“This historic act creates significant investments in energy, health care, and strengthens the nation’s tax system. These investments will fight inflation and reduce costs for American families. while setting the stage for a strong, stable, and broadly shared long-term economy,” 126 economists said in a note. letter
sent to congressional leadership on Tuesday, first obtained by CNN.
The letter was signed by key economists including former Clinton Treasury Secretary Robert Rubin and Obama Treasury Secretary Jack Lew, Obama Labor Department chief economist Betsey Stevenson, Moody’s chief economist Mark Zandi Analytics, former Director of the Congressional Budget Office Doug Elmendorf, and Nobel Prize-winning economist. Joseph Stiglitz, among others.
A source close to the matter said: “This started meeting last weekend with a number of signatories coming together to discuss how they could highlight the economic value of the bill and push back a There’s a lot of incorrect economic information surrounding it”. .
Economists touted the bill’s historic $369 billion investment
in combating the climate crisis and, they wrote, it would “rapidly and dramatically reduce the cost of health care for families” by allowing Medicare to negotiate the price of certain prescription drugs, along with the extension of the subsidies expands the Affordable Care Act.
The group wrote that those investments “will pay off more than outright,” pointing to the provision that imposes a 15% minimum tax rate on certain companies.
The proposal addresses some of the country’s biggest challenges on a substantial scale, the economists said.
That relief comes as prices continue to rise, with inflation hitting a 40-year high. The latest data from the Bureau of Labor Statistics shows Inflation surges to peak in pandemic times
in June, with consumer prices in the US up 9.1% year over year.
The bill, negotiated by moderate Democratic Senator Joe Manchin of West Virginia and Senate Majority Leader Chuck Schumer of New York, is currently going through a technical process with senate member
called the “Byrd Bath”, a test designed to remove irrelevant terms from the law using the mediation process. Once the legislation has gone through that process, Democrats will be able to pass the bill with a simple majority. However, it remains to be seen whether Sen key. Cinema Kyrsten
a moderate Democrat from Arizona, will vote with her party on the law.
Schumer said Monday he expects the congressman’s process to be complete and the Senate to vote on the bill this week before recess in August.
“This week the Senate will act on a groundbreaking piece of legislation, one that we haven’t seen in decades,” he said on the Senate floor. “In the coming days, both sides will continue their conversations with MPs to move forward with the bipartisan ‘Byrd bath’ process. Our timeline has not changed and I expect to bring legislation to the table. this to the Senate to begin voting this week.”
Some economists have said the law will do very little
to curb rapidly rising prices, especially in the short term. Moody’s Analytics estimates that the law will have a “small” impact on inflation, and the Penn Wharton Budget Model also indicates it will have little impact on prices.
And Republicans in the Senate oppose the law point to an analysis
from the nonpartisan Joint Committee on Taxation, said the bill would raise taxes on Americans.
Kimberly Clausing, one of the signatories of the letter and an economist at UCLA Law School, countered the JCT analysis, proposed in a tweet
that it is incomplete.
Clausing writes: “Many key factors are omitted from these tables, including, importantly, the impact of deficit reduction, the positive impact of clean energy spending, and the benefits of falling drug prices. “.
CNN’s Tami Luhby, Matthew Egan and Ali Zaslav contributed to this report.