But it looks as though the Inflation Reduction Act will do just that. While the bill works to reduce the deficit by close to $200bn (£165bn) over the next decade, according to the Tax Foundation in Washington DC, it is also expected to bump up inflation slightly in the process as the bill doubles down on subsidies.
The Penn-Wharton Budget Model, produced by the business school at the University of Pennsylvania, estimates that the Inflation Reduction Act will hike inflation temporarily for the next two years: the worst timing for further price rises, as Americans are already dealing with inflation at 9.1pc on the year.
Meanwhile the non-partisan Joint Committee on Taxation estimates that the bill will raise taxes within every income bracket, worsening the burden on households and breaking Biden’s pledge not to raise income tax for workers earning less than $400,000 a year.
The bill commits the government to spending an additional $260bn over the next decade, and it also sees taxes go up by $300bn. The Tax Foundation backs up these estimates, and forecasts that GDP will take a 0.1pc hit from the bill, with 30,000 jobs jeopardised.
One can make the case that healthcare subsidies are a priority or green energy, but it is emerging as disingenuous to claim that what makes up this bill will have a deflationary impact. The handouts in the bill will likely fuel inflation, while other aspects of the bill will work against economic growth. The US’s decision to follow in the footsteps of Britain’s corporate tax hikes brings with it the same concerns over business investment and knock-on effects on employee pay (which often takes the hit when corporation tax goes up).
It’s been a big talking point for Liz Truss in the Tory leadership debates that no other major economy is increasing taxes now. She will no longer be able to make this point, as Congress looks set to pass the bill. But Rishi Sunak will take little comfort in the comparisons that may be drawn between him and Biden now, who would both be viewed as tax hikers as higher inflation looms.
But the biggest losers continue to be the residents in both the US and the UK, who are suffering from higher prices and stagnant growth. At least politicians in Britain are slightly more serious about addressing these issues; doing their best to concentrate on policy rather than wordplay.
Kate Andrews is economics editor at The Spectator