Ecclesiastes 5:10 – “He that loveth silver shall not be satisfied with silver; nor he that loveth abundance”
Let’s Be Honest: Inflation Reduction Act
Let’s be honest about the Inflation Reduction Act! The name claims it will tame soaring inflation.
The bill will not pull down the inflation rate. The Inflation Reduction Act is a slimmed-down version of the Build Back Better bill.
The new bill makes the largest investment in combating climate change.
The bill will lower the cost of prescription drugs (by 2025*) and raises taxes on corporations.
Corporations with at least $1 billion in income will have a new tax rate of 15%. Taxes on individuals and households will increase. Stock buybacks by corporations will face a 1% excise tax.
The most significant provision of the Inflation Reduction Act will allow Medicare to negotiate the price of certain prescription drugs.
Medicare recipients will have a $2,000 cap on annual out-of-pocket prescription drug costs, starting in 2025.
The IRS will benefit from the bill. The bill invests $80 billion in the nation’s tax agency over the next 10 years.
Tax payers will not benefit from the bill. Medical insurance premiums will increase.
The impacts of inflation
The bill will have no impact on inflation. The Inflation Reduction Act will not reduce prices at all.
In fact, prices will remain current and increase in the future. The bill falls short of bringing immediate price relief to consumers.
Asking the largest corporations to pay their fair share will mean more job losses.
The White House dismissed claims the bill will hurt lower and middle-income Americans. We know this is not true.
The 755 page bill found here, foretells about price adjustments. The IRS will target small and medium businesses.
Larger corporations have resources to fight the IRS versus small & medium companies.
Conclusion
In other words, middle class taxpayers will face more audits by the IRS and pay more taxes.
The majority is right to be skeptical. The bill will make things worse.
The bill purpose lowering energy cost. Forcing people to buy a $50K electric vehicle will not suffice.
The reason prices will not improve is due to overspending. The government is printing money to oblivion.
Energy cost cannot go down. Pulling strings with the price of silver and gold is the same with energy.
Grocery stores will not reduce their prices. The bill says corporations are to “adjust” current cost!
Adjust, allow companies to justify higher prices. Best solution is to prepare for the inevitable.
DISCLAIMER: I am not a financial adviser. This site is for educational purposes only. It is imperative that you do your own research. I am sharing my opinion from personal research and experience with no guarantee of gains or losses on investments, finance etc.
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