Up & Coming Weekly

August 23, 2022

Up and Coming Weekly is a weekly publication in Fayetteville, NC and Fort Bragg, NC area offering local news, views, arts, entertainment and community event and business information.

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4 UCW AUGUST 24 - 30, 2022 WWW.UPANDCOMINGWEEKLY.COM e U.S. House and Senate voted along party lines to pass the latest tax and spend bill, "e Inflation Reduction Act of 2022," (IRA) sending it to President Biden's desk. On Aug. 16, with Biden's signature, the bill became law. Democrats trumpeted the bill as a way to tax the rich, reduce the deficit and clean up the environment. Unfortunately, however, the only "win" is political. e Democrats can now say they passed elements of Biden's agenda just in time for the midterm elections. But the bill is a lose-lose for the American people, for many reasons, including the following: e bill will not reduce inflation, and instead will likely increase it e IRA would do nothing to reduce inflation. Analysis from Penn-Wharton revealed this bill would actually create larger budget deficits in the first few years. e impact on inflation will be "statistically indistinguishable from zero." As I wrote previously, the bill uses gim- micky math to show a deficit reduction and claims inflation alleviation, but the reality is that the spending ramps up right away, while much of the revenues to reduce the deficit are backloaded. Democrats will undoubtedly want to extend all of their green spending initiatives and Obamacare subsidies beyond the timeline in the bill, driving up the actual total cost even more. By raising taxes on corporations and reducing the productivity of capital, the bill could actually shrink the economy, also adding to inflation. e poorest house- holds are disproportionately harmed by inflation. Coupled with the increased tax burden this bill brings, the poor will suffer disproportionately. It will not help the environment Rep. Deborah Ross (D-NC) said the act "represents the most significant invest- ment to combat climate change in U.S. history." She is right that this is the highest climate spending ever. Unfortunately, the wasteful spending does nothing to impact global warming. In fact, using the United Nations' model, one expert found the bill, "would cause the world's temperature in 2100 to be 0.028 degrees Fahrenheit cooler; at worst, only 0.0009 degrees Fahrenheit cooler" accord- ing to an article published by the Hoover Institution. e Democrat's stated goal regard- ing IRA's climate provisions is to "reduce carbon emissions by roughly 40 percent by 2030." Our current trajectory is already projected to reach a 24 to 35% emissions reduction in that time. Climate experts consider the bill to be merely "symbolic." And the government's attempt to prop up electric vehicles and other green technology in opposition to consumer preferences (EVs still make up just 2% of car sales) is a handout to the wealthy. Even with significant subsidies, EVs will remain out of reach for most low-and middle- income households, and the subsidies will enable EV sellers to raise prices further. Unfortunately, the climate provisions in this bill amount to little more than growing political control. It will increase tax burdens and slow growth President Biden repeatedly promised to not raise taxes on those making $400,000 or less. In quintessential Washington fashion, this fails a fact check. First, the reckless, government-induced inflation has already resulted in reduced buying power for those making less than $400,000. e average person's real in- come has declined $3,000 per year due to inflation according to economist Stephen Moore. Under the IRA, major tax changes will be passed down to workers, with the poorest households seeing the biggest increase in their tax burdens. e nonpartisan Joint Committee on Taxation shows that taxpay- ers in each income category will face the burden of a tax increase. ose making less than $10,000 would see a 3.1% increased tax burden in the first year, while those making over $1 million would see a 1.9% increased burden. In future years, the tax burdens are estimated to also fall hardest on the poorest households. Democrats want to raise taxes on busi- nesses as the nation weathers a reces- sion and record inflation. Even President Obama warned in 2009 that "e last thing you want to do is to raise taxes in the middle of a recession." e bill implements an egregious, corporate alternate minimum tax, often called the "book" tax, requiring companies to calculate their tax liability twice, once with the standard tax code and once using the new book tax. Companies must pay the larger amount. Firms need to invest to remain competi- tive. Generally, a firm would deduct their investment costs in the same year. Under the book tax, however, they lose this ad- vantage as they have to deduct an