Manchin’s deal with Schumer won’t curb inflation, warns former Congressional Budget Office director
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West Virginia Democratic Sen. Joe Manchin III was not “tricked” into forging what Democrats claim is anti-inflation legislation with Senate Majority Leader Chuck Schumer, but the bill won’t slow inflation, as Manchin, a former congress leader thinks. The budget office told Fox News on Monday.
“The Senate is moving on to what we want to call this anti-inflationary inflationary bill. And combined [with the CHIPS act]they’ll spend a lot up front and promise to pay later – and the deficit won’t come down for six years,” said American Action Forum President and former CBO Director Douglas Holtz-Eakin.
In this regard, if the Federal Reserve cannot rein in inflation during this period, the economy will be in even worse shape.
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“If the Fed hasn’t gotten inflation under control six years from now, we’re all going to be in really big trouble. That won’t help,” Holtz-Eakin said of the Manchin-Schumer compromise.
Noting that the Joint Committee on Taxation, which was positive about the Democrats’ infrastructure law, was conversely critical of that legislation, Holtz-Eakin said none of their calculations or procedures had changed in the meantime. time, but lawmakers are now ignoring their analysis:
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“[They] have not changed anything in their way of doing things. They get tax legislation. They consider the implications. They attribute it to income groups. It’s business as usual for them. So they took the language as it was written, interpreted it, wrote it down and it touches people of all incomes,” he said.
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“And it’s inevitable that it will, because it’s a big tax hike on American corporations that employ a lot of Americans, sell products to a lot of Americans – And that will drive down the wages of The former and the prices of the latter. And so that’s bad news for Americans of all incomes. It’s not a complicated analysis.
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Holtz-Eakin stressed that he doesn’t believe Manchin was taken advantage of by his caucus, but that he made a “good faith effort to negotiate something he believes in.”
“So I don’t think he was cheated, but I’m not sure he should trust the track record on the other side of that market.”