As Congressional Republicans prepare their reconciliation package, the Taxpayers Protection Alliance (TPA) urges Congress and President Donald Trump to repeal the budget-busting provisions of the Inflation Reduction Act (IRA), such as its clean-energy subsidies. Last year, the Congressional Budget Office revised its estimates for the IRA’s energy-related tax credits, finding that they will cost $736 billion from 2024 – 2033, 170 percent more than the originally-projected $271 billion. When combined with the $132 billion in other energy-related direct spending, updated figures show over $1 trillion in potential savings by removing these provisions. The IRA has always been a big-government sham that never had anything to do with lowering inflation. It was a vehicle primarily to build out clean-energy infrastructure and manufacturing, and secondarily to secure other progressive priorities. The ten-year cost estimates of the green subsidies have soared after the law’s enactment, skyrocketing from a few hundred billion dollars to well over $1 trillion. The IRA’s true character is that of a massive corporate handout, and one that badly distorts the American energy and manufacturing sectors to boot. Moreover, the cost of these subsidies is exacerbated by harmful rulemaking from the Biden administration, such as the EPA’s tailpipe emissions rule, which President Trump can, and should, order the EPA to rescind. The fact remains that America faces a mounting debt crisis with soaring deficits. As Republicans compile their own reconciliation package for the 119th Congress, they should consider all avenues to reduce overall federal spending, starting with the clean energy subsidies in the IRA. Repealing these provisions would be a monumental win for consumers, taxpayers, and economic freedom. 
 
Trump’s Big First Day of Economic Policy 
 
On January 20th, shortly after taking his oath of office, President Donald Trump took his pen in his hand and put it to good use, initiating 46 executive actions before day’s end. These actions spanned a wide range of policy areas, with far-reaching repercussions for taxpayers and consumers. Many are excellent policy reforms; others will likely prove harmful.   Here is a sample of economically significant actions. 
 
The Campaign to Lower the Cost of Living 
 
Right off the bat, the Trump Administration recognizes that a lot of the economic woes that Americans endured in recent years are thew product of government overreach and regulation. From costly energy mandates to efficiency standards to painfully slow permitting regimes, regulations have added unnecessary friction that ultimately reduces the supply of goods that Americans need, such as houses, energy, and basic appliances.   With this executive order (EO), Trump has directed a mandate to all executive departments and agencies to “deliver emergency price relief.” However, the order lacks much detail on what such relief would look like. The deregulatory spirit present throughout the order provides encouraging signs that it will aim to dismantle unnecessary red tape, but the language remains vague. Hopefully, the new Administration will reverse the subsidy-heavy approach that characterized the past Administration and instead focus on unlocking America’s productive power by removing regulatory constraints. 
 
Energy! Energy! Energy! 
 
President Trump outlined specific rules and policies to stimulate energy exploration and production. He underlined the encouragement of energy production on federal lands, rare earth mineral production, and the need to enhance competitiveness through consumer choice. Deregulating to stimulate production in the energy sector is crucial to ensuring American prosperity. He also emphasized an agency review of regulations on natural resources. These are positive developments that emphasis economic growth through energy production, without the limitation on various resources. The emphasis on expediting infrastructure projects, simplifying permitting processes, and terminating mandates on electric vehicles is an additional positive push for diversity in energy production. Additionally, another EO was included to allow Alaska to develop its natural-resource production on federal lands.  While all these inclusions are positive in the push to expand energy production, President Trump chose to declare a “national energy emergency.” Although well-intended, the overuse of the term “emergency,” often used to unlock additional executive powers, poses a danger to America’s constitutional balance. Congress, not the Presidency, is the institution intended to drive policymaking. Moreover, even without declaring an emergency, President Trump has myriad options to rollback stultifying regulations imposed by Joe Biden and other former presidents. For example, President Trump’s orders signal that he is taking seriously the need to reform the federal government’s current dysfunctional permitting processes. He also can work with Congress to develop policy that falls outside the boundaries of his ordinary executive authority. President Trump also included an EO that withdraws wind energy leasing in the Offshore Continental Shelf (OCS) and prevents consideration for new or renewed wind-energy leasing within the OCS. This restrictive policy does not allow for the continued development of wind-energy production. Creating additional regulations for a specific energy resource is detrimental to innovation and supply chains. Maintaining a resource-neutral approach to energy production will benefit all American consumers.  President Trump should prioritize developing effective policy by working with lawmakers instead of declaring national emergencies. He has made clear that his administration will work to unleash energy production, which will benefit businesses and expand consumer choice. Allowing markets to function freely and choose winners and losers while reducing regulatory burdens and fostering technological development can provide a more robust and diversified energy future for the U.S.  
 
