Dems ‘inflation reduction’ plan will have these 3 terrible economic consequences, new analysis finds

The American people deserve better.

The Democrats are pushing through a massive tax-and-spending climate/healthcare bill that they’re calling the “Inflation Reduction Act.” But we already know it won’t reduce inflation, thanks to multiple analyses from nonpartisan, highly credible organizations. Still, won’t it at least help grow the economy and create jobs?

Yeah… no.

A new analysis from the right-leaning Tax Foundation finds that in addition to doing absolutely nothing about inflation, the “Inflation Reduction Act” would have 3 terrible economic consequences.

1. Reduced Economic Growth

The analysis finds that the plan will reduce the size of the economy by 0.2% over the long-run. (That might sound small, but it translates to billions in income for Americans that will never materialize.)

Why?

“This proposal would raise taxes on work and investment, disincentivizing productive activity,” the Tax Foundation explains. “By reducing long-run economic growth, this bill may actually worsen inflation by constraining the productive capacity of the economy.”


2. 29,000 Fewer Jobs

Far from “building back better,” this agenda would destroy jobs, not create them. The Tax Foundation finds that the economy would create 29,000 fewer jobs with these policies in place.

The two biggest factors here are the increase in minimum corporate taxation and the tax on stock buybacks, which would eliminate 20,000 and 7,000 jobs, respectively.


3. Lower Wages

Real wages, factoring in inflation, have already sharply declined under President Biden. But this agenda passing would make matters worse, the Tax Foundation finds, reducing wages by 0.1% over the long-run. (Again, this sounds small, but scaled across the entire economy is a significant chunk of change off our paychecks).

What Kind of Return-on-Investment is This?

Democrats are asking us to invest hundreds of billions of taxpayer dollars in their pet projects and endure huge tax hikes—in exchange for what, exactly?

Slower economic growth, fewer jobs, and lower wages. All while making an utterly negligible reduction in climate change and a nonexistent reduction in inflation.

The American people deserve better.

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Brad Polumbo
Brad Polumbo
Brad Polumbo is a libertarian-conservative journalist and co-founder of Based Politics. His work has been cited by top lawmakers such as Senator Rand Paul, Senator Ted Cruz, Senator Pat Toomey, Congresswoman Nancy Mace, Congressman Thomas Massie, and former UN Ambassador Nikki Haley, as well as by prominent media personalities such as Jordan Peterson, Sean Hannity, Dave Rubin, Ben Shapiro, and Mark Levin. Brad has also testified before the US Senate, appeared on Fox News and Fox Business, and written for publications such as USA Today, National Review, Newsweek, and the Daily Beast. He hosts the Breaking Boundaries podcast and has a bachelor’s degree in economics from the University of Massachusetts Amherst.

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