CNBC host Joe Kernen mocked the Inflation Reduction Act on Wednesday, doubting the legislation will tackle inflation during a conversation with the St. Louis Federal Reserve President James Bullard.
Kernen pointed to the large spending included inside the reconciliation package proposed by Senate Majority Leader Chuck Schumer and Democratic West Virginia Sen. Joe Manchin, doubting it will solve the nation’s record high inflation, which rose 9.1% in June.
“So what are we doing now? And when you hear that they named it the Inflation Reduction Act, do you just laugh out loud?” Kernen asked. “You know how Washington works, but do you see the sort of irony in tacking another $700 billion with tax increases and spending involved? Does that in any way look like an inflation reduction bill to you?”
Bullard mentioned the University of Pennsylvania Wharton budget model, which claimed that the package will not reduce inflation, and said the central banks are responsible for tackling inflation due to it being a global phenomenon. He further noted that the bill visibly intends to raise taxes. (RELATED: You’re At 33% Approval At This Point’: CNBC Host Calls Out Biden Economic Adviser For Using ‘Putin Price Hike’ Scheme)
“As far as I can tell, this does not seem like pure deficit spending, it does seem like they’ve got some tax increases in there and it sounds like Senator Manchin insisted on that. So, whether that would go through the Congress or not, I don’t know,” Bullard said.
The package intends to lower prescription drug costs and invest $369 billion in green energy to tackle the price of oil and gas. It additionally includes a 15% minimum tax on corporations making at least $1 billion per year, and a report by the Joint Committee on Taxation (JCT) said the bill will raise taxes on individuals making less than $400,000 per year.
Manchin said the JRC’s report is a “pure, outright lie” during a Tuesday interview with Fox News’ Harris Faulkner. The West Virginia Democrat said the bill will lower costs by ramping up production, including oil by constructing pipelines and drilling.