How would the inflation Reduction Act affect the budget deficit?



How would the inflation Reduction Act affect the budget deficit?

While the research-based organization at the University of Pennsylvania says that the Inflation Reduction Act “would reduce cumulative deficits by $248 billion” over a 10-year budget window, it would also “slightly increase inflation until 2024” and then decrease it thereafter.

How much will the inflation reduction act Save You?

$124 billion: savings over 10 years the Inflation Reduction Act will generate from collecting taxes already owed by wealthy people and large corporations, according to the Congressional Budget Office. And no family making less than $400,000 will see their taxes go up a penny. The Inflation Act will achieve hundreds of billions in deficit reduction.

What is the inflation reduction act of 2022?

The Inflation Reduction Act of 2022 allocates $80 billion to increase enforcement by the IRS. 3 Supporters of the measure hope that additional employees and better technology will allow the IRS to catch more tax cheats, especially among the ultra-wealthy. The CBO believes this could boost IRS revenue by at least $124 billion over the next decade. 4

What happened to the 2022 deficit reduction estimate?

On August 5, 2022, CBO issued a revision to the table published on August 3, 2022, to include estimates of spending for sections 13601 and 13802. As a result, the updated estimate of the deficit reduction was lowered by $11.0 billion over the 2022-2031 period.