Nick Novak Explains How the Inflation Reduction Act Would Increase Energy Prices

MADISON – The Inflation Reduction Act headed to President Joe Biden’s desk could change how Americans get energy.

With a big piece of the legislative package focused on climate change, Wisconsin is likely to feel the effects of the austerity measures, given the state’s reliance on coal and natural gas.

in a state that relies on coal and natural gas for its electricity some businesses fear costs will be passed on to consumers.

“This bill makes energy more expensive, and it makes manufacturing more expensive, and it makes final goods more expensive,” Nick Novak with Wisconsin Manufacturers and Commerce (WMC) said.

The state’s chamber of commerce previously sent a letter to lawmakers urging them to oppose the legislation. Given that a significant amount of electricity is consumed for manufacturing, the chamber is concerned that an increase in taxes on the products used to get electricity will also lead to a price hike for goods.

“There’s billions of dollars of tax increases on coal and natural gas, which is a big problem here in the state of Wisconsin because about three-quarters of electricity production comes from coal and natural gas,” Novak said.

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