inflation reduction act 2022

[powerboatr]

good link of a great digestion of the act,
should be climate change act of 2022
some things that jump out are medicare negotiation for lower drug prices ( hmm congress fought the last guy in charge for 4 years when he tried this)
still trying to figure out how senate passed it ? 51 to 50 ..they used the budget reconciliation to pass without having to have more than one vote to pass over the opposing party
https://budgetmodel.wharton.upenn.edu/i ... uction-act
"Estimated Effects on Inflation

We estimate that the Inflation Reduction Act as passed by the Senate would have a very modest impact on inflation over the next decade. The Act produces some upward pressure on prices in 2023 and 2024, but its effects are too small to meaningfully affect measured the Personal Consumption Expenditures (PCE) inflation rate as reported by the Bureau of Economic Analysis. The Act would reduce annual inflation by around 0.1 percentage points in about five years, once major deficit-reducing provisions of the legislation are fully implemented, but the Act would have no measurable impact on inflation after 2028. All these point estimates are not statistically different from zero, indicating a low level of confidence that the legislation would have a measurable impact on inflation."

"More specifically, the Act proposes the following policy changes:

Extension of expanded ACA subsidies. Extends the temporary expansion of Premium Tax Credits through 2025. The expansion, which offers eligibility to households above 400 percent of the poverty line, is scheduled to expire at the end of 2022 under current law.

Climate and energy provisions. Includes tax rebates and credits to lower energy costs for households; tax credits, research, loans, and grants to increase domestic manufacturing capacity for wind turbines, solar panels, batteries, and other essential components of clean energy production and storage; tax credits to reduce carbon emissions; programs to reduce the environmental impact of agriculture; a new fee on methane emissions; and more.

Minimum tax on corporations’ book income. Creates a new 15 percent corporate alternative minimum tax based on the financial statement income of corporations with at least $1 billion in such income. Allows for bonus and accelerated depreciation deductions when calculating taxable book income.

Tax on share repurchases. Imposes a new 1 percent tax on corporations’ net repurchase of stock.

Extension of excess noncorporate losses limitation. Extends the limitation on the deduction of pass-through losses through tax year 2028, which under current law is scheduled to expire at the end of 2026. The maximum deductible loss, which is indexed to inflation, is $540,000 for married taxpayers in 2022.

Prescription drug price reforms. Allows Medicare to negotiate the price of certain prescription drugs; limits the price growth of certain drugs paid covered under Medicare to inflation; repeals the implementation of a “rebate rule” scheduled to increase drug-related Medicare outlays beginning in 2027; redesigns Medicare Part D benefit formula and caps out-of-pocket costs for beneficiaries.

IRS funding. Appropriates approximately $80 billion over the next decade for IRS enforcement activities including the hiring and training of new auditors, IT systems modernization, and taxpayer services.

Table 1 presents PWBM’s estimate of conventional budgetary effects over the 10-year budget window defined in the FY2022 reconciliation instructions. We estimate the Act would reduce cumulative noninterest deficits by $264 billion from FY2022 through FY2031."

[Rafe]

https://budgetmodel.wharton.upenn.edu/i ... uction-act
"Estimated Effects on Inflation"

We estimate that the Inflation Reduction Act as passed by the Senate would have a very modest impact on inflation over the next decade. The Act produces some upward pressure on prices in 2023 and 2024, but its effects are too small to meaningfully affect measured the Personal Consumption Expenditures (PCE) inflation rate as reported by the Bureau of Economic Analysis. The Act would reduce annual inflation by around 0.1 percentage points in about five years, once major deficit-reducing provisions of the legislation are fully implemented, but the Act would have no measurable impact on inflation after 2028. All these point estimates are not statistically different from zero, indicating a low level of confidence that the legislation would have a measurable impact on inflation."

Political tip: If you want to quickly get an idea of the content of a bill proposed by a large number of democrat co-sponsors, just carefully ready the title assigned to the bill. Then reverse it 180 degrees because its result will have pretty much the opposite effect of what the title says it will do.

