Madam President, I yield myself 20 minutes from the bill time. Madam President, Hans Christian Andersen, in 1837, wrote a story about group think. It is called ``The Emperor's New Clothes.'' It begins with a leader who really loved his…
Madam President, I yield myself 20 minutes from the bill time.
Madam President, Hans Christian Andersen, in 1837, wrote a story about group think. It is called ``The Emperor's New Clothes.'' It begins with a leader who really loved his clothes. Some unsavory characters saw that, and they set up a weaving loom to make the finest clothes in the land, but they were actually weaving just air; there was nothing to it. The catch was they had sold the story that, if you can't see what they are weaving, it must be that you are just not wise.
So the Emperor sends a couple of his advisers to go check out the weaving to see what it looks like. They see, obviously, nothing because there is nothing there, and they all declare ``Oh, it is beautiful; it is lovely'' because they don't want to be seen as unwise.
Then it ends up with the Emperor preparing for a big parade, and that is where I pick up the story. Let me read to you from Hans Christian Andersen, from 1837, when he tries on the ``new clothes.''
These scoundrels, these unsavory characters who had sold him this said:
``How well Your Majesty's new clothes look. Aren't they
becoming!''
The advisers all chirped in. He heard on all sides, ``That
pattern, so perfect! Those colors, so suitable! It is a
magnificent outfit.''
Then the minister of public processions announced: ``Your
Majesty's canopy is waiting outside.''
``Well, I'm supposed to be ready,'' the Emperor said, and
turned again for one last look in the mirror. ``It is a
remarkable fit, isn't it?'' He seemed to regard his costume
with the greatest interest.
The noblemen who were to carry his train stooped low and
reached for the floor as if they were picking up his mantle.
Then they pretended to lift and hold it high. They didn't
dare admit they had nothing to hold.
So off went the Emperor in procession under his splendid
canopy. Everyone in the streets and the windows said, ``Oh,
how fine are the Emperor's new clothes! Don't they fit him to
perfection? And see his long train!'' Nobody would confess
that he couldn't see anything, for that would prove him
either unfit for his position, or a fool. No costume the
Emperor had worn before was ever such a complete success.
``But he hasn't got anything on,'' a little child said.
``Did you ever hear such innocent prattle?'' said its
father. And one person whispered to another what the child
had said, ``He hasn't anything on. A child says he hasn't
anything on.''
``But he hasn't got anything on!'' the whole town cried out
at last.
The Emperor shivered, for he suspected they were right. But
he thought, ``This procession has got to go on.'' So he
walked more proudly than ever, as his noblemen held high the
train that wasn't there at all.
When the facts come out, it is hard sometimes to admit you are on display, that the bill actually doesn't do what the title says it is supposed to do. This time, the bill is called the Inflation Reduction Act. They say it is designed to be able to lower inflation and to reduce the deficit except that now it has actually been scored. It doesn't actually reduce inflation, and deficit reduction is as invisible as the Emperor's new clothes.
The score for inflation stated in the public scoring that ``the impact on inflation is statistically indistinguishable from zero.''
The CBO scored the bill and said it ``would have a negligible effect on inflation.''
Remember, this is the bill titled: the ``Inflation Reduction Act.'' The score on the deficit end, after many on the other side of the aisle here have said it would have $300 billion in deficit reduction, it is less than a billion. But wait, there is more to the story on even that $100 billion.
More than 200 economists wrote a letter to Senator Schumer detailing how this bill will not reduce inflation nor reduce the deficit. Taxing more and spending more will only make the problem worse.
They closed by saying this statement:
The bill deficit reduction is likely to prove illusionary
due to implausible spending phase-outs.
In summary, we agree with the urgent need to reduce
inflation, but the Inflation Reduction Act of 2022 is a
misleading label applied to a bill that would likely achieve
the exact opposite effect.
What they said was, the Emperor has no clothes. It doesn't really reduce inflation. At some point, the emperor has to make a decision: Am I going to keep parading through the streets, when everyone knows the Inflation Reduction Act doesn't reduce inflation or am I going to head back and fix it?
