Originally estimated to only cost about $370 billion, a new study by the Cato Institute finds that the structure of subsidies in the Inflation Reduction Act means taxpayers could be on the hook for trillions of dollars over the next 25 years.
Loucks and his co-author Travis Fisher, director of energy and environmental policy studies at the Cato Institute, explained that the impetus for doing the study was the wildly varying estimates of the costs of the IRA that came out since its passage. While the CBO pegged the figure at $369 billion, Goldman Sachs estimated in May 2023 that it would be closer to $1.2 trillion. There were other estimates as well, all coming to different conclusions.
Not only does the IRA just pile on more government spending, he said, it doesn't do anything to address climate in any meaningful way. "It just funnels money to special interest groups and does nothing to really address how we're going to transform our economy in a way that is equitable and beneficial for all Americans," Loucks said.
Fuzzy math.
Loucks and his co-author Travis Fisher, director of energy and environmental policy studies at the Cato Institute, explained that the impetus for doing the study was the wildly varying estimates of the costs of the IRA that came out since its passage. While the CBO pegged the figure at $369 billion, Goldman Sachs estimated in May 2023 that it would be closer to $1.2 trillion. There were other estimates as well, all coming to different conclusions.
Not only does the IRA just pile on more government spending, he said, it doesn't do anything to address climate in any meaningful way. "It just funnels money to special interest groups and does nothing to really address how we're going to transform our economy in a way that is equitable and beneficial for all Americans," Loucks said.
Biden’s Inflation Reduction Act could end up costing taxpayers nearly $5 trillion, study says
An expensive legacy: Originally estimated to only cost about $370 billion, a new study by the Cato Institute finds that the structure of subsidies in the Inflation Reduction Act means taxpayers could be on the hook for trillions of dollars over the next 25 years.
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Fuzzy math.