[Rafe]

Economists projected recently that Great Britain would be in a recession by Q4. The latest price-hikes there for consumer energy pretty much cements the deal. If we don't get our act together--as in put a leash on Susan Rice and the Biden administration by taking both the House and Senate--it's gonna be coming our way very soon...

Britain to see 80% spike in energy bills as crisis deepens
https://apnews.com/article/inflation-bo ... 8e1db0f637

"U.K. residents will see an 80% increase in their annual household energy bills, the country’s energy regulator announced Friday, following a record 54% spike in April. That will bring costs for the average customer from 1,971 pounds ($2,332) a year to 3,549 pounds [US$4,169].... And bills are expected to rise again in January to 4,000 pounds [US$4,699]."

That January 2023 estimate would equal a US$392 per month average.

[Paladin]

I'm working on my own inflation reduction today. Switched both internet and electric providers! Should save me $1,500 over the next 2 years.

[powerboatr]

I'm working on my own inflation reduction today. Switched both internet and electric providers! Should save me $1,500 over the next 2 years.

our electric provider is actually low
but the power cost recovery fee that is a moving target each month make sup for nearly 1/2 of the bill , this months upcoming is 297.
kilo watt charge is 150.67, the recovery fee is 129.95 or .0575 per kwh
our killo watt usage went down, but cost of power the coop buys from henderson nat gas fired plant went up

[philip964]

Economists projected recently that Great Britain would be in a recession by Q4. The latest price-hikes there for consumer energy pretty much cements the deal. If we don't get our act together--as in put a leash on Susan Rice and the Biden administration by taking both the House and Senate--it's gonna be coming our way very soon...

Britain to see 80% spike in energy bills as crisis deepens
https://apnews.com/article/inflation-bo ... 8e1db0f637

"U.K. residents will see an 80% increase in their annual household energy bills, the country’s energy regulator announced Friday, following a record 54% spike in April. That will bring costs for the average customer from 1,971 pounds ($2,332) a year to 3,549 pounds [US$4,169].... And bills are expected to rise again in January to 4,000 pounds [US$4,699]."

That January 2023 estimate would equal a US$392 per month average.

Apparently the British National Health System is about to crater or has already. I'll try and find a story a guy fell in his front yard and they called an ambulance for him. They had to pitch a tent around him as the ambulance was days away from coming. ( in my opinion Lady Di would not have died if she had her car wreck in the US instead of France due to the French health care best in the world system) (BTW if she had been in a US tunnel the concrete column would have had a barrier to prevent the car from hitting it head on anyway)

Europe is toast with the energy price increases. Apparently 20% of Americans are behind on their electric bills. I'm seeing a bail out for this before November.

I'm going to check and see if I can get the electrical panel work done before I get a single solar panel installed and still get the 30% tax credit. I figure I could then say the house was solar ready.

[mayor]

I'm seeing a bail out for this before November.

When I was discharged from the USAF in '78, inflation was just on the rise. Before 1979 ended, inflation was almost 14%. I knew people that were trying to make mortgage payments @10 and 12 percent. It made some of them unhealthy. I don't remember any bailouts then.

[chasfm11]

I'm seeing a bail out for this before November.

When I was discharged from the USAF in '78, inflation was just on the rise. Before 1979 ended, inflation was almost 14%. I knew people that were trying to make mortgage payments @10 and 12 percent. It made some of them unhealthy. I don't remember any bailouts then.

I bought a house in 1983 and had a 16.5% mortgage. In order to help me move (it was a corporate relocation), my company gave me MIRD (mortgage interest rate differential). It gave me a lump sumpayment for three years of the difference between my old rate of then 9.5% and the new one, based on the cost of the new house. I was fortunate. I re-habbed that house myself for a few thousand dollars and sold it in another corporate relocation in 2.5 years, keeping the half of year of MIRD . I would have started to stagger under the weight of the mortgage when it would have all been on me.

[Rafe]

It took Reagan to clean-up the astounding inflation of the Carter administration. We need a Reagan in 2024.

