In a move that was anticipated by Republicans, the Democrats have once again pushed through a partisan legislation that is proving to be detrimental to the American people. The so-called Inflation Reduction Act (IRA) has turned out to be nothing more than a wasteful spending spree that puts our economy at risk and rewards industries that are dependent on China.
One of the most alarming consequences of the IRA is the skyrocketing costs associated with its energy tax incentives. Initially estimated to cost nearly $385 billion by Penn Wharton’s Budget Model, recent revelations have revised that figure to over $1 trillion. And that’s just for the climate and energy provisions alone. Spending on clean cars and trucks is projected to reach a staggering $393 billion over the next decade, surpassing the original estimate for the entire IRA’s energy and climate-related provisions.
Not only is the IRA costing us a fortune, but it is also fueling inflation instead of reducing it as promised. Federal Reserve data confirms that electricity and fuel prices continue to remain high, disproving the notion that the IRA would have any positive impact on inflation. In fact, the IRA’s push for an electricity-focused future is exacerbating the problem by putting a strain on raw material supplies such as critical minerals, copper, and aluminum. As the demand for these resources increases, so do the costs, which directly impact the American consumer.
But the consequences don’t end there. The IRA is also straining America’s trade relationships with our allies. In an attempt to appease other countries regarding electric vehicle tax credits, the Biden administration has overstepped its authority and redefined the concept of a market-oriented “free trade agreement.” This has not only sparked trade disputes but has also caused bipartisan backlash from members of Congress.
Furthermore, the rushed and disjointed policies within the IRA are putting American companies and consumers at a disadvantage. The Biden administration’s constant backtracking and weakening of crucial guardrails only serve to support overseas manufacturing jobs and give foreign competitors more control over our supply chains. Despite including incentives to re-shore the production of critical minerals, China still maintains a dominant position in this sector. If we truly want to reduce our dependence on China, we need faster regulatory and permitting processes to encourage investments in critical minerals within the United States.
Ironically, while the IRA disadvantages American production, it benefits one clear winner: China. China’s strong foothold in the alternative energy industry ensures that most of America’s green energy growth will come from the very place the IRA claims to oppose. Loopholes and regulatory guidance within the bill allow Chinese entities to qualify for subsidies, while potentially excluding domestic players connected to traditional energy sources.
It is evident that the Inflation Reduction Act is doing more harm than good. We need to roll back its directives and adopt a commonsense “all of the above” approach to meet America’s energy needs. Let’s prioritize our own interests, reduce our dependence on China, and protect the American economy for future generations.
Source Fox News
