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Democrats’ Pyrrhic Victory on “Inflation Bill”

Posted on Wednesday, August 10, 2022
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by Seamus Brennan
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AMAC Exclusive – By Seamus Brennan

Inflation

Based on the testimony of left-wing media pundits and Democratic politicians in Washington, one might be inclined to believe that the so-called “Inflation Reduction Act”—passed by the Senate on August 7 to ostensibly tackle inflation, combat climate change, and lower drug prices—will serve as a political lifeboat for Democrats less than three months out from the midterms.

“It’s going to immediately help,” President Joe Biden insisted when asked whether the bill would boost his party’s political fortunes. And his allies in the mainstream media did not hesitate to agree. CNN claimed the legislation is a “big win” that could “change America” and “reshape [Biden’s] political fortunes” for the better. The New York Times suggested that Biden, following the bill’s passage in the Senate, “is on a roll that any president would relish.” CBS News hailed the legislation as “a crucial achievement for President Biden and his party.” And The New Republic called it “a big effing deal” that “puts the Democratic party on a promising new path.”

The reality is the exact opposite. The bill is likely to accelerate the problems it purports to address and worsen an economy already plagued by recession and 40-year-high inflation. Though the media has by and large failed to acknowledge it, the legislation is brimming with exorbitantly unpopular measures that will amplify inflation, increase the federal budget deficit, and harm American families. If so, it could end up being the greatest pyrrhic policy victory since Obamacare cost Democrats the House, the Senate, and the White House in 2010, 2014, and 2016.

Perhaps the greatest risk for Democrats is that the bill will turbocharge inflation—the number one malady on voters’ minds. The Penn Wharton Budget Model found that the legislation will not reduce inflation in the slightest and will in fact “increase inflation until 2024.” Furthermore, the bill will, according to the National Taxpayers Union Foundation, increase the national debt and add $285 billion to the deficit within the next 10 years—thus further aggravating inflationary concerns even as Democrats insist it will solve them.

But this is just the beginning of the political perils the bill poses for Democrats. When President Biden signs the bill into law, as he is expected to do shortly after the House votes on the measure later this week, he will be breaking one of his central campaign promises not to raise taxes on Americans earning less than $400,000. Under the IRA, Americans making less than $200,000 annually will see their tax burden skyrocket by $16.7 billion in 2023 alone—and according to the nonpartisan Joint Committee on Taxation, Americans earning less than $400,000 could fully bear two-thirds of the legislation’s tax burden.

The bill also designates a whopping $80 billion for one of Washington’s most unpopular federal agencies: the IRS. Under this legislation, Democrats have voted to hire 87,000 new agents (more than doubling the agency’s size)—a move that even Barack Obama’s IRS Commissioner characterized as wildly unnecessary.

And that’s not all. At a time when voters are concerned about historically high gas prices, the bill contains $386 billion in green energy subsidies that will, in the words of the Wall Street Journal Editorial Board, “make the electric grid less reliable and energy more expensive.” Just as concerningly, the legislation includes a 15 percent corporate minimum tax that will reduce the output of the United States economy by more than $68 billion and result in 220,000 lost jobs. As the National Association of Manufacturers aptly summarized, the IRA’s effect on the American economy will be “swift and devastating.”

Why, then, are Democrats and left-wing media activists praising the legislation as a gigantic victory for the Biden White House?

The answer, of course, is that they are trying to create a narrative that Joe Biden and the Democrats are turning their party’s political fortunes around. But whether that narrative has any grounding in reality—or is just media spin—has yet to be seen.

With the midterm elections just months away, however, it is difficult to imagine a more self-defeating political strategy than insisting that more taxes, more inflation, 87,000 new IRS agents, and doubling down on the Green New Deal are what the situation requires.

Once again, it appears Democrats been caught in the trap of believing that the desires of their far-left base represent the views of the country at large. Though Democrats may be oblivious to it now, if Republicans do their jobs, the “Inflation Reduction Act” will not be a “win” for them at all.

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PaulE
PaulE
1 year ago

The author writes “Why, then, are Democrats and left-wing media activists praising the legislation as a gigantic victory for the Biden White House?” The answer is quite simple and goes beyond the superficial thinking expressed in the article itself.