invest- ment over time. is is devastating to the country's already impaired private investment, which is critical to economic growth. In the latest quarter, GDP fell 0.9% according to the advance estimate from the Bureau of Economic Analysis. is was driven by a weakened investment. Domestic private investment decreased 13.5% in the second quarter. e Biden Administration is engineering further economic chaos. It will reduce innovation in life saving drugs e bill also claims to anticipate raising $288 billion in drug pricing reform. e IRA will have the government intervene and set Medicare prices for the top ten most expensive drugs, with that list grow- ing in the future. Price controls (read "government coer- cion") inhibit innovation and reduce sup- ply. Without research and development, we will have fewer drug approvals and greater loss of life. A University of Chicago issue brief found the IRA "will reduce revenues by 12.0 per- cent through 2039 and therefore that the evidence base predicts that R&D spending will fall about 18.5 percent, amounting to $663 billion." It will supersize the IRS to agress the middle class e bill claims to create $124 billion in new revenue by expanding the IRS. Inter- estingly, the bill will spend $3.2 billion to "provide taxpayer services, including pre- filing assistance and education" but spend $45.6 billion "to conduct criminal investi- gations (including investigative technol- ogy), to provide digital asset monitoring and compliance activities." e argument: "if you don't commit tax fraud, you don't have to worry" is a false dichotomy. History shows us that the IRS, like all government agencies, is prone to corruption and scandal. Moreover, IRS audits, no matter the verdict, are time consuming, expensive and altogether demoralizing. Senator Mike Crapo (R-ID) attempted to add an amendment to shield taxpayers making under $400,000 from increased IRS probing. Democrats shot it down. Why? ey want to squeeze the middle class for even more revenue to fund their spending problem. Conclusion In 1788 Jefferson explained what is very true today: "e natural progress of things is for liberty to yield, and government to gain ground." Americans will not be hoodwinked by the promises from the Big Government left. Already, inflation has taught everyone that spending has consequences. Working families know they are seeing less income because of the left's disastrous policies. e Inflation Reduction Act only fuels the federal government's insatiable appe- tite for more revenue. Big Government will never be the answer. STAFF PUBLISHER Bill Bowman Bill@upandcomingweekly.com OPERATIONS DIRECTOR Paulette Naylor accounting@upandcomingweekly.com MANAGING EDITOR April Olsen editor@upandcomingweekly.com ASSISTANT EDITOR Hannah Lee assistanteditor@upandcomingweekly. com ART DIRECTOR Courtney Sapp-Scott art@upandcomingweekly.com GRAPHIC DESIGNER Isaiah Jones graphics@upandcomingweekly.com STAFF WRITERS Alyson Hansen Ashley Shirley Kathleen Ramsey Jason Brady R. Elgin Zeiber Chayenne Burns CONTRIBUTING WRITERS Paige Terryberry, Margaret Dickson, John Hood, Pitt Dickey, Ben Sessoms, Jami McLaughlin, D. G. Martin, Dan Debruler COVER Design by Isaiah Jones Cover photo courtesy of Tuesday's Gone MARKETING ASSOCIATE Linda McAlister linda@upandcomingweekly.com DISTRIBUTION MANAGER/SALES ADMINISTRATOR Laurel Handforth laurel@upandcomingweekly.com Up & Coming Weekly www.upandcomingweekly.com 208 Rowan St. P.O. Box 53461 Fayetteville, NC 28305 PHONE: 910-484-6200- FAX: 910-484-9218 Up & Coming Weekly is a "Quality of Life" publication with local features, news and information on what's happening in and around the Fayetteville/Cumberland County community. Published weekly on Wednesdays, Up & Coming Weekly welcomes manuscripts, photographs and artwork for publication consideration, but assumes no responsibility for them. We cannot accept responsibility for the return of unsolicited manuscripts or material. Opinions expressed by contributors do not necessarily reflect the views of the publisher. The publisher reserves the right to edit or reject copy submitted for publication. Up & Coming Weekly is free of charge and distributed at indoor and outdoor locations throughout Fayetteville, Fort Bragg, Pope Army Airfield, Hope Mills and Spring Lake. Readers are limited to one copy per person. © 2020 by F&B Publications, Inc. All rights reserved. Reproduction or use of editorial or advertisements without permission is strictly prohibited. Various ads with art graphics designed with elements from: vecteezy.com and freepik.com. PUBLISHER'S PEN Association of Community Publishers Five ways the Inf lation Reduction Act harms Americans by PAIGE TERRYBERRY PAIGE TERRYBERRY, Senior Analyst for Fiscal Policy, John Locke Foundation. COMMENTS? Editor@upandcomingweekly.com. 910-484-6200

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