In a signing ceremony this afternoon at the White House, President Biden signed into law H.R. 5376, the “Inflation Reduction Act.” This legislation was passed on a straight party line vote. The IRA invests hundreds of billions into climate-related spending. As a means to offset this spending, the legislation also contains a slew of new taxes and regulations on companies that produce or transport petroleum and natural gas.
These troubling tax provisions may actually raise the cost of energy, cause inflation to go higher, and make our economy less secure. According to independent analysis by the Tax Foundation, the newly minted law will increase federal tax revenues by $324 billion, slash both wages and GDP, and cut 30,000 full-time jobs. In addition, other studies show the IRA will have virtually no impact on reducing inflation by the middle of the decade.
The statement below can be attributed to me, Craig Stevens, spokesman for the GAIN coalition:
“Families across the country are struggling to keep up with the highest levels of inflation in more than forty years. Now, more than ever, Americans need policymakers to be laser-focused on reducing prices, especially when it comes to addressing the ongoing global energy crisis. While the Inflation Reduction Act does include some positive provisions, particularly on leasing, carbon capture, and infrastructure investments, taken together, the IRA could do more harm than good.
Energy prices are up a staggering thirty-two percent over the past year. Yet, the IRA could add gasoline to the fire as it raises taxes on crude oil and imported petroleum, imposes a new fee for energy producers and pipelines, and many other taxes on job creators. Over time, these taxes will hasten – not alleviate – the domestic energy crisis.”