The Senate on Sunday passed the $700 billion Inflation Relief Act, a scaled-down version of the Build Back Better Act.
The conclave they voted to pass HR 5376, otherwise known as the Inflation Reduction Act, 51-50. The legislation passed on a party-line vote, with Vice President Kamala Harris breaking a tie.
The deflationary law came about when Schumer and Sen. Joe Manchin (D-WV) struck a deal on a limited version of the Build Back Better Act. The Inflation Reduction Act focuses on reducing the deficit and curbing inflation, extending enhanced Obamacare subsidies, spending more than $300 billion on climate change programs and allowing Medicare to negotiate the price of drugs.
House Republican Study Committee (RSC) Chairman Jim Banks (R-IN) detailed the 50 most radical aspects of the legislation.
Perhaps ironically for Manchin, the bill would not reduce inflation, according to the Penn Wharton Budget Model and the Congressional Budget Office (CBO).
The legislation would also hit manufacturers harder with a minimum corporation tax of 15%, according to the Joint Committee on Taxation (JCT).
The Inflation Reduction Act would also add more “fuel” to the “inflation fire,” according to Rep. Jason Smith (R-MO), the ranking member of the House Budget Committee. He explained that the Inflation Reduction Act uses fiscal gimmicks and bogus offsets to hide the true cost of the bill. Smith said the bill would add $114 billion to the debt when Manchin’s gimmicks are counted.
The bill goes to the House, where it will likely be voted on, barring any major disputes that have yet to arise.
The House Freedom Caucus issued a statement after the vote declaring its opposition to the deflationary law:
The fact is, the Democrats’ latest spending budget has far more to do with implementing the socialist “Green New Deal” agenda than actually helping Americans suffering from staggering 9.1% inflation. A number of nonpartisan experts all agree that this legislation will not reduce inflation, and many predict it will have the opposite impact. Worse, this bill not only directs $369 billion in handouts to climate change special interests, it does so on the backs of the American taxpayer. To fund their socialist agenda, Democrats are oversizing the Internal Revenue Service by $80 billion (six times the agency’s annual budget) to create an army of 87,000 new enforcement officers who will target Americans with up to one million additional audits annually in taxpayers earning less than $200,000 – the same middle class that suffers most from Bidenomics’ skyrocketing inflation.
The Freedom Caucus added, “The misguided ‘deflationary law’ is a disaster in every way and must be defeated.”
Sean Moran is a congressional reporter for Breitbart News. Follow him on Twitter @SeanMoran3.