The Truth About The Inflation Reduction Act

The so-called "Inflation Reduction Act" is the Biden administration's attempt to reduce inflation... the problem is it has nothing to do with inflation. 

Observation: Governments are excellent at branding spending projects and bills that expand their powers. The "Patriot Act", and the "No Child Left Behind Act" come to mind. 

So what's included in the Inflation Reduction Act? 

Here is a breakdown of the bill that was recently passed into law: 

  • Funding for the IRS to hire 87,000 new employees: As you can imagine, an army of IRS agents is not required to audit and monitor our country's billionaires and millionaires... Sadly, these new IRS agents will almost certainly be used to target small business owners

  • Creation of a minimum corporate tax rate: Corporations with over $1 billion in revenue will face a minimum tax of 15%, and stock buybacks will have a 1% excise tax applied. 

  • Environmental spending and incentives: The administration is investing taxpayers into energy projects and creating new tax incentives for consumers and companies to adopt green technology. 

  • Prescription drug reform: The bill empowers Medicaid to negotiate prescription drug costs. This is likely the only part of the bill that may reduce consumer costs. 

So as you can see, the bill has nothing to do with fighting inflation. 

The real crime of inflation is that we, as Christians, are set up to fail when it comes to abiding by God's commands and basic finances. The Bible instructs us to save our money, but the system mankind has created punishes us for saving our funds. 

The Biden administration ought to examine the principles of Sound Money and consider policies that would immediately reduce inflation. Policies such as... 

  • Lifting restrictions on offshore drilling.
  • Stop the Fed from further increasing the supply of money.
  • Passing a balanced budget and stop contributing to our national debt
  • Lifting tariffs and trade restrictions on commodities and household items with shortages

Unfortunately, the federal government would rather find methods of masking the effects of inflation rather than examining the root cause. 

Don't be fooled by the "Inflation Reduction Act."

Inflation is here to stay for now.