Sen. Cassidy says Inflation Reduction Act would increase inflation

Published: Aug. 3, 2022 at 8:55 PM CDT
Email This Link
Share on Pinterest
Share on LinkedIn

Lake Charles, LA (KPLC) - Many Democratic leaders are hoping to push forward the Inflation Reduction Act, but some Republican leaders, including Louisiana’s U.S. Sen. Bill Cassidy, believe the bill has little to do with inflation.

The bill was introduced by Senate Majority Leader Chuck Schumer (D-NY) and Sen. Joe Manchin (D-WV) last week. They said it’s a proposal to pay down debt, fight climate change and lower health care prices.

“They’re all looking trying to find a discredit and they can’t because there’s nothing to discredit in there because we are just said, accelerating, getting products to mark producing more, paying down debt. Those are everything my colleagues on the republican side have always been for so,” Manchin said.

The act aims to bring on over a $300 billion total deficit reduction.

Republicans are pointing to what they call flaws, claiming it won’t help the economy’s current state, as the deficit reduction doesn’t come for another five years.

“It will actually increase inflation in the first couple years,” Cassidy said.

Cassidy points to a preliminary studies on the Inflation Reduction Act indicating some tax payers could end up coughing up more money.

“Those tax-payers making less than $200,00 will be responsible for $16.7 billion more in taxes in the first year and that amount will increase over the next 10 years,” Cassidy said.

However, Manchin does not agree, saying “that’s a lie” and the Democrats’ summary on the act reads “there are no new taxes on families making $400,000, or less.″

“I think time will tell this is a balanced bill that gives us industry, give us a pathway forward,” Manchin said. “It gives us ability to take care of ourselves to be an energy producer and also be able invest in technology future. And next of all, I mean, just some think it’s absolutely so needed for our country.”

Senators not seeing eye to eye - Cassidy said he believes the bill will have a negative impact on Louisiana citizens.

“Folks in Louisiana, when I speak to them, the utility bill, the gasoline bill, it’s coming down but still too high, inflation in general. They’re struggling. This will increase their out of pocket expense. That’s wrong,” Cassidy said.

He also told 7News the bill would increase the tax on a barrel of oil, which would ultimately increase the price at the pump.

Part of the bill’s package indicates it may increase the amount of oil leases let off the Gulf of Mexico.

“That would be a good thing,” Cassidy said. “But if you put it in perspective, these were leases that were already made and the administration pulled them back.”

Cassidy said he think this part of the package is being used as a “bargaining chip” and doesn’t trust this part of the package won’t be amended out of the bill.

“There’s already people on the progressive-environmental left that said they are going to oppose that revision,” Cassidy said.

The bill is expected to be voted on by the U.S. Senate this week. Democrats will need all 50 of their members plus Vice President Harris to pass the bill.

Copyright 2022 KPLC. All rights reserved.