Lankford Calls Out Democrats’ Almost Comically Misnamed Inflation Reduction Act for What It Really Is | U.S. Senator James Lankford of Oklahoma

08.06.22

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WASHINGTON, DC – Senator James Lankford (R-OK) right now took his Democrat colleagues to process on their so-called “Inflation Discount Act,” which Lankford strengthened time and time once more in his remarks doesn’t scale back inflation and doesn’t lower the deficit. As a substitute, Lankford says this large tax-and-spend spree will result in elevated taxes on just about each American, a possible 17-percent enhance in pure gasoline costs, elevated inflation, decreased US manufacturing, punitive taxes on small companies, and better costs for Individuals general. Lankford cited quite a few particular examples of provisions within the invoice being offered to the American individuals as lowering inflation which can be nearly comically not related to inflation discount in any respect and certain will trigger the alternative.

One of many Democrats’ touted supposed drug-pricing methods gained’t kick in till 2026, two years earlier than Medicare is at the moment set to go bancrupt. The invoice would additionally develop the auditing personnel dimension of the IRS bigger than the Pentagon, the State Division, the FBI, and the Border Patrol, which implies extra audits for Individuals of all tax brackets, Lankford says.

Lankford continues to oppose Biden’s obsession with elevating taxes on companies, even through the worst inflation we’ve seen in 40 years, to pay for his radical climate-change agenda from the failed Inexperienced New Deal, which Oklahomans have made clear they don’t need.

Transcript:

Hans Christian Anderson in 1837 wrote a narrative about group suppose. It’s known as “The Emperor Has No Garments.” It begins with a pacesetter that actually cherished his garments. Some unsavory characters noticed that. They arrange a weaving loom to make the best garments within the land, however had been simply weaving air. There was nothing to it. The catch was that they had offered the story that if you cannot see what they’re weaving, you should simply not be sensible. So the Emperor sends a few his advisers to take a look at the weaving to see what it appears like. They see nothing, as a result of there may be nothing there. All of them declare oh, it is stunning, it is beautiful, as a result of they do not wish to be seen as unwise. Then it finally ends up with the Emperor making ready for a giant parade, and that is the place I decide up the story from there. Let me learn you from Hans Christian Anderson from 1837. When he tries on, quote-unquote,  ‘the brand new garments,’ it says, they are saying to him, ‘These scoundrels, these unsavory characters. How nicely your majesty’s new garments look. Aren’t they changing into? The advisors all chirped in. He heard all sides. That sample is so excellent. These colours so appropriate. It is a magnificent outfit.’ The Minister of Public Processions introduced Your Majesty’s cover is ready outdoors. I am imagined to be prepared, the Emperor mentioned, turning to the mirror. It is a exceptional match, is not it? As he appeared to treat his costume with the best curiosity. The noblemen, who had been to hold his prepare, reached to the ground as if selecting up his mantle, then pretended to carry it and carry it excessive. They did not dare admit that they had nothing to carry.

‘So, off went the Emperor underneath the sumptuous cover. Everybody within the streets and home windows mentioned oh, how nice are the Emperor’s new garments? Do not they match him to perfection? See his lengthy prepare. No one would confess he could not see something, for that will show he was both unfit for his place or a idiot. No costume the Emperor had worn earlier than ever bought such a whole success. However he hasn’t bought something on, slightly youngster mentioned. Did you ever hear such harmless prattle, mentioned his father? One particular person whispered to a different what the kid had mentioned, he hasn’t something on. A toddler says he hasn’t something on. Then the entire city cried out ultimately, however he hasn’t bought something on. The Emperor shivered for he suspected they had been proper, however he thought this procession should go on, so he walked extra proudly than ever as his noblemen held excessive the prepare that wasn’t there in any respect.’

