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Biden, Democrats Lied About “Inflation Reduction Act”

Posted on Monday, April 3, 2023
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by AMAC Newsline
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88 Comments
Inflation

AMAC Exclusive – By Andrew Abbott

A new report from Goldman Sachs confirms what conservatives warned all along – Democrats’ “Inflation Reduction Act” (IRA) is actually just another enormous spending bill that will blow out the deficit in service of a far-left agenda. And despite the Biden administration’s attempts to distance itself from negative headlines, the IRA and policies like it are continuing to wreak havoc on the U.S. economy, affecting everything from persistently high inflation to ongoing instabilities in the banking sector.

According to a Wall Street Journal analysis of the Goldman Sachs report, “Democrats used accounting gimmicks to claim the partisan law would reduce the budget deficit.” But now, the investment giant “projects [the IRA’s] myriad green subsidies will cost $1.2 trillion—more than three times what the law’s supporters claimed.”

The reason for this discrepancy is the Biden administration’s loose interpretation of the conditions that must be met to earn tax credits outlined in the bill and the fact that the credits aren’t capped. In practice, this means that companies can vacuum up a virtually unlimited amount of federal dollars for a modest investment in so-called “green” infrastructure and production technology.

In addition to increasing the deficit, the Journal reports that the IRA will raise energy costs for American consumers because “Oil and gas companies will spend less on increasing production and more on developing carbon capture technologies, hydrogen and biofuels that are profitable only with the IRA’s rich tax credits.”

Blame for this bait-and-switch lies in large part at the feet of West Virginia Democrat Senator Joe Manchin, who brokered the deal on the IRA with President Biden last year.

In an op-ed for the Journal last week, Manchin subtly admitted that he’d been duped: “When President Biden and I spoke before Congress passed the Inflation Reduction Act last summer, we agreed that the bill was designed to pay down our national debt and shore up America’s energy security,” Manchin wrote. “Yet instead of implementing the law as intended, unelected ideologues, bureaucrats and appointees seem determined to violate and subvert the law to advance a partisan agenda that ignores both energy and fiscal security.”

Senator Manchin further demanded that Biden “instruct his administration to implement the Inflation Reduction Act as written and stop redefining its credits and other subsidies” and “sit down with congressional leaders and negotiate meaningful, serious reforms to the federal budget.”

But given Biden’s record thus far, Manchin should hardly be surprised at Biden’s radical re-interpretation of the IRA, and shouldn’t hold his breath for a course correction. Since day one, the White House – and Manchin’s fellow Democrats in Congress – have been pushing the same big spending policies despite clear evidence that they would cause an inflationary spike.

Back in 2021, top Obama economic advisor Larry Summers blasted Democrats’ $1.9 trillion “American Rescue Plan” as the “least responsible” economic policy in 40 years. Democrats continued their spending spree in 2022, including with the Inflation Reduction Act, which the Penn Wharton said at the time of its passage would actually cause inflation to increase – and that’s using Democrats’ cost projections, which have now been proven to be a gross underestimate.

In total, according to the Committee for a Responsible Federal Budget, the Biden administration has added more than $4.8 trillion to the deficit since taking office. Though inflation has come down from a high of over 9% in 2022, it still remains more than three times higher than the Fed’s target rate of 2%.

The drastic implications of inflation can be seen everywhere in the economy. 62% of Americans now report living paycheck to paycheck. In February, the Commerce Department assessed that consumer prices rose .6% from December to January, the fastest price increase since June last year.

The Federal Reserve has also been forced to raise interest rates in an attempt to bring down inflation, causing more instability. It was this in part that led to the collapse of Silicon Valley Bank in March and persistent fears about a broader banking crisis.

Yet in response to this crisis, Biden has only made things worse by directing the FDIC to backstop all deposits at Silicon Valley Bank and Signature Bank. This means the American taxpayer is potentially on the hook for over a quarter of a trillion dollars of additional debt.

Biden is also plowing ahead with his plan to forgive up to $20,000 of student loan debt for every American college graduate. Experts say the policy will cost $400 billion over the next 30 years and will do nothing to limit the cost of college. It will also make inflation worse.

On top of it all, Biden has just proposed a budget with an eye-watering price tag of $6.8 trillion. Just like the IRA, much of this money will be funneled to far-left special interests while American taxpayers are forced to foot the bill.

