What is being called the Inflation Reduction Act of 2022 is being criticized by many as not living up to its name. They point out that the tax credits given to people who buy electric vehicles will make their prizes rise, more subsidies for the affordable care act will make health care more expensive and added taxes to corporations will raise consumer prices. Economist Derrick Kinney has an alert. "Those additional dollars do get passed down. When there's rising inflation all of that could spell D-A-N-G-E-R when the country is either IN or on the PRECIPICE of Full-On Recession.
As we face record high inflation, many say this package could fuel inflation as it subsidizes the Affordable Care Act and will raise the corporate minimum tax . Economist Peter Morici explains. "They are subsidizing health insurance - that can only serve to drive up the costs of health care in the United States. The higher corporate taxes will make it more difficult to do business in the United States." Morici points out a negative result from giving Electric Vehicle tax credits. "They are subsidizing the purchase of Electric Vehicles by giving purchasers money. That can only drive up the price - especially when you consider the costs are already high and the cars are in short supply."
photo: GettyImages
the faces of inflation during the Biden administration