When the details come out, it is exhausting typically to confess you are on show. That the invoice truly would not do what the title says it is imagined to do. This time the invoice is named the Inflation Discount Act. They are saying it is designed to have the ability to decrease inflation and to scale back the deficit, besides now it has been scored and it would not truly scale back inflation, and deficit discount is as seen because the emperor’s new garments. The rating for inflation said within the public scoring, here is the quote it, ‘the impression on inflation is statistically indistinguishable from zero.’ The CBO scored the invoice and mentioned, ‘it could have a negligible impact on inflation.’ Keep in mind, that is the invoice titled the Inflation Discount Act. The rating deficit on the deficit finish, after many on the opposite facet the aisle mentioned it could have $300 billion in deficit discount is lower than a billion.

However wait, there’s extra to the story on even that $100 billion. Greater than 200 economists wrote a letter to Senator Schumer detailing how this invoice is not going to scale back inflation, nor scale back the deficit. Taxing extra and spending extra will solely make the issue worse. They closed by saying this assertion, ‘the invoice deficit discount is prone to show illusionary as a result of implausible spending phase-outs. In abstract, we agree with the pressing want to scale back inflation, however the Inflation Discount Act of 2022 is a deceptive label utilized to a invoice that will seemingly obtain the precise reverse impact.’ What they mentioned was, the emperor has no garments. It would not actually scale back inflation. Sooner or later, the emperor has to decide. Am I going to maintain parading by the streets when everybody is aware of the Inflation Discount Act would not scale back inflation? Or am I going to move again and repair it?

Let me begin with simply the plan that is on this invoice. This is the invoice titled the Inflation Discount Act of 2022. So the plan my Democrat colleagues have laid out, let me offer you a pair particulars within the plan to scale back inflation within the Inflation Discount Act of 2022. This is one, as much as $4 billion allotted to check cow burping and their manufacturing of methane. I am certain that is going to carry down the value of beef immediately. That grocery retailer value, as I’ve heard even on the ground right now, that is going to carry down the costs on the grocery retailer by having as much as $4 billion allotted to check cow burping. It has $2 billion in development grants to enhance walkability in context-sensitive initiatives. Nobody appears to know what the phrase context-sensitive initiatives even means, or how $2 billion in development to enhance walkability will carry down inflation.

There’s $3,000 for environmental justice block grants to facilitate workshops. Workshops to carry down inflation. Aren’t you assured that the value of eggs and bread will go down after $3 billion is spent on environmental justice workshops? $17 million for consumer-related schooling and partnerships to scale back greenhouse gasoline emissions. By the way in which, that is not lowering, that is partnerships to debate lowering. There’s a brand-new tax credit score for Elon Musk on this, although. I am certain that may carry down inflation. Tesla has used up all of its credit for its electrical autos. This invoice renews it and does a particular perk for Tesla to offer them limitless new tax credit. I am certain Elon Musk is thrilled about his limitless new tax credit score to him. And I’m certain all of our costs will go down based mostly on Elon Musk ‘s new multibillion-dollar tax credit score that he will get.

Once more, the invoice is the Inflation Discount Act.

There is a new payment on methane, which is able to increase the value of pure gasoline, which has been estimated to lift the value of our pure gasoline to the patron 17 %. Seventeen % enhance in our pure gasoline. Now, let me remind you, that is the Inflation Discount Act that may enhance the value of our heating, our cooking, our power manufacturing 17 %.

There is a new tax on imported oil and new charges on home oil produced on federal lands. There’s new inspection charges and homeowners’ charges on pipelines. I don’t perceive how new charges, new taxes on oil and gasoline are imagined to decrease the value of pure gasoline and gasoline, however that is what’s declared within the Inflation Discount Act. If solely we had extra taxes on oil, gasoline, and pure gasoline, then costs will someway magically go down.