The reason the Democrats are celebrating the bill has almost NOTHING to do with the midterms. Yes, the Democrats want to throw some red meat to their voter base, but they are also thinking long-term as in shifting American society and our economy more towards socialism. They are celebratng the fact that they have cemented more socialistic policies into the nation’s system, that will be with us permanently. Republican controlled Congresses have a dismal history of repealing any socialist legislation enacted by Democrats, when they are in control of government.

Once this bill is signed into law by Biden early next week, we will be saddled with a permanent expansion of the IRS beyond anything remotely needed except to go after the poor and middle class in this country. Government will be relentless in bleeding the American public dry on an annual basis. We will be saddled with more permanent “green energy” policies, that will continue to drive energy and food costs higher for decades to come. Even as those same policies cripple economic growth in this country. Thus clearing an easy path for China to surpass the United States on the world stage.

What the Democrats are celebrating is that no matter who wins control of Congress in the upcoming midterms, the United States is permanently saddled with transformative socialist policies that will NEVER be repealed and permanently changes our country for the worse. All without one shot being fired and the American people largely apathetic to what has just transpired.

David Millikan
David Millikan
1 year ago

What victory? Not for Americans.
Like the LIE that Inflation was Zero for month of July told by DICTATOR Beijing biden and FAKE News. Inflation INCREASED OVER 9% in July 2022.
With their DESTROY AMERICA Bill…INFLATION Bill Act .
Get ready for YOUR WALLET to be DRAINED MORE leaving you with nothing but being a SLAVE to DICTATOR Beijing biden and Communist Party.
Forget about getting a COLA (Cost of Living Adjustment) for 2023. Medicare Premiums will jump up and you will have less income. Just like ALL 8 years of Hussein Obama when we got a Whole $5 for ALL 8 years and Hussein’s BIG COLA raise of $1 his last year in. Don’t forget the Too Big to Fail that Hussein Obama GAVE CEO’s $MILLIONS in Bonuses but Americans got a Whole $300. But Medicare Premiums kept INCREASING with LESS money each year till
PRESIDENT TRUMP got in.
Then WE WERE PROSPEROUS with PRESIDENT TRUMP and HAD MONEY IN OUR POCKETS and ENERGY INDEPENDENT with SECURED BORDERS and STRONG MILITARY.

Kay
Kay
1 year ago

The only thing this will help is unions and destroy small business. Politicians who get big money from unions won on this Americans lost as usual.Marxist democrats only worry about their pockets and screw us. Hiring 87,000 IRS Agents is control of your investments and if audited the IRS will make sure you pay no matter what. Total redistribution of any money saved into pockets of democrats. If we do not vote them out, we get what they have laid out for us.

Dr Rene
Dr Rene
1 year ago

Anyone who believes the DEMOCRATS INFLATION REDUCTION ACT will reduce INFLATION, LOWER DRUG COSTS & ASSIST IN THE FAILED CLIMATE PRAPAGANDA AREA, is either lying or pure ignorant.

History shows NEW TAXES, ESPECIALLY, over $1T+ in new taxes causes INFLATION.

How will adding a new 95% Excise Tax on Medications LOWER DRUGS?

As for the climate BS, WILL THE WORLDS TOO TWO GREEN GAS POLUTERS. CHINA & INDIA (ACTUALLY ENTIRE INDONESIA) being told to lower their polution? NO! THE US HAS THE CLEANEST AIR ON EARTH. YET, POLITICIANS RHETORIC WILL NEVER STOP THE OCEAN CURRENTS AND EARTH WINDS FROM BRINGING THE GREEN GAS BEING CREATED BY THE MAJORITY OF EARTH NATIONS.

HONESTY & THE TEYH MATTERS!!!

Mary
Mary
1 year ago

This only going to finish their transfer of our great free county into a Banana Republic

Arlene
Arlene
1 year ago

Write to your Reps people! Tell them what you want them to do. They probably won’t listen but we have to try!

Deb Rockwell
Deb Rockwell
1 year ago

The media is just as determined to destroy our country as the Democrats. I wonder which globalist sociopaths are paying them handsomely to spew their propaganda.

