Perplixity: The Inflation Reduction Act was "Paid For"

Here's the result of a query to the AI-based Perplexity search engine: 

Was the Inflation Reduction Act actually "paid for"?

The Inflation Reduction Act (IRA) was designed to be "paid for" through a combination of new revenue measures and cost savings, according to official estimates and legislative summaries. The Congressional Budget Office (CBO) and Joint Committee on Taxation (JCT) projected that the law would raise approximately $738 billion in revenue, primarily from tax reforms (such as a 15% minimum tax on large corporations), enhanced IRS enforcement, and prescription drug pricing reforms. The authorized spending was estimated at $891 billion, with the difference expected to reduce the federal deficit.

Key revenue sources included:

• 15% minimum corporate tax on companies earning over $1 billion in profits. 
• Enhanced IRS enforcement to close the tax gap, targeting high-income earners and corporations.
• Prescription drug pricing reforms, including allowing Medicare to negotiate prices, which was projected to lower federal spending on drugs.

Independent analyses and government projections at the time of passage indicated the IRA would reduce the federal deficit over a 10-year period, meaning it was technically "paid for" in the sense that new revenues and savings would offset or exceed new spending. However, some critics argue that the burden of these revenues ultimately falls on taxpayers, either directly or indirectly.

It is important to note:

• Some recent estimates suggest the actual cost of the IRA could be higher than initially projected, especially as more programs are implemented and demand for incentives grows. This has led to debate about whether the law will ultimately be deficit-reducing as originally forecast.
• The law's impact on inflation and its distributional effects remain contested, but the mechanism for "paying for" the bill was clearly outlined in the legislative process and official analyses.

In summary, the Inflation Reduction Act was structured to be "paid for" through a mix of new tax revenues and spending reductions, with official estimates projecting a net reduction in the federal deficit over time. Whether these projections hold in practice depends on future implementation and economic conditions.