On Sunday, all 50 Senate Democrats voted in unison to pass the so-called Cut Inflation Act, the Biden administration’s big tax and spending bill that will unambiguously undermine the economic freedom of America.
The agreement between Senate Majority Leader Chuck Schumer, DN.Y., and Sen. Joe Manchin, DW.Va., resurrected key elements of the euphemistically named President Joe Biden’s Build Back Better plan. The final vote on what should be called the Build Back Broke Bill was 51 to 50, with Vice President Kamala Harris casting the deciding vote.
The Inflation Reduction Act is the legislative embodiment of big government socialism that undermines America’s financial health and overall economic freedom.
If properly titled, it would be the Curtailed Economic Freedom Act.
In the midst of a deepening cost of living crisis, with inflation up more than 9% year-on-year, the Inflation Reduction Act would do great harm to our economy by imposing tax increases, manipulative federal subsidies and price controls. on every American family.
The bill passed by the Senate would deepen the deepening recession, continue to lower household incomes and continue to raise the general level of prices.
In other words, America’s already deteriorated level of economic freedom and vitality will be further weakened by bad policy choices that were knowingly made.
As my colleagues at The Heritage Foundation have succinctly noted:
The Biden administration and its liberal allies in Congress have done everything they can to impose new burdens and bloat the government.
The result was the subsequent inflationary crisis and now a recession.
Instead of heeding the economic red flags, they came up with this bill, which is identical in purpose and philosophy to what has created the current economic mess.
If enacted, this bill would deepen the economic crisis and lead to longer and much more painful stagflation.
(The Daily Signal is the medium of the Heritage Foundation.)
For more than a quarter century, The Heritage Foundation’s annual Index of Economic Freedom has measured the impact of free enterprise underpinned by the rule of law, limited government, regulatory efficiency and open markets. in countries around the world. The strongly positive correlation between a nation’s level of economic freedom and the general standard of living and competitiveness of its citizens highlights how essential economic freedom is in practice.
Yet after scoring high in 2006, the United States fell from the “free” to “mostly free” category in 2010. Economic freedom continued to decline, reaching an all-time low this year, placing the America behind 24 other nations. .
America’s economic freedom is under attack by massive government spending that is driving the country and its citizens into ever-increasing debt. The taxes that ultimately have to pay for the government’s unbridled spending transfer the freedom of choice from the individual to the government.
The latest example is the Inflation Reduction Act. According to Heritage research, the politically motivated tax and spending bill would raise taxes on Americans earning less than $400,000 a year, with the law disproportionately raising taxes on people earning less than $75,000 a year. year of 136 billion dollars.
Economic freedom is also eroded by many layers of politically motivated regulations. Contrary to what some politicians claim, America’s competitive position is not threatened because the federal government does not spend or regulate enough. Instead, the problem is that government has become too big in scale, scope, and power over people’s daily lives.
America needs limited government, not expansive and costly government, to ensure a transparent and competitive economic environment in which citizens enjoy the freedom and opportunity to prosper to the fullest extent possible.
As Chairman of the Heritage Foundation, Kevin Roberts underline“Support for the Inflation Reduction Act [Sen. Kyrsten Sinema, D-Ariz.]Manchin and Schumer is further evidence that the left has lost sight of the larger goal of public policy: to improve the lives of real Americans.
This should be the year to correct this regrettable and oft-trodden path of Washington policy-making, and now is the time to do so to restore America’s economic freedom.
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