By Treasurer David McRae
Note: The following is an op-ed column piece provided by Mississippi State Treasurer David McRae
Congress has passed the $737 billion deceptively named Inflation Reduction Act. Democrats nationally are jubilant about their success after struggling for months to pass even a slimmed-down portion of President Biden’s vision for higher taxes, a Green New Deal, and other social policies. What does it accomplish and what does it mean for you? Well, let’s take a look.
Non-partisan experts, including the Congressional Budget Office (CBO), have reported the bill will have no impact on reducing inflation. In fact, research by the Wharton School of Business concludes that the Inflation Reduction Act “would have no meaningful effect on inflation in the near term but would reduce inflation by around 0.1 percentage points by the middle of the first decade.”
When Americans are facing an astounding 9.1 percent inflation rate, a 0.1 percent reduction in a decade or so won’t do the trick.
And while the bill’s tax hikes go into effect immediately, it’s proclaimed benefits will be delayed for a year or more. But even then, the “benefits” – and who they will serve – are debatable at best. Simply put: this bill will not help cut gas prices for working Mississippians. Instead, it offers taxpayer dollars to liberal elites who want to install pricey solar panels or purchase $80,000 electric vehicles – vehicles that have only increased in price since this bill was passed.
Democrats claim the bill is “paid for,” but paid for by whom? The answer? You.
The Inflation Reduction Act spends $80 billion to strengthen the IRS, including adding nearly 87,000 new IRS agents to harass and audit middle-class Americans. In fact, it’s expected that those making under $75,000 annually will be subject to nearly 711,000 new audits as a result of this bill. As one IRS whistleblower reported: IRS officials will be incentivized to go after taxpayers who can’t afford high-priced tax lawyers, accountants, and lobbyists to fight back.
All of this begs the question: What do any of these provisions have to do with reducing inflation? The reality is that they don’t. This bill was not about lowering prices for Mississippians. Its only goal was to appeal to the big-government crowd ahead of a tough election. And in doing so, they are taking more capital from working Americans to subsize the liberal elite’s pet projects and social experiments. That isn’t the solution America needs. What we need is small government. We need more economic liberty and free-market reforms. We need money in your hands, not the government’s.
If our office can help you get the most out of your money when it comes to college savings or unclaimed money, please call us at (601) 359-3600.
Mississippi Treasurer David McRae is the 55th Treasurer for the State of Mississippi. In this role, he helps manage the state’s cash flow, oversees College Savings Mississippi, and has returned more than $50 million in unclaimed money to Mississippians. For more information, visit Treasury.MS.gov.