Despite several private analyses suggesting the opposite, the White House stands by President Joe Biden’s initial assertion that the Inflation Reduction Act (IRA) will cut the federal deficit, according to Reuters Friday.
Kent Smetters, faculty director of federal budget watchdog Penn Wharton Budget Model, said he now estimates that the bill will add roughly $750 billion to the national deficit over the next ten years — a cost increase of roughly $1 trillion from Penn Wharton’s initial estimates — joining analysts at Credit Suisse and Goldman Sachs who believe that the government dramatically underestimated the cost of tax credits, according to Reuters. Nonetheless, an unnamed White House official told the outlet that there was “pretty good certainty” that the bill would “reduce the deficit in the long run.”
The White House did not immediately respond to a Daily Caller News Foundation request for comment.
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