On Tuesday, my Subcommittee on Health Care and Financial Services joined Congressman Eric Burlison's (R-MO) Subcommittee on Economic Growth, Energy Policy, and Regulatory Affairs to investigate the true impact of President Biden's so-called Inflation Reduction Act (IRA) on American energy and healthcare.
We took a hard look at how the Biden administration weaponized the IRA to raise taxes, push extreme Green New Deal policies, and increase Medicare premiums for seniors. Instead of reducing inflation, the law has wasted billions of taxpayers' dollars and funneled money toward radical climate priorities, while ignoring the waste, fraud, and abuse in its funding streams.
Following the hearing, House Republicans passed the One Big Beautiful Bill Act, which includes long-overdue reforms to the IRA. Our bill ends $500 billion in Biden-era tax breaks and special interest giveaways to wealthy corporations and China.
During the hearing, I questioned Dr. William McBride, Chief Economist at the Tax Foundation, about who is really benefitting from IRA subsidies and who is getting hurt:
Subcommittee Chairman Grothman: “Could you describe who’s largely getting the benefits of these tax credits in the so-called ‘Inflation Reduction Act’? Who’s paying the price here? Who’s paying the price and getting their taxes reduced, Dr. McBride?”
Dr. McBride: “…You look around, you know, ‘Who’s buying solar panels?’ Who’s buying electric vehicles?’ Those are high income people, and you can see that with your own eyes. The data and the studies support that. For that matter, a lot of the credits go to businesses.”
…
Subcommittee Chairman Grothman: “These energy subsidies are responsible for enormous costs. Overall, insofar as [they drive] up the cost. Who is going to pay the price for that? Is this another thing that’s kind of regressive tax on the average guy, or how would you describe who’s paying the price for this?”
Mr. Lieberman: “There’s almost nothing in the Inflation Reduction Act that’s geared toward lowering energy prices, so energy prices will go up. One thing I would add, for example, is that there’s a lot of provisions in there geared toward the discouraged use of natural gas and making homes all electric. Well, natural gas is three times cheaper than electricity on a per unit energy basis, so it’s one example where climate policy is very much at odds with pro-consumer policy.”
Watch the full hearing HERE.