While Democrats celebrate the passage of the $739 Inflation Reduction Act, which will not reduce inflation at all, Americans who love freedom and free-market capitalism are in a state of despair.
The so-called Inflation Reduction Act was never intended to reduce inflation because it is designed to increase the size and scope of the federal government, breed more dependence upon Uncle Sam, and redistribute wealth from the middle class to the poor and already wealthy. In other words, the Inflation Reduction Act has more to do with increasing socialism in America than it has to do with making life better for the middle class by decreasing inflation.
For starters, the Inflation Reduction Act is a massive shot in the arm for the Internal Revenue Service (IRS) because it will increase the IRS’ budget by $85 billion over the next 10 years. The law also calls for the hiring of 87,000 new IRS agents, who are tasked with increasing “tax enforcement” via more audits of hardworking Americans. Much of the increased tax enforcement will be targeted towards Americans making less than $400,000 per year, despite constant promises by congressional Democrats and President Biden that the law will not raise taxes on Americans earning less than $400,000 per year. Make no mistake, wealthy Americans will evade these new tax enforcement provisions because they have the means to do so. This is how things operate in socialist countries. On the other hand, the vast majority of America’s taxpayers will end up footing the bill.
As if that is not enough bad news for everyday Americans, the new law also includes several stealth taxes on fossil fuels, a 15 percent minimum tax on large corporations, and a tax on stock buybacks that will be borne by hardworking Americans, not the so-called rich. Once again, this is part and parcel to socialist nations, wherein the rich get richer and the middle class get poorer.
On the spending side of the bill, the rich and poor will make out like bandits while everyday Americans will get shafted, again. The law includes billions in increased and extended subsidies for those on Obamacare. And, it includes hundreds of billions in hand-outs for green energy projects and subsidies for electric vehicles (EV). Of course, most average Americans cannot afford a pricey EV or solar panel on their roof, so most of these subsidies will benefit the wealthy exclusively.
Socialist regimes always claim to be concerned with improving the lives of the lower- and middle-classes, while painting the wealthy as the enemy. However, in reality, the opposite is true.
Throughout history, socialist governments have inflicted poverty among the masses, while those at the top and those in government live lavishly. In America, this disturbing trend is becoming reality due to the passage of anti-capitalist laws like the Inflation Reduction Act.
PHOTO: President of the United States Joe Biden. Photo by Gage Skidmore. Attribution-ShareAlike 2.0 Generic (CC BY-SA 2.0).
Chris Talgo ([email protected]) is an editor and research fellow at The Heartland Institute and a researcher and editor at StoppingSocialism.com.