Joe Biden has repeatedly claimed that under his plans, no one making under $400,000 would pay any increase in taxes.
That may not be entirely accurate.
Stop me if you’ve heard this one before.
Now consider this:
Here’s a bigger view via the Senate Finance Committee:
Senate Republicans point to the nonpartisan Joint Committee on Taxation to elaborate on this:
JCT: Democrats’ Proposals Increase Taxes on Millions of AmericansThe nonpartisan Joint Committee on Taxation (JCT) estimates the Democrats’ latest reckless tax-and-spend proposal will increase taxes on millions of Americans across every income bracket, with more than half of the tax increases on Americans making less than $400,000 per year.“While Republicans’ pro-growth tax reform in 2017 reduced tax rates for all Americans in a way that increased the progressivity of the tax code and produced historic gains in job and wage growth, the Democrats’ approach to tax reform means increasing taxes on low- and middle-income Americans to fund their partisan Green New Deal,” said U.S. Senate Finance Committee Ranking Member Mike Crapo (R-Idaho), who requested the analysis. “Americans are already experiencing the consequences of Democrats’ reckless economic policies. The mislabeled ‘Inflation Reduction Act’ will do nothing to bring the economy out of stagnation and recession, but it will raise billions of dollars in taxes on Americans making less than $400,000.”According to JCT:
- In 2023, taxes will increase by $16.7 billion on American taxpayers earning less than $200,000—a nearly $17 billion tax targeted solidly at low- and middle-income earners next year, amidst stagflation.
- The $17 billion hit alone is confirmation that the Biden pledge to not raise taxes on anyone earning less than $400,000 is shattered by the latest tax-and-spend bill.
- The proposal would raise another $14.1 billion from taxpayers earning between $200,000 and $500,000.
- According to JCT data, 98 percent of all tax returns filed by those in the $200,000 to $500,000 category are filed by those earning between $200,000 and $400,000, with at least three-fourths of the income in the $200,000 to $500,000 category also coming from those below $400,000, meaning it is likely that at least half of all new tax revenue raised next year would come from those earning under $400,000.
- Throughout the ten-year window, the average tax rate for nearly every single income category would increase.
- By 2031, when the new green energy credits and subsidies provide an even greater benefit to those at higher incomes, those earning below $400,000 are projected to bear as much as two-thirds of the burden of the additional tax revenue collected that year.
“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,” Crapo continued.
This doesn’t even take into account the inflation tax which millions of Americans are already paying every day and which could rise if Biden’s plan goes forward.
David Harsanyi recently wrote at the New York Post:
Democrats’ high-spending ‘Inflation Reduction Act’ will do just the oppositeThe first thing to remember about the reconciliation bill Sens. Joe Manchin and Chuck Schumer agreed to Wednesday is that despite its utterly preposterous name, it has absolutely zero to do with inflation. The Inflation Reduction Act is crammed with the very same spending, corporate welfare, price-fixing and tax hikes that were part of Build Back Better — long-desired progressive wish-list agenda items. Pumping hundreds of billions into the economy will do nothing to alleviate inflation. The opposite.Let’s also remember the Democrats’ deflection on inflation last year — claiming it was “transitory” and “no serious economist” is “suggesting there’s unchecked inflation on the way” and so on — was all part of a concerted political effort to ignore the problem long enough to cram through a $5.5 trillion iteration of their agenda. And when inflation suddenly became non-transitory and politically problematic, the Biden administration argued that more spending would relieve inflation. It doesn’t care about the economy, as long as dependency is being expanded.The bill is far more likely to spike consumer prices than not. You can hate corporations with the heat of a thousand suns and grouse about the lack of fairness in the world, but it won’t change the fact that businesses don’t pay taxes, they collect them.
When the Biden administration tells us that their plan will save money for Americans, our response should be one that Biden knows well.
Come on, man.
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