Biden’s Inflation Reduction Act could end up costing taxpayers nearly $5 trillion, study says

(Worthy Insights) – When former President Joe Biden’s signature Inflation Reduction Act (IRA) passed in 2022, it did so along party lines with not a single Republican voting for it. At the time, a Senate one-pager summarized the law as costing taxpayers $369 billion, based on Congressional Budget Office (CBO) estimates.

A new study from the Cato Institute finds that the law could cost as much as $4.67 trillion by 2050. That’s roughly 12 times the stated cost. The study also concludes that the subsidies are undermining innovation and driving investments toward subsidy farming rather than satisfying consumer demand.

“The government should not have a hold on the economy in such a way that it can truly distort entire markets, and that’s what the Inflation Reduction Act is,” Joshua Loucks, research associate with Cato Institute and co-author of the analysis, said in a video explaining the study. [ Source (Read More…) ]


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