The massive pile of green tax breaks Joe Biden jammed into the Inflation Reduction Act will cost multiples of the original sticker price — further imperiling America’s fiscal future.
The list price for IRA’s green tax breaks was $271 billion over the next decade.
Horrible enough, but the reality is far worse.
New analyses show the cost to be far higher.
Goldman Sachs pegs the true number at north of $1 trillion (yes, you read that right), while bean-counters at the Brookings Institution — hardly a friend of the GOP — peg it at $780 billion.
What’s driving the vast difference between the stated cost and the true number?
In large part, tax credits around electric vehicles and advanced manufacturing — two industries beloved by wealthy Dems, and rife with politically connected executives.
Goldmans Sachs sees the EV credit exploding from a projected cost of $14 billion to almost $393 billion, an increase of 2,700%. The Brookings figure is almost identical.
On advanced manufacturing, it skyrockets from $31 billion to $193 billion, a jump of 522%.
This absolutely blows up the absurd claim that the IRA will have a net negative impact on our federal deficit over the next 10 years — even with the law’s massive new tax hikes.
And the bad news comes after Biden has already added $5.6 trillion to our public debt, while the budget proposal he dropped in March would drive national debt to a crushing $51 trillion by 2033.
Even if the IRA were to work as originally promised, it would (as even the White House now admits) have only a trivial effect on inflation: lowering it by a third of a percentage point, 10 years from now.
Meanwhile, the biggest gainers from the green subsidies are financial institutions — they take home three times as much in benefits as any other sector. So it’s hard to believe that the subsidies will end up doing much good for the climate, either.
It all boils down to a huge gift to the fat cats the Democrats supposedly despise, rolled up in green posturing, at the expense of the American people.
Wonder how long it’ll take all the sincere climate warriors to realize they got conned, too.