Let me start with just the plan that is in this bill.
Here is the bill. It is titled: The ``Inflation Reduction Act of 2022.'' So the plan my Democratic colleagues have laid out--let me just give you a couple of details in the plan to reduce inflation in the Inflation Reduction Act of 2022.
Here is one: Up to $4 billion has been allocated to study cow burping and their production of methane. I am sure that that is going to bring down the price of beef right away. As I have heard, even on the floor today, this is going to bring down the prices at the grocery store by having up to $4 billion allocated to study cow burping.
It adds $2 billion in construction grants to improve walkability in context-sensitive projects. No one seems to know what the words ``context-sensitive projects'' even mean or how $2
billion in construction to improve walkability will bring down inflation.
There is $3 billion for environmental justice block grants to facilitate workshops--workshops--to bring down inflation. Aren't you confident that the price of eggs and bread will go down after $3 billion is spent on environmental justice workshops?
There is $17 million for consumer-related education and partnerships to reduce greenhouse gas emissions. By the way, that is not reducing. Those are partnerships to discuss reducing.
There is a brandnew tax credit for Elon Musk that is in this, though. I am sure that it will bring down inflation. Tesla has used up all of its credits for its electric vehicles so this bill renews it and does a special perk for Tesla to give them an unlimited number of new tax credits. I am sure Elon Musk is thrilled about his unlimited new tax credits to him, and I am sure all of our prices will go down based on Elon Musk's new multibillion-dollar tax credit that he gets. Again, the bill is the Inflation Reduction Act.
There is a new fee on methane that will raise the price of natural gas, which has been estimated to raise the price of our natural gas to the consumer by 17 percent--a 17-percent increase on our natural gas. Now, let me remind you that this is the Inflation Reduction Act that will increase the price of our heating, of our cooking, and of our energy production--17 percent.
There is a new tax on imported oil and new fees on domestic oil produced on Federal lands.
There are new inspection fees and owners' fees on pipelines. I do not understand how new fees and new taxes on oil and gas are supposed to lower the price of natural gas and of gasoline, but that is what is being declared in the Inflation Reduction Act. If only we had more taxes on oil, gas, and natural gas, then prices would somehow magically go down.
As has been mentioned multiple times on the floor, this Inflation Reduction Act hires more than 80,000 new IRS auditors, with no limit on whom they can audit. If you thought that there would be a limit to those people making $40,000 or more on being audited, you were wrong. Now, that could have been in this bill, but they chose not to put it in this bill. There are no guardrails for who can be audited by the IRS with billions of dollars being allocated to new IRS agents. Every single American in every income bracket, every small business, and every large company--everyone--is going to experience new IRS audits in the days ahead.
Remember this night. Remember this night. In the next 10 years, when you get an IRS audit, it was the Democrats in this body who sent the IRS to your house. So keep your records because IRS audits are about to dramatically go up due to the gift of the Inflation Reduction Act.
Maybe this bill should instead be called the CPA Hiring Act because I assume millions of taxpayers who struggle under our complicated Tax Code already will now have to hire a CPA knowing their chances of being audited are greatly increasing now. They know the complicated rules of the IRS. Most taxpayers I talk to submit their tax forms every year and hope they get it right because it is so complicated, but because of this night and this vote, there will be auditors coming after you to make sure that you got it right.
The Democrats, in the days ahead, when the IRS comes to this body for a hearing, will be asking them: Did they pull in additional money based on the audits they gave them? They are not telling you this, but they assume the IRS will collect $200 billion more once they give them these new auditors. You can be assured that that is going to be a metric that is going to be checked in the days ahead. The IRS will suddenly be like the smalltown police force that has a quota for writing tickets on the highway through their small town in order to help pay for the new city hall. If you have to pay for city hall, you need to write more tickets on the highway. It is about to be that way with the IRS. They need to audit more and go get more because we gave you more people.
Remember, this is the Inflation Reduction Act. I have yet to figure out how Americans getting more audits reduces inflation, but as has been advertised, this is going to bring down the cost of groceries, and this is going to bring down the cost of gas by more people getting audited by the IRS.
