The Veracity Report

Seal of the US House of Representatives

The So-Called ‘Inflation Reduction Act’ Hurts More Than it Helps

Seal of the US House of Representatives

As part of our ongoing commitment to restore integrity to journalism through the strong dissemination of facts to help dispel the massive disinformation campaigns circulating throughout our country and the world.

Here, for your consumption, we have provided the complete, unedited, and unredacted text of House Resolution (H.R.) 5376, also being dubbed “The Inflation Reduction Act of 2022.” We do this because we are of the firm belief that nobody should either criticize or support a piece of government legislation without first having read the legislation, or at least the key parts of it.

The Inflation Reduction Act of 2022

In short, after reading all 725 pages of the bill in its entirety, we can say without reservation that this bill is disturbing. Not only in its stretch, but in its girth and in the spiraling shockwaves it will cause, like ripples in a pond, once it is implemented across our country.

In keeping with our most solemn guiding principle to never attempt to tell our followers who or what to believe, or what to think, we will not go into extreme detail here, nor will will we provide any conclusions resulting from the facts within the bill that we have uncovered. But, what we will do is provide just a couple of what we feel are the most egregious elements of the bill.

  • While the Democratic proponents of the bill exhaustively proclaim that no individual tax increases are incorporated in this bill, that statement, while technically true, is also terribly deceptive. It’s deceptive because this bill’s primary function is to increase the taxes of all businesses in America. Those businesses who are obligated to maintain profit margins to their stockholders and investors, will either have to counter those increased expenses by cutting labor (laying off workers), or increasing the prices of the goods and services they sell. This will have the necessary affect of causing the people who purchase those goods and services to pay more for them (no different than raising their taxes). Further, since sales taxes in all 50 states are collected as a percentage of the price of the goods and services purchased, by increasing the prices of those goods and services, you also, by definition, increase the taxes that the consumers pay – even the poorest consumers, whom this will hit the hardest. So yes, this bill will increase the amount of taxes all Americans pay, albeit indirectly, however, it is the combination of the higher sales tax and the increased costs of the goods and services that we fear will be more costly to the poorest Americans than a simple tax increase based upon income levels would have been.
  • This bill unilaterally increases the tax liability of ALL US businesses, not just the highest revenue corporations the proponents of the bill constantly elude to. That means that small, independent mom and pop restaurants, antiques stores, grocery stores, delicatessens, gas stations, coffee shops, book stores, and so many more, will all face a minimum 15% minimum tax which now must be paid without regard to how much those businesses earn. This is not “their fair share.” It clearly equates to increasing the taxes of all Americans because those small, independent stores will also have no choice but to increase prices to cover those increased expenses. This will not only have the same trickle-down affect as we discussed in the first bullet point here, but will also make these small and independent business owners much less competitive with the prices charged for similar goods and services by the largest chain and franchised stores and restaurants they compete with everyday, and which are far better equipped to deal with these increases than the small independent business owners are.

To be sure, these are not the only severe red flags we found in this piece of legislation, but we have highlighted them here because we feel they will be the most immediately and negatively impactful to the average American consumer.