The spending policies pursued by President Biden and congressional Democrats caused an inflationary spiral, and their refusal to cut spending once inflation took hold has made it worse. Now, the country is facing signs of a broader recession and economic crisis for which Democrats once again are refusing to take responsibility.

Andrew Abbott is the pen name of a writer and public affairs consultant with over a decade of experience in DC at the intersection of politics and culture.

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Robert Chase
Robert Chase
10 months ago

There is NO fix for the bureaucracy we have permitted to grow. Politicians promised freebies and cures for every pain, we sat back while the Deep State developed. Vote Trump in again and he will do things we prefer but the Deep State will continue to frustrate and hold back reforms.
There is only one legal and potentially non-violent fix and that is Convention of States. We must insist on a FED confined to the Constitutional limits crafted by the framers. Major reduction in the FED = far less opportunity for mischief by crooked politicians. We do this or die from a thousand cuts.

Pat R
Pat R
10 months ago

Biden or Dems in Congress will NEVER stopped throwing other peoples’ money away, either to financial supporters or their agenda items. It is NOT THEIR MONEY so why even worry about it? Talk about TOTAL LACK OF RESPONSIBILITY and a disregard for the citizen’s financial situation resulting from higher taxes on everything. The people are their ‘printing press’.

Gus
Gus
10 months ago

I am not sure why anybody is surprised at this article. This isn’t the first time something like this has happened and it’s not going to be the last. As long as the Democrats are in charge. Remember pelosi we have to pass it in order to figure out what’s in the bill. Same situation here. The biggest problem is that most conservatives will not get out and vote, but most liberals do. Therefore it’s a one-sided voting arena.

Robert Zuccaro
Robert Zuccaro
10 months ago

Duh. Democrats lying? Say it isn’t so! Seriously, who didn’t know they lied? After all their lips were moving…

Keith Bly
Keith Bly
10 months ago

Democrat party=liars and deceivers. Their only aim is for themselves; their power, their enrichment.

Theresa Coughlin
Theresa Coughlin
10 months ago

how do you know a democrat’s lying? Their lips are moving.

CRAIG OTTO
CRAIG OTTO
10 months ago

They’re DEMOCRATS! They’re paid A LOT OF MONEY TO LIE TO US! LOOK AT NANCY P and the rest of them who are doing “INSIDER TRADING” and NOTHING IS BEING “DINE ABOUT IT”. Plus they’re being FED this INFORMATION from OTHERS!!

Word of Truth
Word of Truth
10 months ago

By now, everyone should know that the name of a Democrat bill is exactly the opposite of what it really is. Massive government spending combined with the government-mandated covid lockdowns caused runaway inflation. The latest round of massive government spending only makes it worse.

Allen Andrews
Allen Andrews
10 months ago

Any America voter who supports a Democrat is either a moron or a deliberate traitor to the USA. Democrats are the enemies of the Constitution and the Republic and seek to enslave all of us the same way that they enslaved the Africans who were sold by other Africans to the American and British slave ship owners. The Democrat elites want a return to the first half of the 19th Century, except that they want to own everyone in America. They are all liars and they are all criminals and Biden is their figurehead. Down with the Democrat Tyrants!

Bruce H
Bruce H
10 months ago

Truth is what remains unsaid AFTER democrats have presented all their arguments and is usually the exact opposite of what the democrats said.

Bruce H
Bruce H
10 months ago

Tax and Spend legacy continues for Democrats. They will spend us into bankruptcy and blame Republicans, or Trump.

BobA
BobA
10 months ago

Thanks Manchin.

Gary
Gary
10 months ago

I thought it was the inflation production act.

John Doane Jr
John Doane Jr
10 months ago

The question, who is going to stop this wreck less behavior?

William Wood
William Wood
10 months ago

Every time a Communist Democrat flaps their gums, they’re spewing lies. All of them are such compulsive lier’s they wouldn’t know the truth if it smacked them in the face.

Will
Will
10 months ago

Well of course the democrackheads lied , think about it thats all they have done since they have come in to office , then they blame it on the Republicans for their doin , anything and everything that comes out of their mouth is a big lie.

Mbj
Mbj
10 months ago

Amen and amen to mojo’s comments! Let’s stand up to these Queers and transgenders that are ruining our country!
Arm yourselves and go after these abominators ! This is what the second amendment was written for.

