Kevin Brady: “I include in the Record this Penn Wharton School of Business analysis that debunks the Inflation Reduction Act, showing…”

“I include in the Record this Penn Wharton School of Business analysis that debunks the Inflation Reduction Act, showing how this bill will reduce inflation by less than a tenth of 1 percent in the first 5 years, with zero impact on inflation after that. [From Penn Wharton] Senate-Passed Inflation Reduction Act: Estimates of Budgetary and Macroeconomic Effects key points PWBM estimates that the Senate-Passed Inflation Reduction Act, as written, would reduce cumulative deficits by $264 billion over the 10-year budget window. The Act would have no meaningful effect on inflation in the near term but would reduce inflation by around 0.1 percentage points by the middle of the first decade. These point estimates, however, are not statistically different from zero, indicating a low level of confidence that the legislation would have any measurable impact on inflation. Relative to current law, the Act would slightly reduce GDP in the first decade while slightly increasing GDP by 2050. These estimates include the impact of debt reduction, carbon reduction, and tax incentives on investments and working hours. Most, but not all, of the tax increases fall on higher income households. However, future generations, including higher-income households, gain from the improved economy, including a reduction in carbon emissions. introduction On Sunday August 7th, the U.S. Senate passed the Inflation Reduction Act of 2022 under FY2022 budget reconciliation instructions.…”