Joe Biden has repeatedly claimed he does not aim to increase taxes on people making less than $400,000 per year.
However, nearly all Americans will feel the burden of more taxes once the so-called Inflation Reduction Act is passed by the Senate.
Even poor people who are making less than $10,000 per year will face the brunt of Biden’s economic policy.
Democrats Ready to Increase Taxes on Every American
Recently, Senator Joe Manchin agreed to endorse the trimmed-down version of the social spending bill, which is named the Inflation Reduction Act of 2022.
Despite its name, the bill will not reduce inflation in any sector of the economy. Instead, it is aiming to increase the taxes on average Americans, which will put additional strain on their pockets.
The Congressional Joint Committee on Taxation (JCT) revealed the newly introduced legislation would impose $16.7 billion of new taxes on people making less than $200,000 a year.
The Schumer-Manchin bill (the “Inflation Reduction Act”) would increase taxes by over $16.7 billion in 2023 for households with income under $200,000.
(Source: Joint Committee on Taxation.) pic.twitter.com/7U9frOMpKZ
— Michael R. Strain (@MichaelRStrain) August 1, 2022
Even Americans who are earning less than $10,000 a year will not be spared in the new act, the JCT noted.
According to the committee, the legislation will have real consequences in 2023, when people earning less than $10,000 a year will pay 3.1% more in taxes, compared to 2022.
Similarly, people who are making $20,000 to $30,000 a year will be charged 1.1% more, compared to their current taxes.
Almost $5.8 billion will be collected from people who are earning less than $100,000 per year, the JCT analysis revealed.
Only the Democrats would call a bill that doubles the size of the IRS, raises taxes, and spends billions on a green energy slush fund the "Inflation Reduction Act."
— Tom Cotton (@TomCottonAR) August 1, 2022
Poor Tax Policies to Push the Economy into Doldrums
In addition to that, the Inflation Reduction Act will empower the IRS further, which is likely to increase tax revenue by $124 billion. Furthermore, the minimum corporate tax will also be set at 15%, which is supposed to increase tax revenue by $313 billion.
While this corporate tax will certainly burden rich people, economic experts are suggesting it will urge corporations to cut down the wages of employees and increase prices; so it will eventually disturb the finances of the average American.
According to Mike Palicz, who is an official of the advocacy group, Americans for Tax Reform, minimum corporate taxes will increase unemployment and decrease wages in every sector of the economy.
GOP lawmakers are also ringing alarm bells about the negative consequences of the new bill on the economy.
Republican Senator Mike Crapo, who is also the ranking member of the Senate Finance Committee, asserted even impartial experts believe Democrats are selling a “bill of goods” to Americans.
Crapo also added the legislation would increase the tax bill of the middle class, while producing minimal deficit reduction.
This marks the latest hypocrisy of President Biden, who repeatedly vowed during his presidential campaign to only increase taxes on Americans earning more than $400,000.
Even when Senator Joe Manchin showed his approval for the bill, Biden reiterated last Thursday that he “promise(s)” the bill will only tax people making more than $400,000 per year.