Now that the U.S. Senate has passed the bill to fight inflation, which the Congressional Budget Office and others suggest would have a negligible effect on inflation (”Senate Democrats approve big Biden deal; House to vote next,” Aug. 7), I would hope included in that bill would be some metrics tracking whether it is having any effect, positive or negative. The three-year extension of the Obamacare subsidies will likely be further extended as once a benefit is given, it is difficult to take it away. Any further extension will reduce anticipated revenues slated for deficit reduction.
Meanwhile, the 1% excise tax on stock buybacks assumes corporations will continue to buy back stock at the same rate. Any decrease in buy backs would also reduce expected revenues. The 15% minimum tax on billion-dollar companies is punitive because businesses legitimately take full advantage of the current tax code to minimize taxes. So don’t blame corporations when the tax code is the root cause of corporations not paying their “fair share” in any given tax year. The lion’s share of outlays is essential to placate the progressive greenies but will likely have little impact.
As for inflation and climate issues, the expansion of the Internal Revenue Service just shows the propensity to increase the size of government. This is especially where metrics are needed. One has to wonder who drafted this monstrosity when the more worthy parts of the bill could possibly be enacted on their own merits and maybe with some limited bipartisan support. But that is the modus operandi of tax and spend faction in Congress. In the haste to pass the 700-plus page bill, one also has to whether it will follow, in the famous words of Nancy Pelosi, that “we haveto pass the bill so that you can find out what’s in it.”
— Michael Ernest, Catonsville
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