As has been talked about a number of occasions on the ground, this Inflation Discount Act hires greater than 80,000 new IRS auditors, with no restrict on who they’ll audit. In case you thought that there could be a restrict to these individuals making $400,000 or extra on being audited, you had been flawed. Now, that would have been on this invoice, however they selected to not put it on this invoice. There aren’t any guardrails for who may be audited by the IRS with billions of {dollars} being allotted to new IRS brokers. Each single American of each revenue bracket, each small enterprise, each massive firm, everybody goes to expertise new IRS audits within the days forward.

So, keep in mind this evening. Keep in mind this evening. Within the subsequent 10 years, while you get an IRS audit, it was the Democrats on this physique that despatched the IRS to your own home. So maintain your data, as a result of IRS audits are about to dramatically go up because of the present of the Inflation Discount Act. Possibly this invoice ought to as an alternative be known as the CPA Hiring Act, as a result of I assume thousands and thousands of taxpayers who wrestle underneath our difficult tax code already will now have to rent a CPA to know their probabilities of being audited are vastly rising now. They usually know the difficult guidelines of the IRS.

Most taxpayers that I speak to submit their tax kind yearly and hope they bought it proper, as a result of it is so difficult. However due to this evening, and this vote, there can be auditors coming after you to just remember to bought it proper. Democrats within the days forward, when the IRS involves this physique for a listening to, can be asking them, did they pull in further cash based mostly on the audits they gave them? As a result of they don’t seem to be telling you this, however they assume the IRS will acquire $200 billion extra as soon as they provide them these new auditors. You may be assured that is going to be a metric that’s going to be checked within the days forward.

The IRS will immediately be just like the small-town police power that has a quota of writing tickets on the freeway by their small city to assist pay for the brand new metropolis corridor assembly. You bought to pay for metropolis corridor, it’s essential write extra tickets on the freeway. It is about to be that with the IRS. They should audit extra, go get extra, as a result of we gave you extra individuals. Keep in mind, that is the Inflation Discount Act. I’ve but to determine how Individuals getting extra audits reduces inflation, however as marketed that is going to carry down the price of groceries, that is going to carry down the price of gasoline by extra individuals getting audited by the IRS.

One of many different fascinating plans on this invoice to scale back inflation is to power extra Individuals to affix a union. Now, I’ve to inform you, I’ve no angst in opposition to unions. Unions are a alternative. These people ought to be capable to select to affix a union, be a part of collective bargaining. That is an American proper and privilege. Let me say this, 10.3 % of the American workforce is union—10.3 %. The power portion of this invoice, which is billions and billions and billions of {dollars}. Within the power portion of this invoice, unions get billions of {dollars}, nonunion staff get nothing.

So when you work within the power sector proper now, and you are not a union worker, you are about to get lower out. As a result of the way in which this invoice is written, it provides federal payouts to corporations that use union laborers, which is able to make nonunion power corporations un-competitive and can power them out of enterprise or power them to unionize. This must be known as the Obligatory Union Invoice of 2022, not the Inflation Discount Act. As a result of I’m unsure how forcing extra individuals right into a union reduces inflation, however that is a significant portion of this invoice. I am assured the union bosses throughout this nation are thrilled to lastly see a return on their funding since they gave closely to democrats in 2022 to get them elected. That is their payoff. They will now not be 10.3 % of staff in unions. That is going to power extra corporations to need to unionize or they will be unable to outlive due to the federal credit that solely go to corporations that rent union labor. This compelled unionization sound like the answer to inflation discount to you? It does to apparently half this physique.

It creates a subsidy in medical insurance to be introduced proper earlier than the autumn elections this fall. It isn’t for these which can be in poverty. These which can be in poverty all the way in which as much as a full 100% in poverty already get well being subsidies. This isn’t at of us on the poverty stage, 200 %, 300 %, or 400 % of poverty. This can be a household of 4 making $200,000 that may get this healthcare subsidy. What do the economists suppose will occur with this new subsidy? They consider employers will drop medical insurance and  push staff underneath the inexpensive care act insurance policies and can shift increasingly individuals on to the federal government rolls.