One of the other interesting plans in this bill to reduce inflation is to force more Americans to join a union. Now, I have to tell you that I have no angst against unions. Unions are a choice. Those individuals should be able to choose to join a union and be a part of collective bargaining as an American right and privilege.
Let me say this: 10.3 percent of the American workforce is union-- 10.3 percent. In the energy portion of this bill, which is billions and billions and billions of dollars, the unions get billions of dollars, and nonunion workers get nothing. So, if you work in the energy sector right now and if you are not a union employee, you are about to get cut out because the way this bill is written it gives Federal payouts to companies that use union laborers, which will make nonunion energy companies uncompetitive and will force them out of business or force them to unionize.
Quite frankly, this bill should be called the Mandatory Union Bill of 2022, not the Inflation Reduction Act, because I am not sure how forcing more people into a union reduces inflation, but that is a major portion of this bill.
I am confident the union bosses across the country are thrilled to finally see a return on their investments since they gave heavily to Democrats in 2022 to get them elected, and this is their payoff. There will no longer be 10.3 percent of workers in unions. This is going to force more companies to have to unionize or they will not be able to survive because of the Federal credits that only go to companies that hire union labor. Does forced unionization sound like the solution to inflation reduction to you? It does to apparently half this body.
It creates a subsidy in health insurance to be announced right before the fall elections this fall. And it is not for those who are in poverty. Those who are in poverty, all the way up to 400 percent of poverty, already get healthcare subsidies. Oh, no, this is not for those folks at the poverty level--200 percent, 300 percent, or 400 percent of poverty; this is a family of four making $200,000 who will get this healthcare subsidy.
What do the economists think will happen with this new subsidy? They believe employers will drop their health insurance and will push employees under the government Affordable Care Act policies and will shift more and more people onto the government rolls. Remember, this is the Inflation Reduction Act.
As homelessness increases across the Nation right now, the bill adds $1 billion into HUD for zero emissions electricity generation in affordable housing. That is what it is called, zero emissions electricity generation in affordable housing. It is not about increasing access to housing for those who are homeless; it is solar panels in public housing. I am confident the people who are living on the street, trying to survive a 9-percent inflation rate, are really not hoping that they can find someplace with a solar panel, but that is what is in the Inflation Reduction Act of 2022, solar panels in public housing. That is their solution to solving inflation.
While many of us have been pushing back hard to block China from buying more land in the United States, this bill actually gives ag subsidies to land owners regardless of who is the owner of the land. They don't have to be a U.S. citizen. They don't have to be American ownership. We are literally opening up that to owners of land to be able to get access to it.
I have also heard over and over again that there are no new taxes in the Inflation Reduction Act. I have heard that in national media from my Democratic colleagues saying it over and over again and on this floor. Well, it seems to be true. If you are a green energy company, that is true; there are no new taxes for you. They will have huge tax breaks. And while there is a push for everyone to have a 15-percent minimum tax, that is not exactly true for those folks who are in these green energy companies that are major Democrat donors. They will not have that same minimum tax standard.
But the Tax Foundation found this. This is their quote:
On average, tax filers in every quintile would experience a
drop in after-tax incomes.
Let me run that past you again. ``On average, tax filers in every quintile would experience a drop in after-tax incomes'' if this bill passes. That means everyone in the country, under $400,000 and over $400,000 a year--everyone has a drop in after-tax income.
One of the new taxes that was just added into the bill today is the stock buyback tax. This is to punish companies that are listed on our stock exchanges that buy back stocks to raise the value of stock. Now, they buy back stock so that the stock value goes up. They are putting a tax on them to be able to punish them to try to prevent them from doing this. They make it sound like they are hitting the big, fat cat corporate CEOs and the guys on Wall Street, keeping the value of their stock lower. They are going to really stick it to the man--except 60 million Americans are invested in a 401(k) plan for their retirement. Sixty million. The largest owners of stocks in America are retirement plans, insurance companies, and nonprofits. Google ``largest owners of stocks.'' So the people who will be hurt the most in this new plan to drive down the stock market prices are nonprofits, insurance companies, and retirement plans. Fifty-eight percent of Americans own some kind of stock.
