Unpacking Right-Wing Lies About the Inflation Reduction Act
The only reason republicans and the right-wing hate media oppose this law is because it requires more from the only constituents the GOP serve -- the wealthy and corporations.
On Tuesday, President Biden signed the Inflation Reduction Act (IRA), landmark legislation that will benefit all Americans, no matter his or her political affiliation.
Even if we didn’t know what it contains, we could deduce its consequence simply by all the lies republicans and the right-wing hate media carrying water for them are peddling about it.
Fox so-called “news” reported: “Electric Vehicle Subsidies Take Cash from Ordinary Americans to Benefit the Rich.”
Actually, the new law seeks to invest about $385 billion in energy and climate change incentives that include tax credits for solar and wind energy equipment production and electric vehicles purchases, as well as another $100 billion to expand health insurance subsides for policies purchased on Affordable Care Act (“Obamacare”) exchanges.
It also will require companies that report more than $1 billion in profits to pay a 15% minimum corporate tax rate, and wealthy shareholders will pay a 1% tax on stock buybacks.
These are hardly “ordinary Americans”; they’re ultra-wealthy companies that have, for the past 40 years, taken advantage of generous loopholes that even those who should be paying the Trump-era corporate tax rate of 21 percent are getting away without having to part with a single cent.
Fox’s favorite prime-time fascist Tucker Carlson claimed a provision in the IRA to provide the Internal Revenue Service (IRS) $80 billion over ten years to ensure Americans making over $400,000 aren’t gaming the system is, in effect, “hiring another 87,000 armed IRS agents just to make sure that you obey.”
Texas republican Congressman Troy Nehls tweeted:
The IRA does not mention hiring 87,000 IRS agents.
It does not state anything about arming agents.
No one is going to “spy on your bank accounts”.
Something the IRA seeks to accomplish is replenishing the IRS enforcement staff that has been cut 30% in the last 12 years despite a population increase.
The only armed IRS agents will be ones who have been traditionally responsible for criminal investigations.
Republican National Committee (RNC) Chairwoman Ronna McDaniel claimed:
“Joe Biden and Democrats want to raise taxes during a recession. Biden lied, denied, and deflected the blame for the skyrocketing prices and recession they created. Families can’t afford gas and groceries, but Biden and congressional Democrats want to raise taxes, waste more money, and make life increasingly difficult for those trying to just get by.”
Republican Senate candidate Adam Paul Laxalt tweeted:
The bill requires Americans making over $400,000 — not “$30K” — to pay a little more in taxes.
Bill supporters, like Sen. Catherine Cortez Masto, whom Laxalt specifically called out, did not vote for tax increases on people earning $30,000.
After signing the bill, President Biden explained:
“Democrats voted to cut the deficit to fight inflation by having the wealthy and big corporations pay their fair share. Every single Republican opposed requiring big corporations to pay a minimum tax of 15%, instead of getting away with paying zero dollars in federal income taxes.
And we did it while keeping my campaign commitment: No one earning less than $400,000 a year will pay a single penny more in federal taxes.”
The IRA is also laudable for its historic $385 billion investment in tax credits for domestic clean energy production to combat climate change devastation, creating up to nine million new good-paying jobs and reducing carbon emissions 40% by 2030.
It will provide incentives to manufacture new car batteries domestically, and invest hundreds of billions of dollars in tax credits for clean energy like solar and wind, clean transportation, and de-carbonized buildings.
The new methane Emissions Reduction Program will improve methane monitoring, fund environmental restoration, help communities reduce pollution’s health effects, and increase climate resilience.
Urban parks and resilience for tribal communities will see significant funding, including $60 billion in new resources for environmental justice communities’ legacy pollution clean-up efforts, and rural communities will be able to take advantage of lower cost and cleaner energy sources.
The new greenhouse gas reduction fund will provide low-cost financing for clean energy projects, with at least 60% of the benefits of these investments flowing to disadvantaged communities.
For consumers, this means additional tax credits that encourage purchases of energy efficient homes, vehicles, and appliances, reducing energy costs and utility bills.
According to FactCheck.org:
“Notably, there is an expansion of an existing tax credit of up to $7,500 for income-eligible individuals who buy qualifying electric vehicles. For joint tax filers to be eligible, their adjusted gross income cannot be more than $300,000; for a head of household, it’s $225,000, and for other tax filers, it’s $150,000.
“In addition, the bill offers a tax credit of up to $4,000 for purchases of certain used electric vehicles. To get the credit, joint tax filers must have an AGI [adjusted gross income] below $150,000. For a head of household or other tax filer, the AGI cutoffs are $112,500 and $75,000, respectively.
“There is also $9 billion for home energy rebate programs aimed at retrofitting homes and appliances to be more energy efficient.”
The Guardian reported:
“An $8,000 rebate will be available to help install heat pumps, which are efficient electrical devices that both heat and cool homes, with a further $1,750 for water heating. A slightly smaller tax break can be applied for purchases of clothes dryers or an electric cooker, such as a high-efficient induction stovetop.
Tax credits that cover 30% of the cost of home improvements that reduce heat leakage, such as upgraded windows and doors, are also part of the bill, with a $1,600 rebate to insulate and seal a house, and a $2,500 tax break for improvements to electrical wiring.”
This bill will also improve Americans’ overall health by capping Medicare recipients’ insulin costs at $35 per month and allowing Medicare to negotiate lower prescription drug prices.
Some seniors currently pay more than $10,000 a year out of their own pockets for expensive prescription drugs. This legislation caps seniors’ out-of-pocket costs at $2,000 per year.
13 million families covered under the Affordable Care Act will see health insurance costs decrease by an average of $800 a year, and three million more Americans will now be insured.
Jamal Lewis, director of policy partnerships at the clean energy research organization Rewiring America, explained:
“[Household savings] will be reflected in lower monthly energy bills, reduced bill volatility and a lessening of disproportionately high energy burdens within disadvantaged communities.”
The only reason republicans and the right-wing hate media carrying water for them oppose this law is because it helps the middle class and lower-income Americans, and requires more from the only constituents the GOP serve — the wealthy and corporations.
While it isn’t as robust as the initial Build Back Better bill, this is, without a doubt, a monumental piece of legislation that will transform America’s energy sector, and, more importantly, improve Americans’ lives.
Coupled with the “Infrastructure Investment and Jobs Act” signed into law in November, the Biden administration is proving what it really means to “make America great again.”