Lisa Skinner
Lisa Skinner
10 months ago

Joe Manchin probably screwed himself out of re-election after falling for Biden’s lies.
FJB

David Campbell
David Campbell
10 months ago

The left lies.
The left lies all of the time.
The left lies all of the time about everything.

CB
CB
10 months ago

You have to figure that anything that comes out of a democrats mouth is the opposite of what they are saying. Lies, Lies And more lies!

Ike
Ike
10 months ago

Every Democrat in Congress (Senate and House of Representatives) should be fired and be sent home with their heads between their legs in the coming 2024 election!! This country don’t need these Communists any longer and should be sent back to China and/or Russia and be barred for life to put their feet on our soil ever again!!!

Mister
Mister
10 months ago

Reduction call it whatever you want but you lied as always

Fred
Fred
10 months ago

You don’t need to be a genius to know how Biden and his cohorts caused inflation.
He have spent far too much money that America does not have and hence has to borrow MORE!
Obama increased America’s debt to 20 some trillion (more than all the previous presidents combined) and in the short time Biden has been in office, he increased our debt to 30+ Trillion. Meanwhile he has the Fed printing more money, night and day to keep up the money supply in synch with debt. That dilutes the worth of every dollar, and is called inflation.
Manchin sometimes stood up to Biden and others in his own party, when he felt what they were selling, was against his constituents and America’s best interests. I believe he was duped by them and now has regrets that he fell for it.
The “Inflation Reduction Act” is a lie, it is just the opposite, it increases inflation for every American and we all feel it at the grocery store, the gas pump and everything we have to pay for to live.
WE should not be spending Trillions, just a short time ago budgets were in Billions not Trillions. Nobody has a clue how much a Trillion dollars is! It is too much to comprehend.
We should not be spending such crazy amounts for wars against our enemies or giving it to “friends” fighting “proxy” wars against our enemies. Nor should we give away or deplete our Strategic Oil Reserves for any purpose other than a national emergency of America.
America has helped too many for too long and we owe no one anything!

Freespeech
Freespeech
10 months ago

Manchin is either a dupe, a clever imposter or a liar. In any case, the people of West Virginia should dump him.

Rick
Rick
10 months ago

What haven’t they lied about for the last 60 years or so?

Mary
Mary
10 months ago

Congress must not raise the debt ceiling. The MAGA republicans must stay strong. This is their only leverage. The American Marxism has infiltrated every high level position in this Country.

David Millikan
David Millikan
10 months ago

DICTATOR Beijing biden is having his HHS Plan to Prioritize Organ Transplants Based on Skin Color.
NO BS.
Pure DISCRIMINATION.

Adonis
Adonis
10 months ago

This is the one Joe Manchin authored with Schumer and stabbed his constituents in the back. Now his pants are on fire as truth comes out and his re-election is approaching.

jackdawg
jackdawg
10 months ago

What I want to know is what is, all of a sudden,the dems lie. they have lied exhaustively since Obama left and while he was in the WH. This is nothing new. They cannot tell the truth; it is not in their vocabulary. They choose to lie and nobody does anything about it. Quit griping and so something like vote them all out. Mark my word: there will be cheating in the upcoming election, so get ready. A lot of the GOP congressmen and governors are RINOS. They need to be canned in the next round. We Americans who still believe in our country need to kick the bums out and get a new stare; otherwise we may not get another chance.

CornPop
CornPop
10 months ago

Democrats’ “Inflation Reduction Act” (IRA) is actually just another enormous spending bill – I’m Joe Biden and I did that!

Jabe
Jabe
10 months ago

Why not, they lie about everything else. They must be stopped!

Larry Mace
Larry Mace
10 months ago

What, Democraps lied to us?! My gosh! So, what’s new? Democraps have been lying to the American people for de4cades. And Senile Joe has only RARELY told the truth about anything. Although, it’s interesting that Mitch McConnell at first claimed to oppose the IRA (Inflation Rejunification Act), then proceeded to lead a pack of traitorous Republican senators in voting FOR that piece of Toro Poopoo.;

P2burner
P2burner
10 months ago

This is just so Demorcrat…call a bill an uplifting and cozy moniker, make is thousands of pages long to no human could read it in the time allotted to avert the “crisis” invented to be solved by said bill, and voila, another Dem lie.

John DeGarmo
John DeGarmo
10 months ago

LYING BIDEN.

