Evers Falsely Credits Baldwin and Pocan for the Direct File Program

Gov. Evers issued a press release on Wednesday giving Sen. Tammy Baldwin and Rep. Mark Pocan credit for the federal income tax Direct File Program, which was part of the Inflation Reduction Act of 2022, despite their lack of direct involvement in its creation.

The Direct File Program allows taxpayers to file their returns directly to the IRS online. The program will be available to Wisconsin taxpayers starting in 2025.

As is usually the case with these press releases, it’s stretching the truth by quite a lot. Neither Pocan nor Baldwin sponsored the bill, cosponsored the bill, nor sponsored any amendments to the bill. They did not even sit on the committees that approved the bill. (Baldwin actually voted against a motion that would have sent the bill to a committee she sits on).  Baldwin cosponsored two amendments, but they were about electric vehicles and not income tax filings.

The only direct involvement Pocan and Baldwin appear to have had in the Direct File Program was voting for the Inflation Reduction Act, was a completely partisan bill. Every Democrat voted for it, and every Republican either voted against it or not at all. Why Evers didn’t also give credit to Rep. Gwen Moore (D-Milwaukee) for the program is a mystery. She, too, voted for the law, and like Pocan and Baldwin, is facing a challenger in the upcoming election.

In addition to the Direct File Program, the Inflation Reduction Act also increased the IRS’ funding by $80 billion. Sen. Mike Crapo (R-ID) wanted to block the IRS from using that new funding to audit anyone who makes less than $400,000 a year. He introduced an amendment in the Senate, but it was defeated on a partisan vote. Baldwin voted against that amendment.

Neither Pocan nor Baldwin (nor Moore for the matter) cited the Direct File Program in their press releases following the passage of the Inflation Reduction Act. Pocan, however, did seem proud that the law would help pay for itself by “strengthening IRS enforcement.”

The Inflation Reduction Act became law on Aug. 16, 2022. At the time, the MacIver News Service pointed out that with its $740 billion price tag, the law was more likely to increase rather than reduce inflation.

As data from the St. Louis FED's website shows, the Inflation Reduction Act did nothing to mitigate inflation or its effects. On the contrary, the IRA played a significant role in increasing the deficit from $946 billion in August to more than $1.377 trillion by September. This increase in Federal debt only worsens the fiscal situation of the United States by encouraging the FED to cause more inflation, not less (to learn more, see: Econ 101: Understanding Inflation).

The graph below shows that increases in the Consumer Price Index had abated in June, July and August of 2022 but then immediately resumed its upward trajectory in September.

This means that price increases had stopped but were then forced to continue to increase because of the stimulating deficit spending of the Inflation Reduction Act.