The passage of the Inflation Reduction Act over the weekend brings the total amount of spending in the pipeline by congressional Democrats to around $3.5 trillion since President Joe Biden took office, with the imposing tally coming as Americans struggle with an inflationary cost-of-living crisis.
The package, which Republicans have panned as a tax-and-spend bonanza and the nonpartisan Congressional Budget Office (CBO) said would have a negligible impact on inflation, next goes to the House for consideration.
Assuming the bill clears all remaining legislative hurdles and gets signed into law by the president, this would bring the total amount of big-ticket spending by congressional Democrats under Biden's watch to nearly $3.5 trillion.
'Making History'While CBO told Senate Majority Leader Sen. Chuck Schumer (D-NY) in an Aug. 6 letter (pdf) that it had not finalized all its estimates for every title in the bill, the ones that it did analyze show that the legislation would increase budgetary deficits during the 2022–31 period by a total of around $115 billion.
In remarks following the passage of the Inflation Reduction Act, Schumer called the legislative process a “long, tough and winding road, but at last, at last we have arrived.”
'Rob American Families'Republicans have panned the measure, arguing that its business tax hikes would hurt job creation and, contrary to the bill's name and stated intention, would actually add to inflationary pressures.
"Democrats have already robbed American families once through inflation, and now their solution is to rob American families a second time," Senate Minority Leader Mitch McConnell (R-Ky.) said on the Senate floor, arguing that the bill would eliminate jobs.
The think tank also echoed the CBO's view on the new bill's impact on inflation, saying that "on balance, the long-run impact on inflation in particularly uncertain, but likely close to zero."