Wayne B Ray
Wayne B Ray
1 year ago

Seems like a good time for the Fair Tax

David Kittell
David Kittell
1 year ago

I learned a long time ago, that, whatever a politician says, you should believe just the opposite. And that goes for both parties, especially the career politicians.

Paul W
Paul W
1 year ago

“It’s the economy, stupid.” …it’s undeniably what sways elections. I wish more people were being red pilled because of the shredding of the Constitution, the liberty squashing, tyrannical tactics of this regime as well as the intentional destruction of this nation by every single step they take. With that said, if it takes someone getting hit in their wallet, so be it. Guess we have to take what we can get to get people red pilled…to get these evil (yes, literally) leftist tyrants out of office.

Steve G
Steve G
1 year ago

We have been sold out by the only so-called moderate demoncrats (Manchin & Sinema) so they can continue there destruction of America & our Constitution which none of them abide by. The Marxists keep on going without a response by the conservatives.
Again only solution is for millions of us to stop working, grab our guns and take back Washington & throw congress, the non-president & his minions, the traitor deep state, and many others into Gitmo!!!

Nobody’s Business
Nobody’s Business
1 year ago

Leave it to the Democrats to name bills after what it won’t do. Every thing the Democrats do and vote for is an acceleration into socialism. And the Democrats are so stupid that they don’t realize that after they are dead and gone that their families will suffer along with the rest. There is no socialist country doing well, it drags everyone down except for the ones in charge that spend your money. The politicians later even if they have money won’t be able to spend it because all businesses will cease to exist.

Rik
Rik
1 year ago

Can’t wait until the IRS shows up at my door so I can say: ” this is surely a mistake because I don’t make anywhere near $400k a year! And more likely it would take over 10 years working to accumulate that much!”

Moses
Moses
1 year ago

The good news is that the democratic party is showing real desperation with the Trump raid. It looks as if they don’t think they have stolen mid-terms and the 2024 election in their hip pockets. It made me realize how desperate the democrats now see their future. They understand that if Trump gets back in office, this time he is going to clean house of all these department heads that are life long democrats. He now understands leaving these people in their positions during his first term was his down fall. They all realize there will be indictments for Russia collusion and all the FBI shenanigans and many of the schemes to bring his down fall. Donald Trump won’t go in like a new boy, he will go in swinging for the fences. And all the democrats combined don’t have the brain power of President Trump, and they all know it. They are afraid, very afraid. He will go in as a one term president, he will not have anything to lose. Many of his people that were treated terribly will be more than happy to team up with him to make Washington pay the price for their under handed tactics. There will be lots of sleepless nights God Bless President Trump.

CheraMom
CheraMom
1 year ago

‘pyrrhic’ – new word for me! I like it.

zoe frost
zoe frost
1 year ago

“Inflation Reduction Act”???? Nope, More of the dirty, lying, evil, thieving, cheating, Commie Demoncrat’s name gaslighting! It’s the <b>Destroy USA Inflation Act.</b>

More of the traitor’s <b>America LAST</b> piece of schiff, crafted to destroy our economy, cause misery to Americans, and fatten the wallets of their BFF first, and the rest for foreign countries and illegals! Everyone knows that no amount of money will change the weather, climate changes, their “climate change” is a ginormous money grab. $Trillions already spent, what have we to show for it? POS despicable pukes, now multi-millionaire POS despicable pukes, and subsidies…taxpayers paying $$$$ for (not green) “green” stuff for wealthy folk <u>who can afford to pay for it themselves</u>!

Steven
Steven
1 year ago

Spot on. By whatever measure this bill is reviewed it is a tax and spend, pick winners and losers bill.

jocko
jocko
1 year ago

NEVER, EVER TRUST A liberal AS they ARE PURE CANCER AND THE ENEMY OF OUR NATION. THE FBI IS NOW THE RUSSIAN, KGB

Delly
Delly
1 year ago

The Inflation” Reduction” bill is an oxymoron and the entire bill is gaslighting all Americans with it supposed benefits. As most of us see it, the bill is exactly the opposite and that is why the Democrats and their bought and paid for media are hyping it so loudly. Ha!

Morbious
Morbious
1 year ago

It reminds me of the ancient medical practice of bleeding patients and has exactly the same likelihood of good result. Of course, they know that. At least the doctors of George Washingtons time believed they were helping.

