Manchin: Democrats Never Said Inflation Reduction Act Would Instantly Bring Down Prices

Manchin introduced the legislation alongside Senate Majority Leader Chuck Schumer with the intention of lowering the costs of prescription drugs and the federal budget deficit, investing in clean energy and imposing a 15% minimum tax on corporations making at least $1 billion in profit. (RELATED : “Do You Just Laugh Out Loud?”: CNBC’s Kernen mocks the Inflation Reduction Bill

*Several senior members of the Administration have stated that the bill will soon reduce inflation. According to Energy Secretary Jennifer Granholm, the climate provisions of the bill will reduce fuel prices “immediately”. (RELATED: Biden Just Signed The Inflation Reduction Act — Here’s How It Can Transform Your Healthcare)

“Immediately, people will be able to lower the fuel costs in their home,” Granholm said. “There’s a 30% tax credit that you can claim in 2022 for installing energy efficient windows, heat pumps and energy efficient appliances. This credit is available immediately. And, on top of that, of course, if citizens want to install solar panels on their roofs so they can generate their own power, that’s another 30% tax credit.”

White House press secretary Karine Jean-Pierre said that people will feel the easing costs of energy “right away” due to the passage of the bill on CNN Friday.

” How does this bring it down now? It is urgently needed by Americans,” Brianna Keilar, CNN’s “New Day” host asked.

Let’s pass this bill, then let’s see how all the details and everything works out. These are the things America will feel immediately. When it comes to lowering prescription drugs, that will be earlier in the year next year.”

Director of the National Economic Council Brian Deese told Yahoo Finance that the law will have an “immediate impact” by lowering healthcare and prescription drug costs and providing tax credits for investment in clean energy. The bill will have an immediate, short-term and long-term impact on America’s economy according to Deese.

*Nonpartisan reports and agencies have refuted Democrats’ claim that the bill will reduce inflation. According to the Congressional Budget Office (CBO), the bill will not have a significant impact on inflation in current or next year. The University of Pennsylvania Wharton budget model found no inflation effect and will only reduce the deficit by $248 million. CNN White House correspondent John Harwood stated Tuesday that Manchin was trying to convince the bill’s name to be used as a marketing device. What it is about climate? It’s all about health policy. The legislation will extend Obamacare subsidies and lower prescription drug prices by allowing Medicare to negotiate. And it will tax large corporations. Harwood said that this is the main element of the plan. “If it does anything appreciable to reduce inflation, that’s gravy.”

The bill, in part, funds $370 billion in tax credits and subsidies to promote green energy and about $80 billion to add an additional 87,000 agents to the Internal Revenue Service.