Letts Brandon
Letts Brandon
10 months ago

Mr. Manchin is quite the lier to claim a bill he wrote had to be reinterpreted to do exactly what we said it would do.

Dave T.
Dave T.
10 months ago

I’d say the Republicans need to refuse to raise the debt ceiling until an agreement can be made on a balanced budget.

John Riley
John Riley
10 months ago

It is getting to look more and more like the old Soviet Union. Everybody is in charge, but nobody is responsible.

David Millikan
David Millikan
10 months ago

I said from day one to call it the
‘INFLATION INCREASE ACT’.
And I was right.

Mike
Mike
10 months ago

Tell me when the democrates haven’t lied?

Rex
Rex
10 months ago

It’s actually the fiscal black hole creation act. Brought to you by the masters of newspeak.

anna hubert
anna hubert
10 months ago

First you enforce the policies that create the inflation and than you pass the act to reduce the inflation Communist regimes locked the opposition in the mental institutions where they were subjected to mental torture Now we know what it’s like

Jackie
Jackie
10 months ago

lt seems to me that Biden and Democrats lie about everything all of the time!! They don’t think that we can handle the truth and, truth be known, we can’t because if we knew what they were really doing and planning, we would get rid of all of them!!! They misnomer every bill so that we will think that they are doing something for us but they aren’t – they don’t care about us at all!!! They only care about their personal wealth and power – period!! Inflation isn’t getting better because the bill had absolutely nothing to do with inflation except to create more inflation!!!

TPS
TPS
10 months ago

And the consequences are, well none, because our so called politicians have done nothing to put an end to this deception along with msm doing nothing more than covering up. IMO

FJB
FJB
10 months ago

I’m SHOCKED, shocked I tell you, that the Democrats lied! They cannot be compromised with. To them, the end justifies the means. They must be defeated.

Tom
Tom
10 months ago

Manchin should have realized that if dopey’s lips are moving he’s lying.

Melinda
Melinda
10 months ago

It’s obvious Manchin didn’t read the bill (did anyone in congress?). He knows those guys and still took them at their word? So he’s complicit.

Ann S
Ann S
10 months ago

When their plan is to destroy America this is what they do. The WEF are in charge and not Brandon nor the Congress is capable of stopping this.
Brandon policy has always been to throw money and more money at a problem. This is what he did with all the bills he got passed. The population is becoming poorer and poorer and soon the dollar will fall, banks will fall and all money the people have will be worthless.
This Trump indictment is to distract the people to what is really going on.
It is too bad the RINOS don’t see this.
We are witness to the destruction of America and no one objects.

J. Farley
J. Farley
10 months ago

When did they tell the truth about anything, Never, never, never!

PaulE
PaulE
10 months ago

LOL!!! Big surprise…NOT!!! Biden lied yet again. However, the IRA was available on-line for anyone to read for several days, if not weeks before it was passed by Congress and sent to the idiot in the WH to sign into law. The entire bill read like exactly what it was: A mini–Green New Deal spending bill with a whole lot of new taxes and regulations layered on top to partially pay for the whole mess. Along with a number of new federal government programs to monitor and enforce compliance.

The IRA had NOTHIING to do with reducing inflation. That was just the laughable title the Democrats in Congress slapped on the bill knowing the vast majority of the American public and almost all members of Congress don’t ever bother to read any of the legislation Congress writes before ramming it through. Oversight by the public only works if the public actually does its part and keeps up with what Congress is trying to do. Sadly, most people are way too apathetic to do anything but complain after all this ruinous legislation has been enacted into law.

Yes, the Democrats under-estimated the cost of the bill by at least a factor of three, but they do that on all progressive spending legislation going back decades. The Goldman Sachs estimate is actually a bit low per my back of the envelope calculations using what the true costs were in Europe when they enacted many of these same policies. If anything, you can add another $500 billion to $1 trillion dollars over the 10 year period based on what most European countries have ended up spending on this boondoggle so far. So as I said over the weekend on the last Climate Change article, the American people should prepare to dig deep to pay for the changes that are now in the pipeline of “green energy” and Climate Change headed our way. By the time the 2024 elections roll around, I expect the United States to be in a far worse place than we already are today.

Paul W
Paul W
10 months ago

If the stumblebum, the dims and most “R”s open their mouths, they’re LYING. No surprise here. There is no longer ANYTHING that the dc sewer says or does that surprises me…or I believe. NADA.

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