Yes, Your Taxes Will Go Up If The Inflation Reduction Act Passes

The Biden administration is claiming that the Inflation Reduction Act will reduce inflation, help bring down the deficit, and not raise taxes on any American who makes less than $400,000 a year. That’s a really great idea. Unfortunately it’s not true.

The Daily Caller posted an article on Monday that explains what the bill will actually do. The article cites the Congressional Joint Committee on Taxation (JCT) as the source of its information:

The JCT found that taxes would go up by a total of $16.7 billion for Americans making less than $200,000, and by $14.1 billion for Americans making between $200,000 and $500,000.

Tax rates will begin to increase for a number of income groups as soon as the 2023 calendar year, according to the JCT. Those making less than $10,000 would see their average tax rate increase from 7.3% in 2022 to 7.6% in 2023, while those making between $30,000-$40,000 would go from 7.8% to 7.9%, and those making between $100,000-$200,000 would go from 19.1% to 19.4%.

That may not be a significant amount, but it is a tax rate on every American who pays taxes.

The article notes:

Senate Finance Committee Chair Ron Wyden’s spokeswoman Ashley Schapitl pushed back against the estimates, arguing that the JCT analysis is incomplete since “it doesn’t include the benefits to middle-class families of making health insurance premiums and prescription drugs more affordable,” Politico reported.

White House press secretary Karine Jean-Pierre made a similar argument Monday when pressed on the incongruities between the JCT estimates and Biden’s claims.

“The JCT’s report that we’re seeing is incomplete because it omits the actual benefits that Americans would receive when it comes to prescription drugs, when it comes to lowering energy costs like utility bills,” Jean-Pierre said.

The promise made was that the bill would not raise taxes. It raises taxes. The other savings may or may not happen. Green energy has been shown to increase utility bills–not decrease them, and a lot of money in this bill goes toward increasing America’s dependence on green energy.

The article concludes:

But it remains unclear how President Biden’s initial claim that taxes are not going to go up on those making under $400,000 dollars squares with JCT’s data, even if there are certain “indirect benefits” like “drug-price savings,” “mitigating the climate crisis” and “deficit reduction.” Tax rates on at least some individuals making under $400,000 will still increase, according to the JCT, a bipartisan committee, contrary to Biden’s claim.

Tax And Spend From The Biden Administration

Breitbart posted an article today about President Biden’s plan to raise taxes on Americans to pay for an infrastructure plan.

The article reports:

President Joe Biden plans to propose a tax on American businesses at a higher corporate tax rate than Communist China charges American businesses.

Biden will travel to Pittsburgh Wednesday to present a 2.25 trillion dollar package that would, if passed into law, increase the corporate tax rate from 21 percent to 28 percent, outdoing Communist China’s corporate tax rate of 25 percent, just after former President Trump lowered the tax from 35 percent to the current 21 percent.

The lesson that the President should have learned from the Trump administration’s corporate tax cuts is that when you cut the corporate tax rate, businesses come back to America. Increasing the corporate tax rate will drive American businesses overseas and will result in more unemployment for Americans.

The article concludes:

The top Republican on the House Ways and Means Committee, Rep. Kevin Brady (R-TX), also condemned the plan due to the United States remaining in an economic crisis. “No president has ever raised business taxes to recover from an economic crisis. This couldn’t come at a worse time,” he said.

Ann Wagner (R-MO) agreed. “Why, as this country begins to reopen and recover economically, would the Biden administration be proposing tax policy which would, in the end, hurt the American family and millions of struggling small businesses?”

Senate Minority Leader Mitch McConnell (R-KY) said on March 16 that Republicans would not support tax increases to pay for infrastructure. “I don’t think there’s going to be any enthusiasm on our side for a tax increase,” he said.
Breitbart News reported the bill also “includes $300 billion for housing, $400 billion for elderly and disabled care, and $300 billion to revive manufacturing in the United States.” Additional expenditures incorporate high-speed broadband internet upgrades, electric grid modifications, and water systems maintenance. The proposal will also involve “nearly $400 billion in ‘clean-energy credits’ to promote ‘green’ energy such as wind and solar.”

If you were really interested in reviving manufacturing in America, you wouldn’t raise the corporate tax and end energy independence. This bill is not about what it says it is about.