• The Political Insider
  • Posts
  • CBO: Inflation Reduction Act Will Cost $428 Billion More Than Originally Thought

CBO: Inflation Reduction Act Will Cost $428 Billion More Than Originally Thought

February 15, 2024

The total cost of the Inflation Reduction Act, passed in 2022, has always been something of a mystery, except that the U.S. is definitely spending billions upon billions that Americans simply don’t have.

The bill didn’t even have anything to do with inflation – it was always an energy bill. Even Joe Biden now regrets its title.

Regardless, the Congressional Budget Office now says it’s going to cost even more than what was originally thought.

To the tune of $428 billion more.

$428 BILLION?!?

As is usually the case, the costs that are bandied about by proponents fall far short of the actual real-world costs.

The Hill reports, “The cost of the Inflation Reduction Act’s energy and climate provisions is now expected to be significantly higher than previously projected, at least partially because of greater-than-anticipated investment in climate-friendly technology.”

The story continued:

The Congressional Budget Office (CBO) revised its projections this week, greatly increasing how much it believes the law’s energy tax credit-related provisions will cost…

One of the factors the agency cited is a greater number of people expected to claim tax credits for electric vehicles, as proposed environmental regulations push the market in that direction and the Treasury Department issues flexible guidance for the credits.

Another is more investment than expected in battery manufacturing and wind and solar power development.

In total, the CBO says the law’s energy provisions will cost $428 billion more than originally projected.

That number is jaw-dropping. The fact that the original score was off by half a trillion dollars is equally jaw-dropping.

That the bill did nothing to address inflation, which is worse than expected and rising, is not jaw-dropping.

This is insanity

The United States national debt is currently $34 trillion. Social Security and Medicare aren’t in the best shape. America has sent billions to Ukraine with Congress wanting to send billions more right now. We send billions to the Middle East. Many in Washington are eager to launch another war in Iran that would no doubt run up the debt to unimaginable heights.

$428 billion might be chump change in Washington but eventually this spending is going to have to end. Inflation has already been one price Americans have had to pay for these spending sprees, ironically, in this case, for legislation that originally promised to reduce inflation.

This can’t keep happening, as Washington doesn’t even bat an eye.

Now is the time to support and share the sources you trust.The Political Insider ranks #3 on Feedspot’s “100 Best Political Blogs and Websites.”