What's so fascinating about this White House is that it seems in such a shambles that that major players aren't able to keep on the same page. Yesterday Uncle Joe for some reason decided to resurrect the already-failed "Ultra-Maga" trope, deciding to go one step further and call everyone who supported Trump a "semi-fascist." This from an administration that has shown itself to be essentially dictatorial; desirous of a centralized autocracy; uses all means political, legal, and public opinion to suppress opposition; subordinates interests of the individual taxpayer to the agenda of the ruling party; and promotes governmental regimentation of the economy. Wait, what? Aren't those all characteristics of fascism?

Then Joe took (and fumbled) rare impromptu questions before boarding a plane. He simultaneously said that the economy was stronger than it's been in a long time, but that people were hurting economically. Figure that one out. But this was, again, his justification for the student loan bailout (the largest single expenditure by presidential fiat in the history of the country) that non-administration economists are estimating could end up costing $500 billion, not $300 billion. He said it won't increase inflation and will actually stimulate the economy. You know, by making taxation of the janitors in a medical school help pay for the tuition of the soon-to-be physicians. Because, you know, class and social equity. Estimates are that the bailout will end up costing, in one way or another, every taxpayer and additional $2,000+ per year.

But the economy is great! You just don't realize it is, that's all. All the people who forecast that the inflation reduction act will have, at best, a 0.3% improvement in inflation after 2024 or, at worst, increase inflation due to deficit spending, well, they're all wrong. They're also wrong that the student loan bailout will wipe out any possible improvement from the act and deepen inflation. Only Susan Rice and the rest of Biden's handlers know anything.

But wait. At the same time Uncle Joe was doing as bad a job as Karine Jean-Pierre at handling questions--but he was very definitive that the economy was strong and that, hey, we had zero inflation last month--his Fed Chair, Jerome Powell, was speaking..



So...wait. "Reducing inflation is likely to require a sustained period of below-trend growth. Moreover, there will very likely be some softening of labor market conditions. While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses. These are the unfortunate costs of reducing inflation."

Biden: My administration has been better for the economy than Trump's ever was. We're doing great!
Powell: There will be pain. It's coming.

Powell essentially said that the September meeting would bump the interest rate at least another 75 basis points. And he gave no hint that the increases would stop there. Investors certainly understood and believed Powell more than they did Biden. The Dow closed down a precipitous 1,007 points and the NASDAQ fell 3.9%.

[powerboatr]

i am thinking we need a class action lawsuit against bidens admin. if he pays 10k off student loans, that I didnt co sign, shouldn't we be entitled to the student tax break for 2022 taxes?

yes i have 2 degrees and almost done with the third..
1st one the navy paid 75% of tuition only, no books, labs or the remainder. they limited it to 2 classes per semester and capped it at 5 classes per physical year. so the other 9 were on me.

my 2nd was at 100% tuition, but wait that was limited to 4 classes per year or a certain dollar amount, still no books or labs, so the remaining 12 classes were on me.
i did get a ton of credits becasue of my job, licenses and experience which really shortened the time frame, and class load overall.

3rd one has been 90% on me. Texas paid 10% through a veteran program.

so i guess the tax payer covered some of my college, but not by much. I figure it sort of made up for the lack of real pay raises the last 8 years of my navy career , and being deployed an extended time. i worked off the debt by doing a JOB . not sitting in class listening to crap.


we paid out of pocket over 55k in school fees, books, labs, tests, practicals, lodging etc
i did allot of classes online. but still had some long away trips for practicals that i had to cover 100%.

so giving a 10k break to students, simply based on having a loan and no production in return to support the country or anything seems like a very bad proposal

[Rafe]

Interesting tidbit surfaced about what was touted as the stellar unemployment results for July. Turns out that 82% of the jobs filled in July--not a typo: 82%--were by individuals in the 13 to 19 age group. Guess it should have been obvious, but I never considered it. Companies can't fill low-paying jobs...and then...summer vacation.

In the same interview, also logically, we were warned not to make much of the positive August inflation report. Same reason. August is an anomaly and its result almost always needs to be adjusted later. The reason? Back-to-school spending. We can't send Susie to school without books, supplies, and maybe a new pair of shoes. So consumer spending always spikes...temporarily.