Government Watch / Politics

Democrats’ Pyrrhic Victory on “Inflation Bill”

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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Robin Boyd
1 month 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.

Joe Mamachance
1 month ago

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

Just the facts please
1 month 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
1 month ago

Kinda clueless about this aren’t you kletus…

fredwriter1961
1 month 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.

Elena
1 month ago
Reply to  fredwriter1961

Romans Ch. 1. Tells us why

Pete from St Pete
1 month 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.

Centurion
1 month ago

This is just adding fuel to the fire that will be Civil War II. This war will make CWI seem pale by comparison.

Just the facts please
1 month ago
Reply to  Centurion

Ready to kill aren’t you? Sick

Joe Mamachance
1 month ago

Said Sir Joseph Asshillian in 1774 to a colonist who could not afford his tea.
Pole the bear….please.

Grace
1 month ago

You think those armed IRS agents and a Woke declaration of Marshal law won’t kill you? You have been riding the wrong horse.

Frank
1 month 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.

Kilauea
1 month ago
Reply to  Frank

Once digital currency becomes the standard, they will have us completely under control. Post the wrong comment and find yourself locked out. Kind of like the way Trudeau cut off the bank accounts of striking truckers, only this will be much, much easier.

Grace
1 month ago
Reply to  Kilauea

I guess Biden took lessons.

Michael Lewis
1 month ago

We are a nation led by self-destructive fools!

Frank
1 month ago
Reply to  Michael Lewis

The democrats woke education created the puppets that support these fools. Looks like we are the fools because it seems like they have won because they pulled off 2020 rig, pushed through this bogus bill that will only again pad their bank accounts and will again rig the upcoming midterms. My question has always been, Where is our Republican party? Trump and his political backers are the ONLY ones that cared and fought for us, and they are being crucified by the libs and rhinos.

Dave Smith
1 month 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!

Carol
1 month 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!

Tucker7518
1 month ago
Reply to  Carol

Vladimir Lenin supposedly once said, “The way to crush the bourgeoisie is to grind them between the millstones of taxation and inflation.” There’s some doubt as to whether this line is genuine; regardless, it seems like a pretty good description of what the Biden administration is doing to America’s middle class. Inflation is running rampant.

Ed J
1 month 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!

Bruce C Christense
1 month 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

Harry
1 month 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.

edward
1 month ago
Reply to  Harry

no kidding!!! but people dont seem to learn from history. most of them are, as lenin said, “useful idiots”.

Grace
1 month ago
Reply to  Harry

The New World Marxist government will not ask what your party is, there will be no party distinction, just an Elite, protected by a woke Marshal Law and Labor\. One party as in all other Marxist countries. This is going to shock the heck out of those die hard Democrats when they have to live among the deplorables. . However, there may be a light at the end gf the tunnel. I just read in the EPOCH TIMES that 400 million Chinese are in revolt against the CCP. God is good.

Morbious
1 month 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.

Delly
1 month 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!

jocko
1 month ago

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

Steven
1 month ago

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

zoe frost
1 month 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>!

CheraMom
1 month ago

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

PIDL
1 month ago
Reply to  CheraMom

I pray they are correct and this is a pyrrhic victory. I hope most of the American people can see through their lies. This is not an inflation reduction bill, but a Climate change and taxpayer oppression bill!

Moses
1 month 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.

Rik
1 month 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!”

PaulE
1 month ago
Reply to  Rik

Don’t worry Rik. The IRS will just freeze whatever accounts you have, put a lien on anything you own or just seize it outright and then arrest you when you can’t pay the fine they levy against you. They could care less what you have to say. They have a quota to fill.

Honey
1 month ago
Reply to  PaulE

A quota of conservatives to destroy

PIDL
1 month ago
Reply to  PaulE

This is very scary. The problem is this a-holes are not thinking anything about small towns everywhere and middle America overall. It they remove home ownership and small businesses of these small towns, they will have no revenue to survive. They must be hoping for complete lawlessnes and chaos and quest for survival to occupy all of our time so we do not go after the federal government.

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