Monday 1 August 2022 04:15 PM Democrats' Inflation Reduction Act would RAISE taxes on Americans making less ... trends now
Senate Democrats' Inflation Reduction Act of 2022 would raise federal taxes for Americans in every income bracket, according to a nonpartisan study shared by Republicans on the Senate Finance Committee.
If the projection proves true, it would cast doubt on President Joe Biden's promise to not raise taxes on Americans making less than $400,000 per year.
The study by the Joint Committee on Taxation found that taxpayers bringing in less than $200,000 per year would see their taxes raised by $16.7 billion over a decade.
But the study speculates about the effect of the package's 15 percent minimum corporate tax rate, which it suggests could be passed off onto workers and shareholders.
It also factors in possible effects on the stock market that would affect company shareholders and people who rely on pensions and other similar funds.
The JCT states that the minimum corporate tax would bring in more than $300 billion over a decade.
While the bill is not directly hiking the tax rate for Americans making less than $400,000, the indirect increases that the JCT anticipates has been enough for Republicans to heap criticism on the White House.
The bill, named the Inflation Reduction Act of 2022, was negotiated behind closed doors by West Virginia Democrat Senator Joe Manchin (left) and Senate Majority Leader Chuck Schumer (right)
It could be President Joe Biden's last chance to score a victory without Republican support before the November midterm elections
GOP lawmakers also cited a budget model by the University of Pennsylvania's Wharton business school that the legislation 'would very slightly increase inflation until 2024 and decrease inflation thereafter.'
The package is Democrats' latest attempt to usher a significant budget bill through Congress without Republican support before the November midterm elections.
It provides more funding for the IRS, green energy subsidies, expansion of Affordable Care Act (ACA) subsidies, and lowers prescription drug costs among other measures.
The Penn Wharton Budget Model estimates that the $740 billion bill - which includes roughly $433 billion in new spending - would reduce the deficit by $248 billion.
