Washington, D.C. — Today, the Center for American Progress released a fact sheet detailing how the Inflation Reduction Act (IRA) will strengthen the U.S. economy by fighting inflation and combating rising prices. The new analysis examines how the proposal will curb demand by cracking down on wealthy tax cheats and closing the tax loopholes that corporations and Wall Street fund managers exploit to avoid paying their fair share in taxes. It also looks at how historic investments in manufacturing and clean energy will increase supply and help bring goods to market.
The fact sheet finds that the IRA will reduce the budget deficit by more than $300 billion over the next 10 years; however, estimates suggest that this is a conservative estimate. As the piece explains, new resources for the IRS could well produce much more in revenue and further reduce the deficit and inflation. Finally, the piece explains how the IRA lessens pressure on the Federal Reserve to rapidly increase interest rates.
“The Inflation Reduction Act will create a stronger economy for all by fighting inflation, lowering costs for families, and supplementing measures to strengthen the labor market,” said Rose Khattar, associate director of rapid response and analysis on the Poverty to Prosperity team at CAP and co-author of the report. “Anyone who truly cares about the cost-of-living pressures facing Americans today must work to pass the Inflation Reduction Act as soon as possible.”
Please click here to read “The Inflation Reduction Act Brings Down Costs and Boosts Energy Supply, Cutting Inflation and Making Historic Investments” by Rose Khattar and Lily Roberts.
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