This is a tax directly and deliberately designed to keep the price of individual stocks from going up. Sure, that is going to hurt CEOs who own their own stock, but it is also going to hurt everyday Americans who just own stock on their own, and it is going to hurt all of those retirement plans. But they seem not to care whom they hurt in this as long as they can also hurt CEOs. Driving down the stock market will, I guess, reduce inflation, if that is their plan in their Inflation Reduction Act, is to drive stock prices lower for retirees and nonprofits and individual investors.
Another new tax that was added today is a 15-percent minimum tax on businesses that are funded by private equity. I have to tell you, this one shocked even me when it got slipped in today. Most companies that are funded by private money are small businesses, research companies, small manufacturing companies. This adds a new 15-percent tax on those small businesses.
Basically, if you are owned by private money or funded by private money separate from the owner itself, you are considered a subsidiary, and so you get this big tax laid on you.
Let me give you an example of this. I know directly a company in Oklahoma that is a small manufacturing company. They are funded by private outside money. During COVID, my Democrat colleagues had the same vendetta against manufacturing that was funded by private equity. This particular company, unlike every other company across the country during COVID, could not get access to the Paycheck Protection Program because Democrats said: If you are funded by private outside money, then we are not going to get you access to that because you are in evil private equity areas--even though they are vastly small businesses.
This particular manufacturing company in Oklahoma produces valves. This valve company had hundreds of employees before COVID. Once COVID happened and business dropped off immediately, because they couldn't get access to the Paycheck Protection Program like every other small business, they laid off hundreds of workers. Those workers weren't rich folks. Those were folks turning a wrench and making a great product that a lot of people wanted. They got laid off simply because of how they were funded.
Now my Democratic colleagues want to jump right on top of them at the end of COVID, as the company is finally starting to come back and they are hiring people back, to now slap a brandnew tax on top of them that no one has discussed, no one has evaluated, and no hearings have occurred on it to determine how wide and how broad this will be. Literally, the owners of this company will wake up tomorrow morning, because in the middle of the night, a new tax got added onto them right at the tail end of COVID simply because my Democratic colleagues don't like any company--regardless of what they do, regardless of the workers who actually work there, they don't like how they are funded through private individuals who fund them.
This bill doesn't lower inflation. I listed a lot of things. Can a single American go: Oh, that will take down inflation; that will work. None of those things take down inflation.
It also doesn't reduce the deficit. Brace yourself for this. Their plan for reducing the deficit is not doing programs they were already not going to do. That is their plan. That is the deficit reduction.
Let me give you an example of this. Let's say you are going through Walmart, shopping, and you are with your shopping cart. You step aside to be able to get something off the shelf, and when you turn back around, somebody has stuck in your basket a big bag of frozen brussels sprouts. Now, you didn't put them in there; somebody else put them in there.
As you go through the aisle, you look down and you see this big bag of brussels sprouts. I don't know about you, I don't want frozen brussels sprouts. Maybe some of you love those. Great. But if somebody slipped a bag of frozen brussels sprouts into my cart, I would put it back. I would put that away and say: No, I am not going to buy that. Somebody else put that in my cart.
Here is what I wouldn't say. I wouldn't say: Somebody put a bag of frozen brussels sprouts in my cart. I am going to put it back on the shelf. That is deficit reduction in my cart. I wouldn't say that.
Here is what I mean by that. During the end of the Trump administration, they laid the groundwork for seniors to get a rebate at the pharmacy counter for Medicare prescriptions to make sure that every senior got a discount at the pharmacy counter. That was the plan. That is what the Trump administration put in place.
When the Biden administration came in, they didn't like that plan to give discounts to seniors at the pharmacy counter, so they set that plan aside and said: We are not going to do that. Instead, they have come up with this new plan that I will explain in just a second. But they are saying that because they didn't do the plan that Trump was planning to do, because they didn't do that plan, that is $100 billion in savings by not buying what they never intended to buy, ever.