Keep in mind, that is the Inflation Discount Act. As homelessness will increase throughout the nation proper now, the invoice provides $1 billion into HUD for zero emissions electrical energy technology in inexpensive housing, that’s what it’s known as. Zero emission electrical energy technology in inexpensive housing. It isn’t about rising entry to housing for these which can be homeless, it is photo voltaic panels in public housing. I am assured the individuals which can be dwelling on the road, making an attempt to outlive a 9 % inflation charge, are actually hoping they’ll discover someplace with a photo voltaic panel. However that is what’s within the Inflation Discount Act of 2022, is photo voltaic panels in public housing, that’s their answer to fixing inflation.

Whereas many people have been pushing again exhausting to dam China from shopping for extra land in the US, this invoice truly provides ag subsidies to landowners no matter who’s the proprietor of the land. They do not need to be a US citizen. They do not need to be American possession. We’re actually opening up that homeowners of land to have the ability to get entry to it.

I’ve additionally heard over and over that there aren’t any new taxes within the Inflation Discount Act. I’ve heard that in nationwide media, from my Democrat colleagues saying it over and over and on this flooring. Properly, that appears to be true when you’re a inexperienced power firm, that’s true there isn’t any new taxes for you. They will have large tax breaks. Whereas there’s a push for everybody to have a 15 % minimal tax, that is not precisely true to these of us in these inexperienced power corporations which can be main democrat donors. They won’t have that very same minimal tax normal. The Tax Basis discovered this, that is their quote. ‘On common, tax filers in each quintile would expertise a drop in after-tax incomes.’ Let me run that previous you once more. ‘On common, tax filers in each quintile would expertise a drop in after-tax incomes if this invoice passes.’ Meaning everybody within the nation. Below $400,000 and over $400,000 a 12 months. Everybody has a drop in after-tax revenue.

One of many new taxes that was simply added into the invoice right now, the inventory buyback tax. That is to punish corporations which can be listed on our inventory exchanges from shopping for again shares to lift the worth of shares. They purchase again shares in order that the inventory worth goes up. They’re placing a tax on them to have the ability to punish them to attempt to forestall them from doing this. They make it sound like they’re hitting the massive fats cat company CEOs and guys on Wall Road, protecting the worth of inventory decrease. They will actually stick it to the person, besides, 16 million Individuals are invested in a 401(ok) plan for his or her retirement. 16 million. The biggest homeowners of shares in America are retirement plans, insurance coverage corporations, and nonprofits. They’re the most important homeowners of shares. So the people who can be harm probably the most on this new plan to drive down the inventory market costs are nonprofits, insurance coverage corporations, and retirement plans. 58 % of Individuals personal some type of inventory.

This can be a tax immediately and intentionally designed to maintain the value of particular person shares from going up. Positive, that is going to harm CEOs that personal their very own inventory, nevertheless it’s additionally going to harm on a regular basis Individuals that simply personal inventory on their very own, and it’ll harm all of these retirement plans. However they appear to not care who they harm on this so long as they’ll additionally harm CEOs. Driving down the inventory market will, I suppose, scale back inflation, if that is their plan of their Inflation Discount Act, is to drive inventory costs decrease for retirees and nonprofits and particular person traders.

One other new tax that was added right now, a 15 % minimal tax on companies which can be funded by non-public fairness. I’ve to inform you, this one shocked even me when it bought slipped in right now. Most corporations which can be funded by non-public cash are small companies, analysis corporations, small manufacturing corporations. This does a brand new 15 % tax on these small companies. Principally, when you’re owned by non-public cash, you are funded by non-public cash separate from the proprietor itself, you are thought of a subsidiary, and so that you get this huge tax that’s laid on you. Let me offer you an instance of this. I do know immediately an organization in Oklahoma that is a small manufacturing firm. They’re funded by non-public outdoors cash. Throughout COVID my Democratic colleagues had the identical vendetta in opposition to manufacturing that was funded by non-public fairness.

