping America Safe / Politics

Inflation Reduction Act Is the Problem, Not the Solution

Inflation Reduction Act
Photo Credits: CBS News

A central pillar of the just-passed Inflation Reduction Act is $80 billion going to the IRS to hire some 87,000 new agents, doubling the current force, to chase down U.S. taxpayers who allegedly are not meeting their tax obligations.

The rationale is we have a large national budget deficit — that is, government is bringing in less money than it spends — so a larger army of IRS agents chasing down tax deadbeats will help solve our nation’s fiscal problems.

But part of this same new law in which U.S. taxpayers are asked to spend $80 billion to hire more IRS agents to shake down their neighbors who are supposedly not paying their fair share, there is $430 billion in new government spending, a large portion of which is earmarked for green energy projects of various shapes and forms.

At the same time that we’re expanding our army of tax collectors, we continue to expand government and spending at an even faster pace.

The Congressional Budget Office has just released its latest Long-Term Budget Outlook, and here we get a broader picture of the problem.

According to the report, “From 1972 to 2021, total federal outlays averaged 21% of GDP; over 2022-2052 period, such outlays are projected to average 26% of GDP.”

The Congressional Budget Office projects that government will take on average 5% more from our national economy in the next 30 years than it did on average over the last 50 years.

Looking at our GDP in 2022, roughly $25 trillion, at 26% of GDP, government spending will be over a trillion dollars more than it would have been at 21%.

A trillion dollars more in spending on average per year, with another 87,000 IRS agents running after taxpayers to make sure they pay up.

So, the bigger army of tax collectors is about helping raise money to finance ongoing expansion of government and increasing control of government over the lives of private Americans.

Why, as someone whose business is trying to improve the lives of low-income Americans, do I care about this?

Turning pages forward in the CBO report, we get to the really shocking information.

From 1992 to 2021, per CBO, the average growth of the U.S. economy was 2.4% per year. CBO projects that from 2022 to 2052 the average growth of the U.S. economy will be 1.7% per year.

This should shock every American, and it’s getting hardly any attention.

The more our national economy is controlled by government and politicians, the more sluggish will be growth of our economy.

It stands to reason. Growth comes from entrepreneurs, work, creativity. More government means less of all these things and slower growth.

Slower growth means lower income and less opportunity.

Anyone who cares about helping those who want to get ahead in America should be cheering for faster growth and less government rather than more government and slower growth.

Hoover Institution economist John Cochrane has pointed out that from 1950 to 2000, the U.S. economy grew at 3.5% per year. Real income per person went from $16,000 in 1950 to $50,000 in 2000. If the economy grew from 1950 to 2000 at 2% instead of 3.5%, notes Cochrane, income in 2000 would have risen to just $23,000 rather than $50,000.

It’s why, as someone who cares about helping low-income Americans get ahead and improve their lot, I care about a growing dynamic economy, not a bloated, sclerotic economy controlled by politicians and Washington special interests.

The so-called Inflation Reduction Act takes matters in the exact opposite direction in which we should be going. Pretending to care about the nation’s fiscal imbalances while adding $430 billion in new spending, all of it driven and defined by Washington special interests, is the problem, not the solution.

Star Parker is president of the Center for Urban Renewal and Education and host of the weekly television show “Cure America with Star Parker.”

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Michael Lewis
1 month ago

Please note I am not antisemitic nor anti-Rothschild. I use the text below because it explains our banking system better than any other text I have come across. Point is our government just prints fiat currency as debt and can use it to pay any government debt. There is no need to tax citizens other than to exert power over us. Government is supposed to protect and facilitate citizens not persecute us.

stillnessinthestorm.com/2017/07/how-the-rothschild-family-rule-the-united-states-of-america/” target=”_blank” rel=”noopener nofollow ugc”>How the Rothschild family rule the United States Of America – Stillness in the Storm
stillnessinthestorm.com/2017/07/how-the-rothschild-family-rule-the-united-states-of-america/