Harry
Harry
1 year ago

Any socialist that thinks he will be one of the “Elite” that runs the country after the communist takeover should study what happened to Leon Trotsky, and Ernst Rohm, as well as most of the Russian military leaders before the German invasion of Russia.

Bruce C Christense
Bruce C Christense
1 year ago

Anybody ever figured out the American government wants control. This is just more of their system. We are the problems and will remain one of their problems

Ed J
Ed J
1 year ago

Just another example of the Demsheviks pursuing their motto, “We will snatch defeat out of the jaws of victory!” These Charter Members of the “180º Club” (i.e., whatever position they espouse or embrace, the exact opposite is usually true or an eminently more optimal,
reasonable, efficacious and productive solution) are running true to form, but
unfortunately to the great harm of our nation in general and all the American
people in particular.

2024 can’t come soon enough to put President Trump back in the White House. MAGA forever!

Carol
Carol
1 year ago

Democrats are out to hurt as many middle class and small businesses as possible cuz those groups don’t kiss the backside of these politicians enough! Democrats can’t stand those who don’t worship the State! Just like Obamacare hurt most middle class families with outrageous health care costs, this bill is to hurt more thru energy costs, food and education! Cram as much hurt into the economy so when it really gets bad, Republicans will be the majority and then Democrats will blame the hurt on the Republicans! Leftist sheep will buy the crap and vote blue in 2024! God help us!

Dave Smith
Dave Smith
1 year ago

So how do you go from the party of “Ask not what your country can do for you but what you can do for your country” to the disease killing America? You destroy family, education and the need to work hard. And a nation of “Take no responsibility,” “It’s ok to be stupid as long as you think what we tell you to,” and the really destructive force of “Rely on and trust the massive, centralized big government to look out for your best interest” was ripe for the infiltration of the socialist scum happily destroying America! Why do you think no country ever attacked America again after Pearl Harbor? Wasn’t because we didn’t have enemies who wanted to destroy us. It’s because they ALL realized you can’t beat us from the outside! You have to infect and destroy this great country from the inside and that’s exactly what the democrats are doing!

Michael Lewis
Michael Lewis
1 year ago

We are a nation led by self-destructive fools!

Frank
Frank
1 year ago

Step one towards a socialist america was completed 2020. This is step two because it provides the added financial security and control and the completion of socialist america will be completed during November’s midterms. I believe this because the republicans haven’t done a damn thing to prevent it from happening while the democrats have done everything, they needed to accomplish their goals.

Pete from St Pete
Pete from St Pete
1 year ago

Why does the IRS need 87,000 more gun carrying inspectors who are not afraid to them? Why does the KGB need so many gun carrying inspectors? Is this the government establishing an agency that will be able to quash any resistance from private gun owners who will resist future efforts to turn this country into a socialist paradise where the end justify the means? Just asking.

fredwriter1961
fredwriter1961
1 year ago

The party’s biggest supporters are blacks and leftist Jews who see any kind of spending as helpful. Inflation, crime, defund the cops, chaos at the border, indoctrination in schools, abortion on demand, opposition to voter Id and immigration enforcement, threatening justice’s lives, hostility to religious freedom-the party is morally and intellectually bankrupt.

Just the facts please
Just the facts please
1 year ago

What a bunch of hogwash. This is a lot rhetoric, but no substance. Note it makes claim after claim with absolutely no reasoning why it is so. That’s because when examining the facts, there is no justification for the claims made. For example, people making less than $400,000 will pay more taxes. Well, if you own a company that earns more than $Billion annually and have been paying $0 in taxes, you will have a tax increase. This is the only group that will see an increase in taxes. Each of these claims is a lie. Please check the facts on honest web sites.Just the facts

Joe Mamachance
Joe Mamachance
1 year ago

Golly.
83 thousabd more goon squad members of armed agents with glasses or….
83 thousand more teachers.
Yup.
Democrats.
Again.

Robin Boyd
Robin Boyd
1 year ago

The current U.S. government is being more influenced by outside Socialist Billionaires and Communist Chinese than by U.S. citizens. Our nation is being attacked by global Progressives Hell bent on destroying the free Constitutional Republic of the U.S.

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