Inflation Reduction Act would increase taxes on nearly all Americans

By Bethany Blankley | The Center Square

The Inflation Reduction Act of 2022 would increase taxes on nearly every American despite claims made by President Biden.

“When we pass the Inflation Reduction Act, not a single American in the middle class will pay higher taxes,” Biden tweeted.

According to analysis by the Congressional Joint Committee on Taxation, nearly all Americans would see increased taxes by 2023. The average tax rates would increase in nearly all income categories, according to its analysis, including lower income individuals such as those earning less than $10,000.

Federal taxes will increase by $1.9 billion on those earning between $50,000 and $75,000 and by $10.8 billion on those earning between $100,000 and $200,000 in 2023.

Overall average tax rates would increase from 20.3% to 20.6% in 2023 alone, according to the analysis.

 

According to the bill summary, “There are no new taxes on families making $400,000 or less and no new taxes on small businesses – we are closing tax loopholes and enforcing the tax code.”

U.S. Sen. Joe Manchin, D-W.Va., who’s spearheaded the bill, says it will pay down the national debt, and lower energy and health-care costs.

“Over the last year, leaders in Washington have ignored repeated warnings about the severe threat of inflation and the consequences of unprecedented domestic spending,” Manchin said. “Despite these concerns and my calls to give the country time to fully realize the impacts of such historic levels of spending and our inflation crisis, many Democrats have continued to push for trillions more in spending to meet a political deadline.

“Contrary to foolish talk otherwise, America cannot spend its way out of debt or out of inflation.”

The way to do this, he argues, is through “tax fairness,” including imposing a domestic corporate minimum tax of 15% on billion-dollar companies or larger. The bill also would spend more money on “technologies needed for all fuel types – from hydrogen, nuclear, renewables, fossil fuels and energy storage – to be produced and used in the cleanest way possible.” The technologies will help reduce domestic methane and carbon emissions and “decarbonize around the world as we displace dirtier products.”

The $400 billion bill won’t raise any taxes, he argues.

But The Wall Street Journal editorial board argues that’s exactly what it will do. The bill is “a tax increase on nearly every American,” they write. “Raise the corporate tax rate, and you’re cutting wages and salaries for workers.”

Republicans on the House Ways and Means Committee argue the same. They warn it’s full of “hundreds of billions of dollars in wasteful inflationary spending [and] won’t reduce the deficit.”

“Rather than reduce inflation, it puts inflation on steroids,” they argue. It includes a “socialist drug price setting scheme [that] will likely cause drug prices to increase for patients for the next few years, all while killing future cures from ever coming to market.”

It also includes “expensive wasteful Green welfare,” they add, including Green New Deal tax credits of $257 billion and solar company loan guarantees of $250 billion that “will worsen our inflation problem, on top of government checks to subsidize luxury electric vehicles.”

Rather than tax the richest companies, it instead includes “handouts to the wealthy,” they argue, including “tens of billions of dollars in Obamacare subsidies [that] will flow to the well-off. It also increases taxes and fees on oil production and methane, which Republicans argue will result in higher gas prices, larger heating bills and higher consumer prices.

“When made permanent, Obamacare bailouts will cost $248 billion, four times higher than what Democrats’ bill admits. Meanwhile, Obamacare has already resulted in higher health care prices and 17 percent health insurance inflation,” they add.

The bill also includes a provision to hire 87,000 new IRS agents to begin auditing more than a million Americans, including lower income taxpayers.

Image courtesy of Wikimedia Commons/MDGovpics
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9 thoughts on “Inflation Reduction Act would increase taxes on nearly all Americans

  1. I’m not an economist so please correct me if I make mistakes. I welcome it.

    My understanding is that the deficit is the difference between what the government takes in and what it spends on an annual basis. They advertise this bill will reduce the debt, not eliminate it. We will still be running a deficit and adding to the national debt (the cumulative amount of debt from annual deficits).

    And the deficit number they will use as the “before” number which this bill is going to reduce, is an inflated debt number from the massive spending the last 2 years from all the COVID relief spending. So if they did nothing the annual deficit would be dropping anyway. But they will add spending in this bill and as long as the deficit drops (as it naturally will) by less than their spending, they will give the credit to their bill for reducing the deficit.

    More smoke and mirrors.

  2. So, the US government is $33 Trillion in dept, we hand billions to the Ukraine that’s losing by the way and this $746 Billion crapola. No wonder our money isn’t worth anything! Ni one has any idea what’s in this bill because none of them read it but you, me and everyone else who will get a big fat nothing burger will have to pay for this. Keep voting dem/prog and you will own nothing and like it.

    • A CBS REPORT CONCLUDED ONLY 30% OF ALL ARMS ARE DELIVERED TO THE FRONT LINES.
      THE REST DISAPPEARS ON THE BLACK MARKET

      DO NOT FORGET UKRAINE IS ONE OF THE MOST CORRUPT STATES IN THE WORLD, JUST GOOGLE

      THIS IS A GREAT OPPORTUNITY FOR THE UKRAINE MAFIA TO MAKE BILLIONS OF DOLLARS

      • CBS caves into Ukrainian pressure on weapons revelations
        https://www.rt.com/russia/560473-cbs-deletes-ukraine-documentary/

        The about turn comes after heavy pressure from Kiev press and think-tank supporters on social media
        CBS caves into Ukrainian pressure on weapons revelations

        FILE PHOTO: US Airmen and civilians load ammunition and weapons bound for Ukraine during a foreign military sales mission at Dover Air Force Base, Delaware,

        CBS News has pulled a documentary and amended a story featuring claims that 70% of foreign weapons never make it to the front lines in Ukraine. The changes were made amid an outcry from the Ukrainian government and its supporters.

        The documentary originally featured an interview with Jonas Ohman, the founder of a Lithuania-based organization supplying the Ukrainian military. Ohman told CBS that getting foreign weapons to Ukrainian troops involves navigating a network of “power lords, oligarchs [and] political players,” and that of all the aid arriving at the border in Poland, “kind of like 30% of it reaches its final destination.”

        Amnesty International’s Donatella Rovera also appeared in the film, saying that “there is really no information as to where [the weapons are] going at all.”

        The documentary was released online on Thursday, and was set to air on CBS on Sunday evening.

  3. When DemocRATs propose an ” Inflation Reduction Act ” it really means the opposite,
    you will be getting nailed by more taxes and debt, yes everybody will feel the pain and
    the middle class will be carrying the load, and remind your kids and grandkids that they
    will also be on the hook down the road for trillions, Oh well keep voting these inept fools
    in…………………………..Wake up, people !!

  4. Is “no new taxes” the same asse increasing EXISTING taxes? I think it’s a word game! It’s impossible for this level of spending to not increase taxes.

  5. I cannot wait to see what all these Biden voters that wanted their college debt wiped away and more free rides of all sorts- THEN get slapped with higher taxes as a reward for their votes.

    Taxation Is Theft.
    Why learn this lesson the hard way?
    Do not vote in people that aim to rob you.. this is not that hard to figure out.
    Even dumbed down people should know they want to keep their own money, you have to vote to keep it !!

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