KJP Calls Joint Tax Committee Report “Incomplete”; Penn Wharton and Moody’s Both Say Inflation Reduction Act Won’t Curb Inflation

On 8/1/2022, KJP dismissed the Joint Committee on Taxation’s finding that the Inflation Reduction Act would raise taxes on those making under $400,000 as “incomplete.” Doocy reminded her the same body had been “heralded” by the administration when selling the infrastructure bill. Both Penn Wharton and Moody’s Analytics concluded the legislation would do “little to curb inflation,” with Penn Wharton projecting it would actually increase inflation in 2024. Biden himself admitted on the American Rescue Plan: “I make sure I don’t make that mistake again.”

JCT Report: “Incomplete”

Doocy pressed on Biden’s broken promise. “Biden promised it wasn’t going to raise taxes on anybody making less than $400,000 a year, but the Joint Committee on Taxation says that is not true,” Doocy said.

“That isn’t correct because the JCT report is incomplete,” KJP said. “It omits the actual benefits that Americans would receive — prescription drugs, lower energy costs, utility bills.”

Doocy caught the inconsistency. “The Joint Committee on Taxation, which you guys heralded as an effective body when you were selling that infrastructure package, is not to be trusted here?” Doocy asked.

KJP cited outside experts who said the JCT analysis was missing key provisions. But the core finding — that the bill would raise taxes on middle-class Americans — remained unrefuted.

Penn Wharton: Inflation Will Increase in 2024

A reporter cited the Penn Wharton Budget Model. “Penn Wharton says this Inflation Reduction Act is actually going to increase inflation in 2024. Does the president worry about that?” the reporter asked.

“We agree with Senator Manchin and disagree with Penn Wharton, as do a number of qualified experts,” KJP said. She then pivoted to attacking Republicans: “It is quite ironic that congressional Republicans have a false outrage when they have offered really nothing.”

A reporter noted both Moody’s Analytics and Penn Wharton reached the same conclusion. “Both said this legislation would do little to curb inflation,” the reporter said.

Biden: “I Make Sure I Don’t Make That Mistake Again”

Biden was confronted with his own record. A reporter reminded him that he had dismissed inflation warnings about the American Rescue Plan. “Most experts now believe that spending sparked the skyrocketing inflation. So why should Americans believe you now when you say this new bill will not exacerbate inflation?” the reporter asked.

Biden’s answer was remarkable for its candor. “I made sure I don’t make that mistake again. That’s the bottom line,” Biden said. “I was anticipating that we could help and do more, and everything that you’ve said here is correct, and I’m not countering that whatsoever.”

The admission that the ARP had been a “mistake” that caused inflation — while simultaneously pushing another massive spending bill — captured the central contradiction of the administration’s economic messaging.

55 Corporations Paying Zero

KJP defended the bill’s 15% minimum corporate tax. “There are 55 corporations in this country who make tens of billions of dollars and are paying zero dollars in taxes. This bill is going to fix that tax loophole and make the tax code fairer,” KJP said.

The National Association of Manufacturers warned the minimum tax would target accelerated depreciation used by factory owners, potentially undermining Biden’s goal of increasing domestic manufacturing.

Pelosi Trip to Taiwan

Reporters pressed on reports that China was threatening to shoot down Speaker Pelosi’s plane if she visited Taiwan. “Where is the president coming out to respond?” a reporter asked.

“We have said there’s no need for this type of saber-rattling. It is unnecessary,” KJP said, adding she had “not seen those reports.”

Key Takeaways

KJP dismissed the Joint Committee on Taxation’s finding that the IRA would raise taxes on those under $400,000 as “incomplete” — after the same body was “heralded” for the infrastructure bill.
Penn Wharton projected the IRA would increase inflation in 2024; Moody’s said it would do “little to curb inflation.”
Biden admitted the ARP was a “mistake” on inflation: “I make sure I don’t make that mistake again. Everything you’ve said is correct.”
The 15% minimum corporate tax was criticized by manufacturers as targeting depreciation that funds factory equipment.
KJP attacked Republicans for “false outrage” while offering “really nothing” on inflation.

Transcript Highlights

The following is transcribed from the video audio (unverified — AI-generated from audio).

The JCT report is incomplete. It omits actual benefits. You heralded this body when selling infrastructure. Is it not to be trusted now?
Penn Wharton says the IRA will increase inflation in 2024. We disagree with Penn Wharton.
Both Moody’s and Penn Wharton said this legislation would do little to curb inflation.
I made sure I don’t make that mistake again. Everything you’ve said is correct. I’m not countering that.
55 corporations making tens of billions are paying zero in taxes. This bill fixes that.
Republicans have false outrage on the Inflation Reduction Act when they have offered really nothing.

Full transcript: 863 words transcribed via Whisper AI.