New Trade Investigations 
 
Trump campaigned on protectionism, and on Inauguration Day, he said he planned to lay 25-percent tariffs on Mexico and Canada on February 1.   However, just as President Trump’s mind is made up in favor of tariffs, the economic evidence is arrayed against them. Tariffs, like any tax, raise the price of the affected goods. This means higher input costs for American businesses and higher retail prices for American consumers. Moreover, despite the fascination it holds for many, the trade deficit is not, per se, a bad thing for the American economy — and it is unlikely to be reversed solely by tariffs. In fact, the trade deficit was higher in 2023, after about five years of heightened tariffs, than in 2017, the last full year Trump began imposing them. The trouble is that the tariffs Trump imposed in his first term — most of which Joe Biden retained and built upon — did far more harm than good. In terms of their effect on the economy as a whole, they lowered GDP, capital stock, and employment. In terms of their specific effect on American manufacturing, it seems likely that the 45th president’s tariffs stifled productivity. Likewise, the high costs that followed his steel and aluminum tariffs appear to have destroyed 75,000 American manufacturing jobs while saving less than 2,500 in the protected industries.  Tariffs do not, in fact, put America or Americans first. While the intent behind them (to strengthen the American economy) is noble, their effects are disastrous. TPA urges President Trump to reverse course on tariffs, which will impose economic costs, harm American businesses and consumers, and counteract the many economically beneficial parts of his agenda. 
 
America Withdraws from the World Health Organization 
 
The United States is once again leaving the World Health Organization (WHO). In his EO triggering the withdrawal, President Trump cited the organization’s “mishandling of the COVID-19 pandemic…and other global health crises.” He also criticized the WHO for failing “to adopt urgently needed reforms” and its “inability to demonstrate independence from the inappropriate political influence of member states.” Perhaps most notably, Trump scrutinized the U.S.’s financial contributions to the WHO, stating that the organization “continues to demand unfairly onerous payments from the United States, far out of proportion with other countries’ assessed contributions.” Specifically, he highlighted that China “contributes nearly 90 percent less [than the U.S.] to the WHO.”  The EO echoes Trump’s actions in 2020, when he initially pulled the U.S. out of the WHO, only for the decision to be reversed by then-President Joe Biden. Under the current withdrawal, the U.S. has one year to formally leave, with Trump directing Secretary of State Marco Rubio to oversee the American exit. 

The WHO has long benefited from U.S. participation and funding, despite its questionable track record. The organization faced significant criticism for its handling of the COVID-19 pandemic, including ignoring warnings from Taiwan in December 2019, falsely tweeting that there was “no clear evidence of human-to-human transmission” of the virus, and praising China, which downplayed the severity of the outbreak and suppressed its own doctors.  TPA has long called for reforms to the WHO, particularly with respect to its tobacco control policies. While the U.S. is not a party to the Framework Convention on Tobacco Control (FCTC), the WHO’s disregard for science in international discussions about reducing smoking rates is concerning. The FCTC undermines the sovereignty of its member states and promotes draconian, prohibitionist policies that often cause more harm than good.  

With the U.S. leaving the WHO again, there is hope that other countries will reevaluate their investments in what many see as a flawed and corrupt public health organization. 
 
One thing that seems certain is that the second Trump administration entered office primed and ready for action. It has a tremendous potential to reverse Joe Biden’s disastrous attempts at central planning and to restore economic freedoms that allow markets — i.e., individual Americans — to make their own opportunity and prosperity. President Trump and his team simply need in to lean into their impulse that the fundamental thing wrong with American government today is that it attempts to micromanage the choices of the American people, who are far more qualified for the task of running their own lives than any politician or bureaucrat. President Trump has many good ideas to boost the productivity and output of the American economy. TPA looks forward to four years working with Congress and members of the Trump administration to lighten the load of government that has been foisted on American taxpayers and consumers. 

Blogs:
 

Tuesday: Trump’s Big First Day of Economic Policy 

Wednesday: Taxpayer Watchdog Congratulates New FCC Chairman and Applauds FCC Nominee

Thursday: Taxpayer Watchdog Condemns Tariff Pledge

Friday: The Five Keys for Success for the Trump Administration AI Push

Media:
 
January 16, 2025: The Baltimore Sun (Baltimore, Md.) ran TPA’s op-ed, “Criminals have their sights set on Americans’ mail.”
 
