Manchin admits that the “Inflation Cuts Act” won’t tame inflation for Americans anytime soon
Senator Joe Manchin, DW.Va, acknowledged Tuesday that the Inflation Cuts Act won’t curb inflation “immediately,” and told reporters that the necessary investments needed to bring prices down will take some time.
Manchin’s comments came after President Biden signed the landmark health care and climate change bill into law on Tuesday, introducing what he called “the final piece” of his reductive domestic agenda. Although Democrats have called the measure an inflation-reducing law, nonpartisan analysts said it would have a barely perceptible effect on prices.
Asked by Fox News reporter Hilary Vaughn whether it would be misleading to call the bill an inflation-reducing bill because it wouldn’t make everyday goods less expensive, Manchin said, “Why?”
“Well, right away it’s not,” Manchin said. “We’ve never done that [said] Anything will happen instantly, like turning the switch on and off.”
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Manchin said the market anticipates the investments that will be made as the bill is passed. Utility prices, for example, will fall as the United States becomes more energy independent.
“We’re fighting like chickens,” Manchin said. “You have to get yourself out of this.” “If you think you’re going to wait for the Fed to raise rates, discourage you from buying anything (and) it’s going to take care of our inflation, that’s not how you take care of inflation.”
Asked if it would make sense to ask people to pump large sums of money to put solar panels on their roofs, buy an electric car, and then cash out the loans, Manchin said the process would take 10 years.
“It’s not going to be overnight. They have incentives to do it, to help them. Believe me, if you have something bad in your home that you’re replacing, and you have some help that you’re considering,” Manchin said.
The legislation includes the largest federal investment in history to combat climate change—about $375 billion over the decade—and would cap prescription drug costs at $2,000 out of pocket per year for Medicare recipients. It will also help an estimated 13 million Americans pay for health insurance by extending support during the coronavirus pandemic.
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The costs of this measure are being paid for by new corporate taxes and extensive IRS enforcement of wealthy individuals and entities, with additional funds earmarked to reduce the federal deficit.
The Associated Press contributed to this report.