Senator. Joe Manchin (D-WV) appeared on Sunday's shows in an attempt to convince the public that his agreement to Senate Majority Leader Chuck Schumer (D-NY) was an excellent thing. As we've already explained, slapping the term “Inflation Reduction Act” on it doesn't mean it will reduce inflation. In fact, as we've seen in the Penn-Wharton Budget Model, it isn't doing anything. It actually increases inflation in the initial couple of years.
There's an additional issue with this, and that's the issue Fox's Bret Baier was attempting to convey in his interview with Manchin during his talk show: the fact that it will increase taxes. Manchin tried to say it wasn't.
Manchin discusses the minimum 15 percent corporate tax rate within the legislation. This is likely to affect everyone since businesses will then transfer any additional tax they are required to pay to consumers. There will also be adjustments to the carried interest provisions which are likely to raise the amount of taxes that people pay. One of the most troubling aspects is the presence of more than 80,000 newly appointed IRS agents who won't just be pursuing billionaires. Senator Ted Cruz (R-TX) and Dana Loesch explained what an issue this will be.
In addition make sure you are prepared for your tax bill to increase.
U.S. Senate Finance Committee Chairman Mike Crapo (R-Idaho) explained what the Joint Committee on Taxation found.
Based on the JCT:
In 2023, tax rates will rise by $16.7 billion for American taxpayers with incomes less than $200,000, a $17 billion tax that will be targeted towards middle and lower-income earners next year, in the midst of inflation.
The $17 billion tax hit is proof that the Biden commitment to not raise taxes on those who earn less than $400,000 has been broken by the new tax-and-spend law.
The plan would also raise $14.1 billion in tax revenue from those who earn between $200,000 to $500,000.
According to JCT statistics, the majority of tax returns filed by people within the $200,000-$500,000 class are made by taxpayers who earn less than $200,000 but above $400,000 with at minimum three-quarters of the income earned in the $200,000 to $500,000 bracket as well as those earning below $400,000, which means it is likely that at the very least 50% of the new tax revenues that are raised in the coming year will come from those who earn less than $400,000.
Over the course of ten years the tax rate for almost every income bracket would rise.
In 2031, when renewable energy subsidies and credits are able to provide the same benefits for those with higher incomes than those who earn less than $400,000 will be expected to shoulder up to two-thirds of the additional tax revenue that is collected.
This is of course true. This disproves Joe Biden's claim that taxpayers earning less than $400,000 will not receive an increase in tax.
If you examine the chart, anyone earning more than $30,000 sees their rates increase. In fact, the largest percent increase is seen for those earning less than $10,000.
They'll make this happen in the middle of a recession. It's insane. We've already seen an “increased tax” of Bidenflation and they're now planning to raise it even more.
I'm not sure what Manchin was thinking, however, Manchin is clearly lost in his thoughts. It is our hope that Senator Kyrsten Sinema (D-AZ) is more rational and sticks to her stance since she's been very opposed to raising taxes.