Today, House Democrats Will Pass Their Inflation Expansion Act to Worsen America’s Economic Crisis

As the Biden Recession rages on and Americans continue to pay the highest prices in 40 years, House Democrats are poised to pass their ‘Inflation Expansion Act’ today. This legislation shows us exactly what Biden and House Democrats’ priorities are, and they are not the American people. This bill will increase IRS audits on middle-class Americans and small businesses, raise taxes on millions of Americans across all incomes, cut jobs in a recession, and waste over $350 billion on a ‘Green New Deal’ agenda.

THE FACTS ON HOUSE DEMOCRATS’ INFLATION EXPANSION ACT:

  • Only 12% of Americans think this package will decrease inflation, and nearly 60% think it will either increase or not change inflation.
  • A recent analysis by the nonpartisan Tax Foundation shows this tax-and-spend bill could actually cut as many as 30,000 jobs in the midst of the Biden Recession.
  • Spends $80 billion to allow the IRS to hire 87,000 new agents to target American families and businesses.
    • This is more staff than the Pentagon, State Department, Border Patrol, and FBI COMBINED.
    • The Joint Committee on Taxation estimates that as much as 90% of the funds raised by these additional audits will be from taxpayers making less than $200,000 a year.
  • Raises taxes on businesses when Americans are already paying more for just about everything.
    • These tax increases will be passed on to the consumer, stifle reinvestment in infrastructure, R&D, and workers, and only exacerbate the current supply chain crisis.
  • Does little to meaningfully reduce inflation. According to CBO estimates, this bill would have a negligible effect on inflation this year and would only reduce inflation by .01% at best in 2023.
  • CBO reports follow a study by the Penn Wharton Budget Model, which stated that this bill will do little to nothing to tamp down the inflation crisis that is robbing the paychecks of hardworking Americans and would actually increase inflation in the near term.
  • Raises taxes on millions of Americans in every income bracket, including those earning less than $400,000 per year, despite Biden’s numerous pledges during his campaign to the contrary.
    • In fact, Americans making less than $400,000 will bear as much as two-thirds of the tax burden by 2031.
  • Implements socialist price control schemes for prescription drugs that will negatively impact seniors, patients, those with rare diseases, and their families.
    • As a result, prices for new drugs will be more expensive, increasing costs at the pharmacy counter and raising insurance premiums. Additionally, this will lead to less innovation and fewer cures.
    • These higher launch prices for prescription drugs will increase costs at the pharmacy counter and raise insurance premiums, pushing new cures out of reach for most American patients except the wealthiest.
      • Studies estimate this bill will kill up to 342 cures and could lead to 188 fewer new uses for existing therapies and a reduction of 331.5 million life years among patients through 2039.
    • By setting the price for some medicines at just 9 years, this proposal is cutting off at the knees the R&D that happens after a medicine is approved.
      • Innovation doesn’t stop when a drug is approved. R&D continues after FDA approval to see if medicines can be used in new ways to improve patient care, especially in disease areas like cancer.
  • Extends Obamacare subsidies—enacted under the American Rescue Plan and set to expire after 2022—for 3 more years, through 2025, benefiting the wealthy and subsidizing people who already have insurance.
    • This expands federal spending without enacting any meaningful reform to a broken system.
    • Incites inflationary pressure when inflation is already at a 40- year high.
  • Spends over $350 billion in “Green New Deal” initiatives.
    • This bill creates an American Energy Tax by increasing fees and taxes on oil production and methane. American families will pay these taxes in the form of higher gas prices, larger heating bills, and higher consumer prices.
    • Nonpartisan analysis shows that American manufacturers would pay 50 percent of the Made-in-America tax.