Congress, in a move that redefines the term largesse, passed the Inflation Reduction Act of 2022 (IRA22). Half of the $740 billion bill is intended to address climate change. And how is the government going to pay that price tag? It starts with a 15% tax on corporations with higher than $1 billion of annual financial statement income.

As we sort through the details of IRA22 to analyze its potential impacts on the meat and poultry industry (more on that below), first I would liken the development of this bill to the tale of Robin Hood and his merry men (and women). How so? Let me set the cast of characters:

Robin Hood — Biden

Maid Marian — Pelosi

Sheriff of Nottingham — McCarthy

Friar Tuck — Manchin

Little John (or Jane) — Sinema

King Richard the Lionheart — Schumer

Sherwood Forest — Congress

Nottinghamshire — US

It was a sad time in Sherwood Forest (US Congress) before the development and passing of IRA22. Robin Hood (President Biden), in his campaign to lead his band in Nottinghamshire (US) had proposed the Build Back Better (BBB) program. Unfortunately, even though Maid Marian (Speaker Pelosi), Robin’s erstwhile Congressional compatriot, did her best to move Mr. Hood’s BBB program along, it failed. Throughout the Sherwood Forest, there were cries of scorn and derision. To the rescue came King Richard (Senator Schumer), who had another idea how to resurrect BBB, and that was IRA22. King Richard appealed to Friar Tuck (Senator Manchin) and the two, conspiring in a distant den of the Sherwood Forest, wrote IRA22. But wait, Little Jane (Senator Sinema) was not convinced and said, “not yet,” to King Richard’s proposal. But, she soon came around and IRA22 was favored by the rest of Robin’s Sherwood Forest band. Into this breach stepped the Sheriff of Nottingham (Congressman McCarthy) decrying the cost of IRA22 and wondering how it would be paid for. But, the majority of the Robin’s band approved it.

And that’s how to take from the rich and give to the poor in both the 13^th and 21^st centuries.

Try as I might, other than the tax implications, I could not find how IRA22 would affect us in the meat and poultry business, but I know it’s buried in the IRA22 weeds somewhere. IRA22 has a goal of cutting greenhouse gas (GHG) emissions by an estimated 40% below 2005 levels by the end of the decade, by injecting $369 billion into climate and energy programs. Because little is said in the bill’s summary about our direct contribution to GHGs, that might give us an opportunity to further develop programs ourselves to reduce our industry’s GHG emissions before having it thrust down our throats.

By its very title, IRA22 implies spending $740 billion will curb inflation, slow global warming and reduce the cost of prescription drugs. Altruistic, indeed. Unfortunately, both the Congressional Budget Office and the Penn Wharton Budget Model suggest that IRA22 will have no statistically significant effect on inflation. Just like Robin Hood’s merry band of “thieves” giving largess to the woeful inhabitants of Nottinghamshire, we are now strapped by the $740 billion Inflation Reduction Act of 2022 in the sure and certain hope that it will, indeed, curb inflation, halt climate change and reduce drug costs; but it does worry me that it won’t.

Robin Hood and the Inflation Reduction Act of 2022

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