Sen. Joe Manchin (D-WV), long hailed as a principled moderate Democrat who advocates sound financial management, finds himself under fire for reversing himself and taking a pivotal role in passing the President Biden-pushed “Inflation Reduction Act.”
On Tuesday, the day President Joe Biden signed the bill into law, Manchin was forced to admit that the so-called Inflation Reduction Act would provide no help to Americans in the near future.
Several studies show the $760 billion dollar initiative will negatively impact the economy.
On Tuesday, Hillary Vaughn of Fox News asked Manchin to comment on the claim that Democrats misled Americans by asserting the bill would reduce inflation and lower prices.
“Why would it?” Manchin reportedly responded testily.
After mentally regrouping, Manchin said, “Well, immediately it’s not. … We’ve never [said] anything would happen immediately, like turn the switch on and off.”
Vaughn did not ask if the bill would have an immediate impact, only if the legislation would have the impact suggested in the title of the bill.
Manchin tried to defend the bill, saying: “We’re fighting like the dickens. You got to produce yourself out of this. If you think that you’re going to wait on the Federal Reserve to raise rates, discourage you from buying anything, [and] that’s going to take care of our inflation — that’s not how you take care of inflation.”
Many, however, disagree. Earlier this week, RTM reported on how famed economist Nouriel Roubini predicts the American economy is headed toward disaster.
Further embarrassing Manchin was Vaughn’s question about the clean energy tax credits incorporated in the bill and touted by Democrats.
Manchin had to acknowledge they were part of a “10-year process” and would not provide any relief for struggling Americans in the short term.
The Daily Wire reported that a “recent study from nonpartisan economists at the University of Pennsylvania’s Wharton School found that the Inflation Reduction Act would have an impact on price levels “statistically indistinguishable from zero” despite its high price tag.
Republicans resisted adding $760 billion to the deficit, particularly since there is no projected benefit and the bill includes approximately $369 billion to combat climate change, which Biden claims is the #1 problem facing America.
Also troubling to many Americans is the inclusion of $80 billion in the bill to hire 87,000 additional Internal Revenue Service employees. This comes amid reports the IRS recently purchased 5,000,000 rounds of ammunition.
Republican claims of Democrats weaponizing the Justice Department and other federal agencies make the expansion of IRS assets especially disconcerting.
Treasury Secretary Janet Yellen told IRS Commissioner Charles Rettig in a recent letter that the expansion of the IRS would not result in an increase of audits for taxpayers or small businesses earning less than $400,000.
“I direct that any additional resources — including any new personnel or auditors that are hired — shall not be used to increase the share of small business or households below the $400,000 threshold that are audited relative to historical levels,” Yellen said.
However, like many Biden administration statements, Yellen’s proclamation has been shown to be untrue. A preliminary assessment from the Congressional Budget Office confirmed that at least $20 billion of the projected $124 billion in new revenue the new IRS expects to collect is expected to come from the middle class.