PRESS RELEASE: DEBUNKING THE FALSE ATTACKS ON THE INFLATION REDUCTION ACT

FOR IMMEDIATE RELEASE 
August 4, 2022

Contact: 
Jack Miller, Communications Director
[email protected]

DEBUNKING THE FALSE ATTACKS ON THE INFLATION REDUCTION ACT

Big Pharma & Fossil Fuel Industry Are Working Hard to Stop Bill that Lowers Costs for Prescription Drugs, Energy, and Healthcare 

WASHINGTON, D.C. — The Inflation Reduction Act of 2022 would be another historic win for the American people and the Biden Administration. Naturally, special interests like Big Pharma and the fossil fuel industry are lining up to sabotage the bill. Let’s take a look at some of the absurd claims they’ve made…

Debunked Attack #1: “The Inflation Reduction Act would raise taxes on middle class Americans.”

Verdict: False.

  • The Inflation Reduction Act LOWERS costs for families, from prescription drugs, to health care premiums, to energy costs. It’s paid for by raising taxes on corporations and multi-millionaires – not one penny from any household making less than $400,000 per year.

  • Treasury Secretary Janet Yellen: “The legislation would either reduce or have no effect on the taxes due or paid by any family with income less than $400,000… In fact, the clean energy tax credits and the expanded premium tax credit will cut taxes for millions of Americans.”

  • Five former Treasury secretaries, including Hank Paulson, who served under President George W. Bush: “Taxes due or paid will not increase for any family making less than $400,000/year. And the extra taxes levied on corporations do not reflect increases in the corporate tax rate, but rather the reclaiming of revenue lost to tax avoidance and provisions benefitting the most affluent.

  • 126 economists signed a letter, including former John McCain advisor Mark Zandi, former CBO Director Doug Elmendorf, and Nobel prize-winning economist Joseph Stiglitz: “The revenue raised to finance them would come exclusively from wealthy individuals and corporations… And because it is deficit-reducing, it does so while putting downward pressure on inflation.” (That’s a lot of economists!)

  • Author of the bill, Senator Joe Manchin, when asked if the Inflation Reduction Act raises taxes on the middle class: “Totally wrong. Totally, absolutely wrong.” The bill will adopt “a tax policy that protects small businesses and working-class Americans while ensuring that large corporations and the ultra-wealthy pay their fair share in taxes.”

  • And finally, just read the bill. Here’s page 39…

 

Debunked Attack #2: “The Joint Committee on Taxation’s report shows middle-class taxes are going up.”

Verdict: False.

  • The New York Times: “Last weekend, Republican senators released a companion analysis from the Joint Committee [on Taxation] that they said was proof the entire bill would raise taxes on the middle class, though it did not actually show middle-class Americans would pay more taxes under the plan.”

  • NYT: “Despite Republican claims, the new legislation would be only a modest corporate tax increase, Congress’s Joint Committee on Taxation found.”

  • Intelligencer: “The JCT report simply does not find this at all. The false assertion that Manchin’s deal raises taxes on the middle class combines a series of fallacies… the study, performed at the behest of Senate Republicans, analyzes only a portion of the bill. It omits all the benefits from the tax credits for health care, green energy, and lower prescription drug savings.” Read more here for a full take-down.

  • Ranking Republican on the Senate Finance Committee Mike Crapo admitted to the press Republicans were lying about the bill’s impact on taxes: “technically it’s not raising their tax rates.” Oops!

  • Center for American Progress: “Critics of the Inflation Reduction Act have used a misleading and incomplete analysis to claim that the breakthrough legislation would be a “tax increase on everyone”… Contrary to critics’ claims, the IRA does not raise taxes on individuals earning less than $400,000 or on any but the largest and most profitable corporations.”

Debunked Attack #3: The Inflation Reduction Act would take $300 billion from Medicare.

Verdict: Laughable. (And also False.)

  • Fact checkers have already tested this claim that the bill “takes $300 billion from Medicare.” It’s a lie. Period.

  • The prescription drug package in the Inflation Reduction Act will save Medicare and taxpayers nearly $300B by lowering drug costs.

    • Big Pharma is currently running ads with this lie, showing just how low they’re willing to stoop to protect their profits while Americans pay through the nose.

    • The savings to Medicare would be money not going into Big Pharma’s pockets, hence why they’ve flooded the airwaves with lies in a desperate attempt to scare seniors.

About Invest in America

Invest In America is a national rapid response operation advocating for robust public investment to rescue the economy from the COVID crisis and create prosperity for the future, and to fight back against fear-mongers who use deficit concerns as a scapegoat to starve American communities and businesses of resources.

The operation consists of two components: Invest in America, the charitable and public education arm, which is a fiscally sponsored project of Economic Security Project funded by the William and Flora Hewlett Foundation and Economic Security Project co-chair Chris Hughes; and Invest in America Action, the advocacy and social welfare arm, which is a fiscally sponsored project of Economic Security Project Action funded by Chris Hughes and the Omidyar Network.

Learn more at InvestInAmericaNow.com and @InvestNowUSA, and InvestinAmericaProject.com.

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