Since the IRA’s surprise unveiling on July 27, analysts have debated how much its contents pertain to inflation. “The IRA speaks to the high energy costs” Americans are struggling with, says Stokes. A recent analysis she co-authored found that 41% of inflation is attributable to fossil fuel prices. Aliya Haq, vice president of US policy and advocacy at Breakthrough Energy, says the bill is “deflationary, because it increases our energy supply and makes it easier for consumers to afford their energy bills.”
The Congressional Budget Office, the Committee for a Responsible Federal Budget and the Penn Wharton Budget Model all found that the legislation will have a negligible effect on inflation.
However much it influences voters come November, it’s not clear that the name “Inflation Reduction Act” mattered to the bill’s passage, says Susan Joy Hassol, director of the nonprofit Climate Communication. The IRA garnered a similar level of support as its predecessor, the Build Back Better Act. Democrats were for it and Republicans were solidly against it, “and that was true with the prior name and didn’t change,” she notes.
--With assistance from Jennifer A Dlouhy and Steven Dennis.
This article was provided by Bloomberg News.