The enormous amount of green tax benefits that Joe Biden squeezed in the Inflation Reduction Act would end up costing many times what they originally cost, damaging America’s fiscal destiny.
Through the following ten years, the list cost of the IRA’s green tax breaks had been $271 billion. It’s already awful, but the truth is even terrible. The cost is much higher, according to recent research.
The exact amount is estimated to be north of $1 trillion by Goldman Sachs (yep, you read that correctly), whereas the Brookings Institution’s bean counters are hardly supporters of the GOP estimate it to be $780 billion.
What causes the significant gap between the reported cost and the actual amount?
Tax incentives centered mostly on creative manufacturing and electric automobiles, two fields popular with rich Democrats and teaming with CEOs with political influence.
According to Goldman Sachs, the EV credit is expected to climb 2,700% from its initial cost of $14 billion to roughly $393 billion. The Brookings estimate is remarkably similar.
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