This specific firm, like each different firm throughout the nation, throughout COVID couldn’t get entry to the Paycheck Safety Program as a result of Democrats mentioned, ‘In case you’re funded by non-public outdoors cash then we’re not going to get you entry to that since you’re in evil non-public fairness areas.’ Regardless that they’re vastly small companies. This specific manufacturing firm in Oklahoma produces valves. This valve firm had a whole bunch of staff earlier than COVID. As soon as COVID occurred and enterprise dropped off instantly, as a result of they could not get entry to the Paycheck Safety Program like each different small enterprise, they laid off a whole bunch of staff.

These staff weren’t wealthy of us. These had been of us turning a wrench and making an awesome product that lots of people needed. They bought laid off merely due to how they had been funded. Now my Democrat colleagues wish to bounce proper on high of them on the finish of COVID as the corporate is lastly beginning to come again, they usually’re hiring individuals again, to slap a brand-new new tax on high of them that nobody’s mentioned, nobody’s evaluated. No hearings have occurred on it to find out how broad and the way broad this can be.

Actually the homeowners of this firm will get up tomorrow morning as a result of in the midst of the evening a brand new tax bought added on to them proper on the tail finish of COVID just because my Democratic colleagues do not like every firm, no matter what they do, whatever the staff that truly work there, they do not like how they’re funded by a personal person who funds them.

This invoice would not decrease inflation. I listed off all these items. Might a single American go, ‘Oh that’ll take down inflation, that’ll work?’ None of these issues take down inflation.

It additionally would not scale back the deficit. Their plan for lowering the deficit—brace your self for this—their plan for lowering the deficit just isn’t doing packages they had been already not going to do. That is their plan. That is the deficit discount. Let me offer you an instance of this. For example you had been going by Walmart purchasing, and also you’re at your purchasing cart and also you step apart to have the ability to get one thing off your shelf. Once you step again someone stuffed in your basket a giant bag of Brussel sprouts. Now, you didn’t put them in there. Another person put them in there. As you undergo the aisle, you look down and also you see this huge bag of Brussel sprouts. Now, I do not learn about you. I do not desire a bag of frozen Brussel sprout. Possibly a few of you like these. Nice. But when someone slipped a bag of frozen Brussel sprouts into my cart I might put it again up. I might put that away and say, ‘I’m not going to purchase that. Someone else put that into my cart.’ This is what I would not say. I would not say, ‘Someone put a bag of frozen Brussel sprouts in my cart. I’ll put them again on the shelf. That is deficit discount in my account.’ I wouldn’t say that.

And here is what I imply by that. Through the finish of the Trump Administration, they laid the groundwork for seniors to get a rebate on the pharmacy counter for Medicare prescriptions to make it possible for each senior bought a reduction on the pharmacy counter. That was the plan, that’s what the Trump Administration put in place. When the Biden Administration got here in they did not like that plan for seniors to get a reduction on the pharmacy counter, so that they set that plan apart and mentioned, ‘We’re not going to try this.’ And as an alternative they’ve give you this new plan, I’ll clarify in only a second. However they’re saying as a result of they did not do the plan that Trump was planning on doing, as a result of they did not try this plan, that is $100 billion in financial savings by not shopping for what they by no means supposed to purchase, ever.

Let me simply inform you: when you do not buy the Brussel sprouts, you simply haven’t got the Brussel sprouts, however you are not saving cash from that. You simply did not get them. That is not actual financial savings. So after they say it is deficit discount it is as a result of they don’t seem to be doing what they mentioned they mentioned they don’t seem to be going to do, and now they’re magically calling it deficit discount. That’s not actual discount of the deficit. That is a finances gimmick in Washington, DC, an enormous finances gimmick. Can I simply say the emperor has no garments. It isn’t actual.

