Sen. Shelley Moore Capito, R-W.Va., said the Inflation Reduction Act now supported by Sen. Joe Manchin is “inexplicable to me” at a time of high inflation.
Capito held a virtual press briefing from her Washington office Thursday and said the last thing that should happen now is to “flood more federal dollars into the system.”
The $739 billion act has money earmarked for debt reduction, energy production (including renewables), the IRS, prescription drug price reform and expanding the Affordable Care Act for three more years.
“I think it will fuel the fire of inflation even more,” she said, referring specifically to money for green energy and the 15 percent minimum corporate tax.
Capito said it will impact West Virginians because any time taxes are raised, inflation goes up, and the federal government cannot be spending more and taxing more.
She also criticized any money earmarked for green energy. “it is not what we should be doing.”
“It is laden with handouts to green and renewable energies,” she said. “That puts our natural gas and coal markets at an even greater disadvantage than they have right now.
Although she said she supports moving toward renewables and electric vehicles, it can’t be forced until the product is ready.
With so many things electronic, “where are we getting all of this electricity?” she said.
She said the bill is a way to “raise your taxes and spend, spend, spend.”
Capito said she did talk to Manchin on Wednesday night, “but he did not mention this (the Inflation Reduction Act).”
Capito did support the $280 billion Chips and Science Act, though, which passed the Senate 64-33 on Wednesday.
That bill will include $52 billion in subsidies to domestic semiconductor manufacturers and invest billions in science and technology innovation.
Capito said the bill will help bring more manufacturing, research and development that will help to compete better with “amped up” China, which has taken over the chip manufacturing that “has hampered our technologies.”
“I think these are investments that will actually result in more job creation, higher wages and other things,” she said.
“Why would you laden another $800 billion on to feed what I think is a political philosophy that has been rattling their swords, so to speak, the green energy folks, and they have been very disappointed and we are looking at an election, so this is a political instrument that is way, way over the top.”
However, the Chips bill did not receive support from all Republicans.
Rep. Morgan Griffith, R-9th District-Va., voted against the measure.
“I want the United States to compete and win against China in the global economy and support efforts that would enhance our country’s position,” he said in a statement after his vote. “The CHIPS-Plus bill that the Senate sent to the House does not do so. If the bill simply supported domestic production of semiconductors, I would have looked at it favorably. Instead, the bill was loaded with extra spending and bad policies that would not benefit American economic performance. It doles out more money for the National Science Foundation than for semiconductors. In fact, it doubles the amount authorized for spending on the National Science Foundation. Further, it authorizes projects with little relevance to economic competitiveness, such as ocean acidification research.”
Griffith said that, as is often the case in Washington, a popular proposal “gets tied together with unrelated matters. Both the Senate and House bills included far too many provisions pushed by both Democrats and Republicans with little relation to semiconductors. It is a poor way to do the nation’s business.”
“Our country now confronts economic difficulties that highlight the need for targeted and effective legislation,” he said. “CHIPS-Plus fails to meet this standard.”
Capito also said she was disappointed in the latest the news on the economy which says the GDP (Gross Domestic Product) is showing “negative growth,” and economists say if you have two quarters of negative growth “you are in a recession.”
“We are sure feeling it,” she said.