Cape Girardeau, Jackson chamber leaders on Inflation Reduction Act

Brian Gerau and Rob Gilligan said last week they echo Missouri Chamber of Commerce and Industry's concerns about the Aug. 7 U.S. Senate passage of the Inflation Reduction Act, a measure state chamber leaders call a "tax hike" on state businesses.

Brian Gerau

"It is important to note the Inflation Reduction Act could and most likely will lead to a 'pass through' tax to consumers, resulting in the loss of job creation due to business and industry having to cut in order to offset," said Gerau, who has headed the Jackson Area Chamber of Commerce since 2008.

Rob Gilligan, president and CEO of Cape Girardeau Area Chamber of Commerce since April, also offered misgivings.

Rob Gilligan

"The concern shared by the U.S. Chamber, the Missouri Chamber and the Cape Chamber is the planned pay-for in the legislation would be a significant tax on corporations, without a fair amount of time spent studying the impacts on local and regional investments," Gilligan said.

The legislation, which was approved in the Senate by a tally of 51-50 with no Republican support, got over the finish line thanks to a tie-breaking vote cast by Vice President Kamala Harris, who is president of the Senate.

The measure, the final product of negotiations between Democratic senators Chuck Schumer of New York and Joe Manchin of West Virginia, would authorize $370 billion in spending on energy and climate change; $300 billion in an attempt to curb inflation via deficit reduction; three years of Affordable Care Act ("Obamacare") subsidies; and prescription drug reform to lower prices.

The Act passed the House on Friday and at presstime was awaiting President Joe Biden's signature.

The bill, proponents say, represents America's largest-ever investment into addressing climate change.

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