|
August 11, 2022
Dear John,
Spend, Spend, Spend No Matter What?
This week, the Speaker of the House interrupted the August Work Period in our districts and states, calling all Representatives to vote on the so-called “Inflation Reduction Act”. The $745 billion bill does little to actually reduce inflation – it may just make things even worse. July’s 8.5% inflation report shows a slight cooling of inflationary pressure. Passing this bill could reverse the little bit of progress we have made.
I am voting no on this bill, bringing my opposition of record spending to a total of $10 trillion since President Biden took office. We can’t just keep spending more money, especially when monthly economic reports show continuing inflation and a recession possibly looming. I’m open to some policy ideas in this legislation – for example some of the drug pricing policies are interesting – but the overall price tag is too high, and it was rushed through in the last few weeks.
Fiscal policies should be thoughtful. There should be give and take from both sides, analysis done on the long-term spending impacts, and time to decipher whether or not taxes on the middle class would go up.
The Inflation Reduction Act:
- Authorizes $80 billion for the IRS
- Spends over $350 billion on environmental policies
- Raises taxes on businesses who are already raising their prices—passing even higher prices onto consumers
- Is estimated by the Congressional Budget Office (CBO) to only reduce inflation by 0.01% at best in 2023
- Raises taxes on Americans in every income bracket
- Will likely increase costs for prescription drugs and health care insurance premiums
Increasing taxes and retail prices for hard-working Americans will only make it harder for families to make ends meet. 94% of South Dakotans are already experiencing inflation. In just about every meeting I take with South Dakotans, they mention how inflation is impacting them, their business, their family, or their community.
I have opposed spending package after spending package pushed by Speaker Pelosi and President Biden that have consistently driven up inflation, increased prices on goods, services, energy, and everything in between. Spending more money now will continue to kick the can down the road—causing almost everyone to deal with the impacts of inflation for much longer.
I am focused on solving our supply chain crisis, increasing our energy independence, and supporting our small businesses to mitigate the impact of inflation on American consumers and business owners. We need to pass commonsense, realistic solutions that will actually work. Policies that bring down high prices in the grocery store and at the gas pump, get Americans back to work, and strengthen our economy. |
