Well, well, well, brace yourselves for the latest chapter in the financial absurdity orchestrated by President Joe Biden – the Inflation Reduction Act (IRA). But surprise, surprise! The numbers just keep climbing, folks! The Congressional Budget Office (CBO) just spilled the beans, and it turns out the cost of Biden’s climate escapade is not a mere blip; it’s a jaw-dropping $428 billion more than we were initially force-fed.
The CBO, in its infinite wisdom, casually revealed this budgetary bombshell in its recent economic outlook. Of course, they’ve left the door wide open for these numbers to shift like the sands, citing vague variables like the deployment speed of eco-friendly gadgets, the surge in electric vehicles, and how many taxpayers still need to cash in on certain tax credits conveniently tucked away in the IRA.
Now, rewind to 2022 when the CBO pegged the IRA’s climate and energy provisions at a cool $400 billion. But oh no, that wasn’t gloomy enough for some. Cue Credit Suisse, swooping in with their estimate of over $800 billion, which now seems like a crystal ball revelation.
Technical revisions, the magical phrase in the land of financial projections, were the architects behind this budgetary betrayal. Clean vehicle tax credits and the loot from excise taxes on gasoline took center stage, contributing a whopping $224 billion to the fiscal fiasco. Projected revenue cuts contributed a grim $151 billion, while the surge in projected outlays added another $73 billion to the financial dumpster fire.
And guess who made a guest appearance? The Environmental Protection Agency (EPA), proposing stricter vehicle emissions standards starting in 2027. Because nothing screams fiscal responsibility like regulatory decisions that send costs skyrocketing.
But wait, there’s more! Treasury guidance took an unexpected solo, deciding that credits claimed by businesses for leased vehicles would face fewer restrictions than those claimed by mere mortals. Surprise, surprise – electric vehicle leasing shot up, defying previous estimates. Bravo, Treasury, for this brilliant act of financial wizardry!
Now, stepping back from the immediate financial horror show, let’s take a gander at the broader economic wasteland. According to the CBO’s crystal ball projections, our nation’s deficit is gearing up for a wild ride, reaching a mind-boggling $2.6 trillion in 2034 from the current $1.6 trillion. Hold on to your wallets, folks – the deficit is set to reach 6.1% of GDP in 2034, a level we haven’t seen since major crises like World War II, the 2007-2009 financial meltdown, and the COVID-19 pandemic.
And as if that’s not enough, the public debt is gearing up for a skyrocketing act, reaching 116% of GDP by 2034 – a monstrous $48.3 trillion. The debt drama doesn’t stop there; it’s expected to swell to a jaw-dropping 172% of GDP in 2054. That’s right, we’re talking about a whopping $26.2 trillion by the end of this fiscal year.
In conclusion, Biden’s IRA financial circus isn’t just a performance; it’s a reckless spectacle of soaring costs, deficit crescendos, and debt-driven despair. As we navigate this economic horror story, it remains to be seen whether we’ll be left with the echoes of financial dissonance or a flicker of fiscal sanity. Fasten your seatbelts, folks – we’re in for a bumpy fiscal ride!