Let me just tell you, if you don't buy the brussels sprouts, you just don't have the brussels sprouts, but you are not saving the money from that. You just didn't get them. That is not real savings. So when they say it is deficit reduction, it is because they are not doing what they never said they were going to do, and now they are magically calling it deficit reduction. That is not real reduction of the deficit; that is a budget gimmick in Washington, DC--a huge budget gimmick. Can I just say, the Emperor has no clothes. It is not real.
In the place of this rebate rule, in its place, they have created a real method of price controls for some drugs. And it is not price negotiations; it is price controls. They are spending $3 billion to set up a system for the government to be able to select prices on one of the most used drugs in America.
By the way, it starts in 2026, is when this starts. I have heard some people on the floor say: We are going to have lower prices right away. This plan starts in 2026. It wouldn't actually affect anyone's pharmaceuticals until 2027. So if you are planning on a reduction in prices, it is not coming soon; it is 5 years away, if there is a price decrease at all.
The way it is set up is the President, whoever that may be 5 years from now, will have a new authority not to negotiate prices in the next 10 years. It is not a negotiation, it is setting the price, because if you disagree with the next President, whoever the next President is, and what they set on the price, they can raise the taxes on your company 95 percent. So if you disagree with the price that they pick, whoever the next President is, what they pick for the price, then your company gets hit with a 95-percent tax. How does that sound for government sheer power over a company, to crush whoever they choose? That is how this is set up. You don't follow what I say, we will crush your company.
What does that mean for the future? Drug companies will have new incentives to not use existing drugs for new
treatments because here is how it typically works: If a cancer drug works for lung cancer, then they start experimenting with other types of cancer to see if it works on those. But in this system the Democrats are setting up, if a drug works for lung cancer, they have a disincentive to try it on other cancers because if the drug gets too used, then it falls into this new negotiation category. So the incentive for the drug companies is not to try new ways of using this drug for fear of getting too big.
Can I tell you what this looks like in real life? I have a friend at home whose wife has pancreatic cancer, and they are desperately trying every treatment and trying to get into every clinical trial they can get into, desperately. They are praying, and they are working, and he is being an awesome husband, and she is being a tough warrior going through nausea and pretty awful treatments. They are trying to get into clinical trials, which is already hard. This bill will make it even harder because existing cancer drugs will have a disincentive to test out new ways to be able to serve their cancer. Thank you very much to my Democratic colleagues who are reducing the number of cancer cures for the future. How does that cure inflation in the Inflation Reduction Act?
There is also a special little feature in it, in the way the drug piece is set up, that it incentivizes more IV drugs and fewer oral drugs because IV drugs get more time and oral drugs get less time. So the incentive is to set up IV drugs instead--for the drug companies.
So for all of us who would prefer taking a pill than taking a drug intravenously, tough luck. Democrats prefer IV drugs to oral drugs. So, in the future, when you are taking an IV instead of an oral medication, it is because of the Inflation Reduction Act of 2022.
Can I just remind everyone that Medicare has insolvency in 6 years-- 2028. This Inflation Reduction Act takes the savings from this new prescription plan from Medicare and takes it out of Medicare. It doesn't stabilize Medicare, which is going insolvent in 6 years. It takes it out of Medicare and moves it over to the Affordable Care Act subsidies.
It literally takes money designed for 76-year-olds on a fixed income and gives them to 26-year-olds and their family making $200,000 a year. That is the Inflation Reduction Act of 2022. By the way, did I mention, again, that those subsidies land right before the election this fall?
This bill is three-quarters of a trillion dollars that not a single person in this Chamber has read--755 pages of it--that came out a few hours ago. The media, which also hasn't read this bill, continues to be able to talk about what a great plan it is for inflation reduction. They continue to praise the bill, though they have read the same things: It doesn't reduce inflation; it doesn't reduce the deficit.
They have joined in the chorus talking about the beauty of the emperor's new clothes. I am willing to say what a lot of people in this room know in their gut but they are afraid to say. It doesn't reduce inflation. It doesn't reduce the deficit. The emperor has no clothes.
Let's reject this bill.
I yield the floor.