When President Biden signed the badly misnamed Inflation Reduction Act, he claimed it would “achieve hundreds of billions in deficit reduction.” Several independent budget analysts reviewed the act’s newly enacted spending and tax increases and estimated its net impact on the growth of the national debt over the next 10 years. Here is a summary of their results:
The Penn Wharton Budget Model anticipates it will reduce federal budget deficits by $264 billion.
The Tax Foundation estimates the act will reduce the growth of the national debt by $324 billion.
The Committee for a Responsible Federal Budget predicts $330 billion in overall national