Republicans warned that the IRA would take us down a dangerous, fiscally irresponsible path to provide ever-ballooning subsidies, antagonize allies and, ironically, reward the very industries that are reliant on China. Unfortunately, what we warned of has come to pass, leaving Americans to deal with the fallout of these predicted consequences:
One consequence is the cost, which keeps rocketing upward by hundreds of billions of dollars. Cost estimates for the IRA’s energy tax incentives have increased markedly since the enactment of the law. Penn Wharton’s Budget Model originally estimated the climate and energy provisions in the IRA would cost nearly $385 billion. After new implementation details emerged, Penn Wharton revised the model, estimating the climate and energy provisions would actually cost upward of $1 trillion.