the united states taxes each barrel of imported oil at a flat rate. this is

Source: Tax Foundation General Equilibrium Model, August 2022. Combined Long-Run Effects of the Inflation Reduction Act Tax Provisions Gross Domestic Product (GDP) Using the General Equilibrium Model, we estimate that the tax provisions, IRS enforcement, and drug pricing provisions in the bill would increase federal revenues by about $676 billion over the budget window, before accounting for $352 billion in expanded tax credits for individuals and businesses, resulting in a net revenue increase of about $324 billion from 2022 to 2031.Įxcluding the anticipated revenue from increased tax compliance and the drug pricing provisions, the bill would lose about $84 billion in revenue over the budget window. Our analysis contains estimates of the budgetary, economic, and distributional impacts of the Inflation Reduction Act taxes as specified in bill text that was amended and passed in the Senate on August 7 and agreed upon in the House on August 12. It would also reduce average after-tax incomes for taxpayers across every income quintile over the long run.īy reducing long-run economic growth, this bill may actually worsen inflation by constraining the productive capacity of the economy. Using the Tax Foundation’s General Equilibrium Model, we estimate that the Inflation Reduction Act taxes would reduce long-run economic output by about 0.2 percent and eliminate about 29,000 full-time equivalent jobs in the United States.

The Inflation Reduction Act (IRA), successor to the House-passed Build Back Better Act of late 2021, has been touted by President Biden to, among other things, help reduce the country’s crippling inflation. Tax Foundation releases preliminary economic, revenue, and distributional estimates of the Inflation Reduction Act.Tax Foundation releases updated economic, revenue, and distributional estimates of the Inflation Reduction Act of 2022, as passed by the Senate on August 7, 2022.The House passes the Inflation Reduction Act of 2022, sends it to President Biden to sign.

The united states taxes each barrel of imported oil at a flat rate. this is