(Headline USA) Twenty-one Republican governors called the Inflation Reduction Act “another reckless tax and spending spree” in a joint statement released Thursday.
The legislation, dubbed the “Democrats spending bill” by Republicans, would reduce the federal deficit, Senate Democrats said in a summary.
But the $740 billion bill would hurt all Americans, the Republican governors said.
“While denying recession, Democrats want to raise taxes on businesses and manufacturers, which will force higher costs onto consumers, worsen inflation, and aggravate shortages,” they said in the letter.
“With sky-high prices at the pump, the last thing Americans need is for Democrats to punish energy producers, which will ultimately hurt working families struggling to pay for gas, goods, food, and utilities.”
Democrats maintain the measure would reduce inflation by investing taxpayer dollars into domestic energy production and manufacturing and lowering carbon emissions by 40% by 2030.
Republicans have maintained that Biden’s policies hindered energy production in the oil and gas industry, leading to record high gas prices this summer, which in part contributed to 40-year high inflation.
They point to Biden’s executive orders ending new leases for oil production on federal lands, ending the Keystone Pipeline construction and other restrictions on the industry.
Democrats say their bill also would allow Medicaid to negotiate prescription drug prices, something critics say will discourage investment in new treatments.
The Affordable Care Act also would be extended for three years under Democrats’ plans.
The bill also includes up to $7,500 in tax credits on the purchase of an electric or fuel cell vehicle made in America.
Large corporations would be required to pay a minimum 15% tax and the measure would not raise taxes on Americans making less than $400,000 a year, according to remarks by Biden.
The joint statement opposing the Inflation Reduction Act was made by many Republicans, including Fla. Gov. Ron DeSantis, Texas Gov. Greg Abbott and Va. Gov. Glenn Younkin.
Adapted from reporting by the Center Square