January 16, 2025: RealClear Markets ran TPA’s op-ed, “The Fraudulent ‘National Security’ Case Against Nippon and U.S. Steel.”
 
January 16, 2025: Townhall ran TPA’s op-ed, “The Fraudulent Populism of Our Leaders.”
 
January 16, 2025: WBFF Fox45 (Baltimore, Md.) quoted TPA for their story on Governor Moore’s choice to increase taxes instead of making hard cuts to certain initiatives.
 
January 16, 2025: WJLA ABC (Washington, D.C.) quoted TPA for their story on Governor Moore’s choice to increase taxes instead of making hard cuts to certain initiatives.
 
January 17, 2025: The Northern California Record (Rolling Meadows, IL) quoted TPA in their article, “TPA president: Mass torts 'extract money from general economy'.”
 
January 17, 2025: The Blandin on Broadband mentioned TPA in their article, “Taxpayers Protection Alliance concerned about policies around BEAD funding.”
 
January 18, 2025: USSA News quoted TPA in their article, “No-bid contracts jeopardize taxpayer funds.”
 
January 18, 2025: World Net Daily quoted TPA in their article, “No-bid contracts jeopardize taxpayer funds.”
 
January 18, 2025: WZTA (West Palm Beach, Fla.) mentioned TPA in their segment about offering legislation to cut spending.
 
January 20, 2025: WBFF Fox45 (Baltimore, Md.) interviewed me for their story on Trump’s administration picks.
 
January 21, 2025: The Baltimore Sun (Baltimore, Md.) quoted me in their article, “'Pooling' again floated to help cut the deficit."
 
January 21, 2025: WBFF Fox45 (Baltimore, Md.) quoted TPA in their article, “Maryland's tax burden ranks among nation's highest, study finds.”
 
January 22, 2025: WBFF Fox45 (Baltimore, Md.) interviewed me for their story on Maryland’s taxes increase.
 
January 22, 2025: WJLA TV (Arlington, Va.) quoted me in their article, “Maryland's tax burden ranks among nation's highest, study finds.”
 
January 22, 2025: American Family News quoted TPA in their article, “Default threat greets Trump on first full day of second term.”
 
January 22, 2025: Inside Sources ran TPA’s op-ed, “Why a National Strategy is Crucial for AI Innovation.”
 
January 22, 2025: Broadband Breakfast ran TPA’s op-ed, “Shot Clock Reforms Will Help Close Digital Divide.”
 
January 22, 2025: OurCommunityNow quoted TPA in their article, “Maryland's tax burden ranks among nation's highest, study finds.”
 
January 22, 2025: WBFF Fox45 (Baltimore, Md.) quoted TPA in their article, “Baltimore City residents outraged over proposed water, sewage rate hikes.”
 
January 22, 2025: The Baltimore Sun (Baltimore, Md.) quoted TPA in their article, “Maryland’s tax burden ranks among nation’s highest, study finds.”
 
January 22, 2025: The Maryland Gazette (Annapolis, Md.) quoted me in their article, “Maryland’s tax burden ranks among nation’s highest, study finds.”
 
January 22, 2025: WBFF Fox45 (Baltimore, Md.) quoted me for their story on Governor Moore’s role in Maryland’s rising rates.
 
January 22, 2025: WBFF Fox45 (Baltimore, Md.) quoted me for their story on Governor Moore’s changes in Maryland.
 
January 22, 2025: WBFF Fox45 (Baltimore, Md.) quoted me for their story on Mayor Scott.
 
January 23, 2025: The Herald Journal (Logan, Utah) ran TPA’s op-ed, “Why a national strategy Is crucial for innovation.”
 
January 23, 2025: I appeared on 55KRC Radio (Cincinnati, Ohio) to talk about inflation and baby formula. Trump’s first few days.
 
January 23, 2025: WBFF Fox45 (Baltimore, Md.)  interviewed me for their story on how other states are adjusting their taxes, and how Maryland can compete.
 
January 23, 2025: Issues & Insights ran TPA's op-ed, "Elon Musk's Starlink Likely to Boom Under Trump's Administration."

January 24, 2025: Lindsey Stroud appeared on NewsTalkSTL (St. Louis, Mo.) to talk about the U.S. withdrawing from the World Health Organization.

January 24, 2025: RealClearMarkets ran TPA's op-ed, "Congress Should Harmonize Tax Exemptions for Charitable Giving."

 
Have a great weekend!



Best,

David Williams
President
Taxpayers Protection Alliance
1101 14th Street, NW
Suite 500
Washington, D.C. xxxxxx