It Won’t Bring Down Prices, But It Will Raise Taxes During A Recession, Give $80 Billion To The IRS, And Extend Tax Breaks For The Wealthy
BIDEN’S RESPONSE TO THE RECESSION HE CREATED: RAISE TAXES
- Last week, Biden and congressional Democrats released a new $400 billion plus tax-and-spend proposal designed to revive their radical Build Back Broke agenda and raise taxes on American businesses and families.
- Biden and Democrats’ bill isn’t an “Inflation Reduction Act”; it’s a scam.
DEMOCRATS’ BILL WILL NOT REDUCE INFLATION, AND IT INCLUDES BUDGET GIMMICKS
- The Bidenflation Scam bill not only hurts hardworking Americans, but also fails to achieve its main goal: reduce inflation and lower the deficit.
- The Penn Wharton Budget Model found that Biden’s plan would have a “statistically indistinguishable from zero” impact on inflation and would actually slightly increase inflation until 2024.
- Moody’s Analytics – a “Wall Street” firm Biden loves to cite – estimates that the bill would have virtually no impact on inflation for years, and only reduce inflation by .33 percent over a decade.
- Tax Foundation Vice President of Federal Tax and Economic Policy William McBride says the bill would have “close to zero impact on inflation.”
- The National Taxpayers Union has estimated that under more realistic assumptions, Democrats’ bill would actually add $285 billion to the deficit over the next decade.
- Center for a Free Economy President Ryan Ellis says “a realistic score” on the bill would show it is “likely to increase the budget deficit and the national debt, making inflation worse.”
- Former Chief Economist of the House Ways and Means Committee Don Schneider calls one of Democrats’ key savings provisions in the bill a “fake offset.”
DEMOCRATS AGREE: TAX HIKES DURING A RECESSION ARE WRONG
- Democrats themselves have admitted increasing taxes during a recession is bad policy.
- In 2010, then-Gov. Joe Manchin (D-WV): “I don’t think during a time of recession you mess with any of the taxes or increase any taxes.”
- In 2008, Sen. Chuck Schumer (D-NY): “If we’re in a recession and we’re in a difficult economic time, I don’t think Sen. Obama or anyone else is going to raise any taxes. You don’t want to take money out of the economy when the economy is shrinking.”
- In 2009, President Barack Obama: “You don’t raise taxes in a recession … The last thing you want to do is to raise taxes in the middle of a recession.”
BIDEN’S PLAN: RAISE YOUR TAXES, GIVE $80 BILLION TO THE IRS
- The Biden tax hikes break his promise to not raise taxes on Americans making less than $400,000.
- Americans earning less than $200,000 per year will see taxes rise by $16.7 billion in 2023, and taxpayers earning between $200,000 and $500,000 will pay $14.1 billion more.
- By 2031, Congress’ Joint Committee on Taxation projects Americans making less than $400,000 will bear as much as two-thirds of the tax burden.
- Biden wants to give $80 billion to the IRS for additional audits and an army of 87,000 new IRS agents.
- The CBO found that increased funding for IRS enforcement leads to “higher audit rates” for all taxpayers, including those who ultimately do “not owe any additional taxes.”
- The IRS audited Americans earning $25,000 a year at five times the rate of other groups last year, meaning this army of new IRS agents would disproportionately target poorer Americans.
- Johns Hopkins economist Steve Hanke has said many of the “hidden costs” of giving the IRS more money fall on taxpayers.
- Under the Obama-Biden administration, the IRS admitted to targeting conservative groups.
- Obama IRS Commissioner John Koskinen said, “I’m not sure you could efficiently use that much money” and that $80 billion is more than three times what he thought the IRS should get.
- The Bidenflation Scam bill would create an IRS on steroids, spending 14 times as much money on enforcement as it does on taxpayer services.
THE BILL WOULD RAISE TAXES ON U.S. BUSINESSES, SLAMMING MANUFACTURERS HARD
- Biden and congressional Democrats are proposing increasing taxes on American businesses at a time when inflation is at a new 40-year high.
- Biden is calling for a 15 percent “book” tax on many businesses, which experts say will result in “higher prices, fewer jobs, and lower wages.”
- Biden’s business tax hike would shrink the U.S. economy by over $68 billion and eliminate more than 218,000 jobs according to the National Association of Manufacturers.
- A recent study by the Joint Committee on Taxation found that nearly half of Biden’s tax burden would fall on manufactures, having a “swift and devastating” impact on the industry.
- Biden’s business minimum tax has been previously branded the “most economically damaging provision” in his agenda.
- In late 2021, Biden’s own Treasury officials voiced concerns about this tax hike, which they said would make the “tax code less efficient.”
- Tax experts have debunked Sen. Joe Manchin’s claim that this tax hike is actually just “closing a loophole.”
- Manhattan Institute Senior Fellow Brian Riedl: “Manchin is flat-out lying and I would be surprised to find a single tax expert who claims otherwise. Deducting business investments is not a random loophole, it’s one of the longstanding centerpieces of business tax policy.”
HIGHER ENERGY PRICES FOR FAMILIES, TAX BREAKS FOR THE WEALTHY
- The Bidenflation Scam bill is chock-full of tax breaks for the affluent and $385 billion in green energy subsidies, the type of policies that are already making “the electric grid less reliable and energy more expensive.”
- With the Consumer Price Index for energy rising 41.6 percent since last year, Biden’s tax-and-spend policy will only make Americans “poorer” and give them “fewer energy choices.”
- Biden wants to impose a new natural gas tax, which based on a previous version of the tax could jeopardize 100,000 jobs and lead to a 17 percent increase in monthly natural gas bills, costing the average American family roughly $100 per year.
- The bill includes Green New Deal-style policies including $25 million to combat cow burps and farts.
- Biden’s Inflation Act also includes a $7,500 handout to wealthy Americans to purchase electric vehicles, which have an average cost of nearly $67,000 according to Kelly Blue Book.
- This EV tax credit benefits the wealthyat the expense of the middle class and poor, as the policy uses less affluent Americans’ money to entice more affluent Americans to buy EVs.
- Most individuals who claim the electric vehicle tax credit earn far more income than the national average.
- A study from the Fuels Institute found that “the top demographic” for electric vehicle owners was “middle-aged white men earning more than $100,000 annually with a college degree or higher.”
BIDEN’S PLAN WOULD EXTEND OBAMACARE SUBSIDIES FOR THE WEALTHY
- The Bidenflation Scam bill would extend Obamacare subsidies for the wealthy – a policy which would “raise inflation and increase the deficit” and mainly benefit the rich.
- Biden’s Obamacare subsidies have also “lined the pockets of insurance companies at [the] taxpayers’ expense.”