Democrats have named their new tax-and-spend package the “Inflation Reduction Act,” but the party is battling economists who say the legislation won’t do anything to spare consumers from the rising cost of goods and services, and it could make things worse.
William McBride, vice president of federal tax and economic policy at the Tax Foundation, a pro-business, tax policy think-tank, said the legislation would have “close to zero impact on inflation.” He said it also could unleash a potentially disastrous domino effect on the economy and the government through tax increases that might end up reducing federal revenue.