As a replacement, of this rebate rule, as a substitute, they’ve created an actual technique of value controls for some medication, and it isn’t value and negotiations. It is value controls. They’re spending $3 billion to arrange a system for the federal government to have the ability to choose costs on one of the used medication in America. By the way in which, it begins in 2026, is when this begins. So I’ve heard some individuals on the ground say, ‘We’ll have decrease costs immediately.’ This plan begins in 2026. it would not have an effect on anybody’s prescription drugs till 2027. So when you’re planning on discount in costs, it isn’t coming quickly. It is 5 years away, if there is a value lower in any respect.

The best way it is arrange is the president, whoever that could be 5 years from now, may have a brand new authority to not negotiate costs within the subsequent ten years. It isn’t a negotiation. It is setting the value as a result of when you disagree with the subsequent president, whoever the subsequent president is, and what they set on the value, they’ll increase the taxes in your firm 95 %. So when you disagree with the value that they decide, whoever the subsequent president is, what they decide for the value, then your organization will get hit with a 95 % tax. How does that sound for presidency sheer energy over an organization? To crush whoever they select. That is how that is arrange. ‘You do not comply with what I say, we’ll crush your organization.’

What does that imply for the longer term? Drug corporations may have new incentives to not use present medication for brand spanking new remedies as a result of here is the way it usually works. If a most cancers drug works for lung most cancers, then they begin experimenting with others varieties of most cancers to see if it really works on these. However on this system the Democrats are establishing, if a drug works for lung most cancers, they’ve a disincentive to attempt it on different cancers as a result of if the drug will get too used, then it falls into this new negotiation class. So the inducement for the drug corporations is to not attempt new methods of utilizing this drug for worry of getting too huge.

Can I inform you what this appears like in actual life? I’ve a pal at dwelling whose spouse has pancreatic most cancers. And they’re desperately making an attempt each remedy and making an attempt to get into each medical trial they’ll get into—desperately. They’re praying, and they’re working. And he is being an superior husband, and she or he’s being a troublesome warrior, going by nausea and fairly terrible remedies. They’re making an attempt to get into medical trials, that are already exhausting. This invoice will make it even tougher as a result of present most cancers medication may have a disincentive to check out new methods to have the ability to serve their most cancers. Thanks very a lot to my Democratic colleagues who’re lowering the variety of most cancers cures for the longer term. How does that treatment inflation within the Inflation Discount Act of 2022?

There’s additionally a particular little characteristic in it in the way in which the drug piece is about up that it incentivizes extra IV medication and fewer oral medication as a result of IV medication get extra time. Oral medication get much less time, so the inducement is to arrange IV medication as an alternative for the drug corporations. So for all of us who would like taking a capsule, robust luck. Democrats favor IV medication as an alternative of oral medication. So sooner or later you take an IV as an alternative of a capsule, it is due to the Inflation Discount Act of 2022.

Can I simply remind everybody that Medicare has insolvency in six years—2028. This Inflation Discount Act takes the financial savings from this new prescription plan from Medicare, takes it out of Medicare, it would not stabilize Medicare, which goes bancrupt in six years. It takes it out of Medicare and strikes it over to the inexpensive care act subsidies. It actually takes cash designed for 76-year-olds on a set revenue and provides them to 26-year-olds and their household making $200,000 a 12 months. That is the Inflation Discount Act of 2022.

By the way in which, did I point out once more these subsidies land proper earlier than the election this fall? This invoice is three-quarters of a trillion {dollars} that not a single particular person on this chamber has learn—755 pages of it that got here out just a few hours in the past. The media, who additionally hasn’t learn this invoice, continues to have the ability to speak about what an awesome plan it’s for inflation discount. They proceed to reward the invoice, although they’ve learn the identical issues. It would not scale back inflation, it would not scale back the deficit.

They joined within the refrain speaking about the fantastic thing about the emperor’s new garments. I am keen to say what lots of people on this room know of their intestine however they’re afraid to say: it would not scale back inflation. It would not scale back the deficit. The emperor has no garments. Let’s reject this invoice.

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