“This Inflation Reduction Act is American Recession Plan 2.0,” Sen. Cassidy blasts Democrats’ plan to fight inflation

Cassidy says studies show the act will do little to bring down costs and could raise taxes.
Published: Aug. 3, 2022 at 6:09 PM CDT
Email This Link
Share on Pinterest
Share on LinkedIn

MONROE, La. (KNOE) - Louisiana Senator Bill Cassidy (R) is blasting Democrats’ plan to fight inflation.

“I think this Inflation Reduction Act so-called is American Recession Plan 2.0,” Cassidy told KNOE on August 3.

On July 27, West Virginia Senator Joe Manchin and Senate Majority Leader Chuck Schumer (NY) announced they reached an agreement on a reconciliation package addressing everything from climate change, energy production, corporate taxes, and prescription drug prices.

“Democrats say it will reduce pain at the pump and at grocery stores. Do you believe this legislation will do that for Louisianans?” KNOE asked Cassidy.

“I don’t, and more important objective analysis does not think it will do that either,” explained Cassidy. “The University of Pennsylvania Wharton School of Business did an analysis. In the first two years, it actually increases inflation, and after that, it does nothing else.”

The bill includes language to close loopholes ensuring corporations making over one-billion-dollars pay a minimum tax rate of 15%.

The non-partisan Joint Committee on Taxation (JCT) says that could be passed on to consumers.

“Fifty percent of the taxes will end up being paid by those making less than $200,000 a year,” Cassidy told KNOE. “That’s not Manchin. That’s not Cassidy. Those are the people that do the analysis.”

The White House says the JCT report does not consider some benefits of the bill, including rebates for energy bills, and electric vehicle incentives.

On energy, the bill does require the Interior Department to issue new oil and gas leases off the Gulf of Mexico, but Cassidy says that’s misleading.

“They were putting them in their back pocket to use as a bargaining chip when they came back to talk to Manchin,” said Cassidy. “So they lied to the American people when they said they were going to do everything possible to lower the price at the pump because they took lease sales back off the table they had already made.”

Finally, the bill would allow Medicare to negotiate certain prescription drug prices. Cassidy says that may bring down costs, but could also deter innovation.

“I’m about to invest billions in coming up with a cure for Alzheimer’s,” said Cassidy. “I may lose, but I may hit a bonanza. Wait for a second. The federal government can dictate my price. Wait a minute. I’m not going to do it.”

It’s important to note that the same study Cassidy cites from the Wharton School of Business also found the bill would reduce the federal deficit by $250 million by 2031.

Copyright 2022 KNOE. All rights reserved.