Most Americans will feel tax pain from Dem inflation bill despite Biden's past promises: analysis
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The vast majority of Americans will pay more in taxes as a result of Democrats' inflation bill despite President Biden's pledge not to raise taxes on those making under $400,000 per year.
The Inflation Reduction Act — unveiled Wednesday by Sen. Joe Manchin, D-W.Va., and endorsed by Biden — would increase tax revenue by $16.7 billion from Americans earning less than $200,000 a year, according to a nonpartisan analysis from the Joint Committee on Taxation (JCT) published Friday. Nearly every tax bracket would pay more in taxes with those making below $10,000 per year seeing the largest uptick, the analysis showed.
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"The more this bill is analyzed by impartial experts, the more we can see Democrats are trying to sell the American people a bill of goods," Senate Finance Committee ranking member Mike Crapo, R-Idaho, said in a statement Saturday. "Nonpartisan analysts are confirming this bill raises taxes on the middle class and produces no meaningful deficit reduction when gimmicks are removed and the full cost is accounted for."
However, Biden has repeatedly pledged that Americans earning less than $400,000 per year would not experience any tax increase during his presidency. The president originally made the pledge during his 2020 campaign.
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"This bill will not raise taxes on anyone making less than $400,000 a year," Biden remarked Thursday during a speech about the legislation. "And I promise — a promise I made during the campaign and one which that I ha- — that I’ve have kept."
In 2023, the year in which the legislation would increase tax revenue most, individuals making less than $10,000 per year would pay 3.1% more in taxes and those making between $20,000-30,000 per year would see a 1.1% tax increase, the JCT analysis showed. Tax revenue collected from those making $100,000 per year or less would increase by $5.8 billion in 2023 under the Inflation Reduction Act.
In addition, the share of tax revenue collected from all Americans making more than $200,000 per year would remain at the current percentage, according to the JCT. Taxpayers with an annual income of $200,000 or greater pay more than 57% of all federal income taxes.
Sen. Joe Manchin on Sunday admitted that he made a “mistake” saying the American Rescue Plan wouldn’t cause inflation and added that he would make sure that he doesn’t “make that mistake again.” (Andrew Harnik / AP Newsroom) The Inflation Reduction Act, though, boosts Internal Revenue Service enforcement, a provision that is expected to increase federal tax revenue by $124 billion. The bill also creates a minimum corporate tax rate of 15% which is expected to boost federal tax revenue by $313 billion. TOP TRUMP WHITE HOUSE ECONOMIST SLAMS BIDEN ADMINISTRATION'S 'RECESSION' SPIN "The proposed corporate alternative minimum tax is the largest revenue raising provision in the analysis," Thomas Barthold, the JCT's chief of staff, told FOX Business in an email. It was not immediately clear how much each provision of the bill would lead to higher taxes. The JCT listed more than 20 of the legislation's provisions that it factored into its analysis. President Joe Biden removes his mask as he delivers remarks on the Inflation Reduction Act of 2022 at the White House on July 28, 2022. (Anna Moneymaker / Getty Images) "Democrats are clearly trying to pivot this as only a tax like on the wealthy," Mike Palicz, the federal affairs manager at Americans for Tax Reform, told FOX Business in an interview. "But you look at any of these taxes — take something like the [corporate minimum tax]. That's going to lower workers' wages, it's going to cost jobs." "There's a $25 billion crude oil tax in this bill," he added. "That's something that's going to hit everyone. That's a regressive tax increase on poor people that raises their energy costs, raises the price of gasoline." CLICK HERE TO READ MORE ON FOX BUSINESS Transportation Secretary Pete Buttigieg previously said that a gasoline tax increase would violate Biden's pledge not to raise taxes on middle class Americans. "This is Biden breaking his promise to the American people," Palicz said. The White House didn't immediately respond to a request for comment. Source: Read Full Article
