Headline RoundupAugust 3rd, 2022

Would the 'Inflation Reduction Act' Boost Savings or Raise Costs for Americans?

AllSides Summary

Democrats working to pass the 'Inflation Reduction Act' face claims that the bill would lead to higher costs for Americans.

The bill aims to raise billions of dollars over the next decade to reduce debt and fund climate change and energy programs. An analysis by the nonpartisan Joint Committee on Taxation (JCT) suggests it would raise $16.7 billion in tax revenue from Americans earning less than $200,000/year in 2023 and would raise taxes by $326 billion in the next decade. The analysis also suggests that tax increases will be frontloaded, and that by 2027, hikes for many income groups will ease. The White House and Treasury Secretary Janet Yellen rebuked reports that Americans making less than $400,000/year would see higher taxes, which would break a 2020 campaign pledge from President Joe Biden.

Left- and right-rated sources framed fiscal analysis of the bill very differently. The New York Times (Lean Left bias) said the JCT report showed the bill "would not cement a giant tax increase or result in profligate federal spending." Yahoo News highlighted research that suggested the bill "would save the average household $1,800 per year on energy bills." Conversely, Fox Business said the report showed that "every tax bracket would pay more in taxes," and the Wall Street Journal Editorial Board (Lean Right bias) called the proposed bill "a tax increase on nearly every American." Many on the right juxtaposed the purported tax increases with Biden's tax-increase campaign pledge.

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