Counselor706
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7 ways Inflation Reduction Act would wallop your wallet
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LukSkyFokker
Call me Art
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Trumplitards think inflation reduction will hurt your wallet more than inflated inflation.
Because Biden.
Because Biden.
Only 7?
Let's just start with the fact that it's not going to reduce inflation. According to the CBO it's a flat line at best.
Four of the seven are pretty much spot on. I'll start where I think the Signal is in err.
The 'weaponizing of the IRS'. While superficially true there is a reality disconnect. I've covered this in another thread but the fact is there is NO way the IRS is going to increase it's ranks in any timely manner. And while their budget is covered through 2023, anything after that is deeply suspect. What congress giveth, congress can taketh away. 87,000 new employees is far beyond any reasonable near term (4 years) expectations.
The recession allegation is true, but highly exaggerated. The loss of 50 to 100 thousand jobs is a far more realistic number. The CBO put the number at approx. 23,000 but I'm confident that that number errs on the low side.
Inflation isn't going to soar because of this enactment, but it most likely will increase.................marginally. The impact of this is going to fall on those most vulnerable. Increases in energy costs fall disproportionately on lowest two quintiles of society. Those who can afford it the least will be hurt the most. This is allegedly being offset by "tax credits." But those that are already paying no taxes are going to be effected the most. You can't deduct below zero.
Tax hikes are inevitable even if unseen. Corporations don't pay taxes, they forward monies to the government that they've collected from their customers. To a company taxes are only a part of the cost of doing business. Businesses that do not take that into account when putting together their pricing structure will soon be out of business.
Which brings us to "offshoring." Other nations, seeing the opportunity, will take advantage of the situation by creating a tax/wage structure that will make it attractive to those companies in a position to do so to move their operations offshore. In the past this has been China but other nations are quickly replacing China. (In the past 20 years Chinese wages have increased by a factor of 14 while productivity has only increased by a factor of 2.5. The reasons for this can be discussed in another thread.)
Energy production is self-evident as is doing nothing to alleviate recession
If anyone believes that this is going to alleviate spiraling health care costs, let alone reduce same, let us all know how. I'll be more that happy to debate that issue.
Let's just start with the fact that it's not going to reduce inflation. According to the CBO it's a flat line at best.
Four of the seven are pretty much spot on. I'll start where I think the Signal is in err.
The 'weaponizing of the IRS'. While superficially true there is a reality disconnect. I've covered this in another thread but the fact is there is NO way the IRS is going to increase it's ranks in any timely manner. And while their budget is covered through 2023, anything after that is deeply suspect. What congress giveth, congress can taketh away. 87,000 new employees is far beyond any reasonable near term (4 years) expectations.
The recession allegation is true, but highly exaggerated. The loss of 50 to 100 thousand jobs is a far more realistic number. The CBO put the number at approx. 23,000 but I'm confident that that number errs on the low side.
Inflation isn't going to soar because of this enactment, but it most likely will increase.................marginally. The impact of this is going to fall on those most vulnerable. Increases in energy costs fall disproportionately on lowest two quintiles of society. Those who can afford it the least will be hurt the most. This is allegedly being offset by "tax credits." But those that are already paying no taxes are going to be effected the most. You can't deduct below zero.
Tax hikes are inevitable even if unseen. Corporations don't pay taxes, they forward monies to the government that they've collected from their customers. To a company taxes are only a part of the cost of doing business. Businesses that do not take that into account when putting together their pricing structure will soon be out of business.
Which brings us to "offshoring." Other nations, seeing the opportunity, will take advantage of the situation by creating a tax/wage structure that will make it attractive to those companies in a position to do so to move their operations offshore. In the past this has been China but other nations are quickly replacing China. (In the past 20 years Chinese wages have increased by a factor of 14 while productivity has only increased by a factor of 2.5. The reasons for this can be discussed in another thread.)
Energy production is self-evident as is doing nothing to alleviate recession
If anyone believes that this is going to alleviate spiraling health care costs, let alone reduce same, let us all know how. I'll be more that happy to debate that issue.
LukSkyFokker
Call me Art
- Joined
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You put people smarter and soberer than you on ignore.