This is how the Rothschilds have come to own governments and most of the world. Interest on money is the key here. If money was put into circulation interest-free, and there was no interest on money in any form, it would return to its rightful role as a unit of energy exchange that overcomes the limitations of barter. It is when you introduce interest that the trouble starts because then you are making money from money and it no longer serves the people – it enslaves them. The bank credit/interest system means that the unit of exchange for human activity comes into circulation right from the start as a debt.
Governments could create their own money interest-free to pay for public services, but instead, they borrow it from the banking system and the population has to pay it back, plus interest. It is the same with individuals and businesses. Governments don’t create their own interest-free money; they are controlled by the families who also control the banks, most notably the Rothschilds. Abraham Lincoln was assassinated by the Rothschilds when he began to print interest-free money called ‘greenbacks’ to fund the North in the American Civil War. The Rothschilds were funding both sides in the Civil War, as they do in all the wars they engineer, but Lincoln eventually refused to pay their phenomenal levels of interest. The Greenback system worked so well that Lincoln was considering making it the permanent means of government finance. This was the worst nightmare for the Rothschilds. The Rothschilds had Lincoln assassinated by John Wilkes Booth in 1865 and the greenback policy went with him.
There is another vital aspect to understand about interest on money: when you take out a loan, the bank ‘creates’, in the form of ‘credit’, the amount of the ‘loan’. This sounds obvious and straightforward, except for one thing. You are not paying back only the loan; you are paying back the loan, plus interest, and the interest is not created, only the principal figure. This means that there is never even nearly enough ‘money’ in circulation to pay back all the outstanding loans and interest. It is a fatal flaw with regard to human freedom and it has been done purposely to ensure that bankruptcy and loss of property and possessions to the banks are built into the system. It is all part of the Rothschild energy-construct that flows the wealth and energy of the people in their direction. A fantastic amount of the money that people pay in taxes goes straight to the private banks to pay back interest on ‘money’ that the government could create itself, interest-free but doesn’t. ‘Privatisation’ is the selling of state assets in response to bank-created debt.

SweetLadyMary
1 month ago

Democrats are morons. Never, ever vote for a democrat. They will say or do anything to get or stay in power. They are also the party of tax and spend, as long as it is your money they are spending.

Bill
1 month ago

Anything the government gets involved in ends up hurting the people…

David
1 month ago

It is really too bad we cannot have government based on the original words of our Constitution. . The federal income tax has enabled the “Big Government” politicians to concentrate power in Washington, D.C., a situation the Founding Fathers wished to avoid. Were there no 16th amendment, the federal government would have to tax everyone equally I would rather see any Federal taxes assessed upon the states in proportion to each state’s representation in the House of Representatives.In such a scenario, I visualize the state and territorial Governors working to keep as much local money in their states rather than sending it to D.C. and getting a pittance back. This is probably the best way to balance the federal budget as any politically devised formula would be ignored by Washington. If this scenario were in use each state would have more money for roads, schools, public safety and other real government needs and responsibilities.

Comments??

JEFFREY JONES
1 month ago

Arrest the whole biden administration for treason and murder!!!!!!

Smili'in Jack
1 month ago

Every Tyrant has put the opposition in prison or exiled them or run them out of the country. In the end the opposition returns stronger than ever and ends up in charge and the tyrant is either killed or run of the country himself.

Rik
1 month ago

Inflation INDUCEMENT Act IS the Real Result of Jackass Joe’s PHONEY attempt to mislead the American Citizenry! . . . He and ALL his cronies NEED to be exposed as the TRAITOROUS Scumbags they are and punished accordingly!!!

David
1 month ago
Reply to  Rik

Misleading is ingrained in politicians. The Dems say we have to tax the big corporations more but what they are really doing if taxing the lower, less educated classes (who the pols believe are too dumb to know). An added cost to manufacturing means the company charges more for their products and the poor have to pay these added costs in effect paying the corporate tax.

Now it is rumored Brandon wants to eliminate benefits of IRAs, 401-Ks etc. Think about your IRA. when you start taking money out, all those capital gains within the IRA are taxed at ordinary tax rates. The government is already making money a your expense.

Smike
1 month ago

They’re bad, we’re bad so says FOX and CNN. It’s my way or the highway so says the followers of Trump and Biden. If you read Profiles in Courage, it’s always been that way. Every once in a while someone has the guts to stand up and they get crushed, slandered and voted out of office. From the beginning we’ve fought each other over everything. Free speech, freedom of religion, liberty and justice for all. Those are the values we want….as long as you agree with me.

legally present
1 month ago

Meanwhile the illegal aliens working in our country are a line out the door at Walmart of them sending the $$$ earned here to their home country. Of course they are spending a LOT at Walmart as their carts are full of pop by the case, while we don’t have enough $$$ to afford that because they live in high numbers in motel rooms, or homes.

kaj
1 month ago

Terrible bill

johnh
1 month ago

I think all of us would like to pay less for prescriptions, but I think private industry can do a much better job of running their business that the US Govt. Why would big Pharm spend millions to develop new medicines in Govt. will only allow them to sell for less than it cost them to develop. And Congress should look at Tort reform to limit the amount paid in frivolous lawsuits against drug manufacturers.

JEFFREY JONES
1 month ago

Arrest the whole biden administration for treason and murder!

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