The Economy Needs an Inflation Reduction Act

Senator Joe Manchin (D-WV) just announced an agreement with Senate Majority Leader Chuck Schumer (D-NY) to vote on the Inflation Reduction Act of 2022, legislation focused on climate, energy, tax revenue, health care costs, and deficit reduction. Although details of the legislation have not yet been released, it would apparently include hundreds of billions of dollars in deficit reduction.

The following is a statement from Maya MacGuineas, president of the Committee for a Responsible Federal Budget:

The best thing Congress can do to avoid a recession is to help the Federal Reserve fight inflation. Legislation focused on lowering health care and energy costs, raising revenue, and reducing deficits may be exactly what the doctor ordered.

As we await details on the specifics of this plan, we are encouraged by the general framework. With inflation surging and our national debt approaching record levels, Congress should work toward passing major deficit-reducing legislation as soon as possible.

Senator Manchin deserves tremendous credit for continuing to push for a fiscally responsible reconciliation bill.


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