Friday, September 30, 2022

Sen. Joe Manchin says Democrats’ bill won’t worsen inflation despite economic forecast

Sen. Joe Manchin III made the rounds on Sunday’s talk shows to reject the notion that Democrats’ new spending bill — the Inflation Reduction Act — would exacerbate inflation that is at its highest rate in four decades.

That is despite an independent analysis by the Penn-Wharton Budget Model finding it will “slightly increase” inflation until 2024 then decrease thereafter and a nonpartisan congressional committee concluding it would raise taxes on Americans across income brackets.

Mr. Manchin’s inflation concerns were what initially prompted him to oppose similar legislation just weeks earlier.

“I understand there’s a difference of opinion. But everybody, if they look at this bill objectively, we’re playing down $300 billion in debt,” the centrist West Virginia Democrat told ABC’s “This Week.” “The first time in 25 years.”

Mr. Manchin went on to highlight the energy and climate spending portions of the bill, such as boosting U.S. production of rare earth minerals and clean manufacturing.

“They’re not factoring any of that in,” he said of the economic forecast.

SEE ALSO: Sen. Joe Manchin won’t say if he wants Democrats to retain control of Congress

Mr. Manchin also has rejected the notion that the bill would increase taxes. He has argued that it would close loopholes that allow large corporations and wealthy individuals to pay at lower rates. 

The legislation’s 15% corporate minimum tax would affect about 200 of the country’s largest corporations with profits exceeding $1 billion that currently pay under the current 21% corporate rate.

The nonpartisan Joint Committee on Taxation has estimated that taxes will increase by $16.7 billion on taxpayers earning less than $200,000 and that at least half of new revenue raised would come from those earning less than $400,000.

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