On November 19th, the House of Representatives passed H.R. 5376 , the Build Back Better (BBB) Act, which is now under consideration in the Senate. PWBM estimates that H.R. 5376 includes $2.1 trillion in new spending and tax expenditures, offset by $1.8 trillion in new revenues and other savings. With consumer prices rising at the fastest pace in decades, policymakers have raised concerns about the legislation’s impact on inflation, especially if provisions scheduled to expire after several years were extended permanently. In this brief, PWBM analyzes BBB’s impact on inflation over the coming decade.
PENN WHARTON University of Pennyslvania