Massive government spending programs typically cost more than projected. At some point, one might even call it a pattern.
The latest example is the ill-named Inflation Reduction Act, which Democrats rammed through last August. The main thrust of the legislation was to push a radical green agenda. It included consumer tax credits for electric vehicles and roof-top solar. The bill gave corporations access to hundreds of billions in tax credits for clean energy projects. It also provided the U.S. Department of Energy $12 billion to craft a new loan program for replacing and upgrading energy infrastructure.
Democrats wanted to convince the public that massive subsidies for otherwise unattractive renewable energy projects would reduce the nation’s debt. The bill also boosted funding for the IRS. In theory, increased enforcement would increase tax collections. That was supposed to net the government $130 billion over 10 years. The legislation raised corporate taxes by more than $200 billion. It allowed Medicare to negotiate prices of prescription drugs. The Tax Foundation projected drug pricing provisions would save almost $300 billion over the decade.
