Another Big Spending Trojan Horse Bill

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   Sharlee01posted 2 years ago

   
   Democrats rely on misleading messaging to sell Manchin-Schumer bill
   Manchin-Schumer bill will bring tax hikes to most Americans, study says, despite Biden's past promises
   
   "While the bill does not raise the federal tax rate, Republicans are sounding the alarm after the nonpartisan Congressional Joint Committee on Taxation (JCT) released data over the weekend
   
   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, the report said.
   
   By 2031, when the new energy credits and subsidies are set to provide an even greater benefit to wealthier Americans, those earning below $400,000 are projected to pay as much as two-thirds of the additional tax revenue collected that year, Republicans on the Senate Finance Committee said in a press release Saturday, citing the JCT report."
   https://www.finance.senate.gov/imo/medi … on_act.pdf
   https://www.foxbusiness.com/politics/mo … t-promises
   
   ""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," Senate Finance Committee Ranking Member Mike Crapo, R-Idaho, who requested the analysis, said in the release. "
   
   "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. "Non-partisan 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. It’s no wonder this bill, which was drafted behind closed doors, is being rushed through the Senate at record pace."
   
   Sen. Bill Cassidy, R-La., who also sits on the Senate Finance Committee, slammed the bill in a statement to Fox News Digital.
   
   "The only way the Inflation Reduction Act will decrease inflation is by raising taxes on middle-income and lower-income families so that they don’t have money to spend," he said. "In health care, we call that killing the patient to heal the disease. It is not how to treat American taxpayers."

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      Nathanvilleposted 2 years agoin reply to this

      Wow, is that right; where you say Americans who “earn less than $10,000 per year would pay 3.1% more taxes” indicating that Americans earning less than $10,000 already pay taxes?
      
      In the UK you don’t start paying any taxes on your earnings if you earn less than $15,350 per year.

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         wildernessposted 2 years agoin reply to this

         I caught that, too.  It might be true if one considers ALL taxes rather than just income taxes.  Sales, FICA, property, "fees" such as vehicle registration, etc.  A single person earning $10,000 will pay zero federal income taxes now - an increase of 3% still leaves zero.

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            Nathanvilleposted 2 years agoin reply to this

            Thanks for the clarification.

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            Sharlee01posted 2 years agoin reply to this

            Congressional Joint Committee on Taxation (JCT) Review, and analysis of Bill. This link offers their findings.
            https://www.finance.senate.gov/imo/medi … on_act.pdf
            
            (1) This table is a distributional analysis of the proposals in revenue table 22-2027R4, except the following:
            Subtitle B; Subtitle C; and Subtitle D: Part 3 items 1 and 2, and Part 4 item 1.
            For an explanation of the distribution methodology used in this table, see JCX-15-12 and JCX-14-13.
            (2) The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exempt interest,
            [2] employer contributions for health plans and life insurance, [3] employer share of FICA tax, [4] workers' compensation,
            [5] nontaxable Social Security benefits, [6] insurance value of Medicare benefits, [7] alternative minimum tax preference items,
            [8] individual share of business taxes, and [9] excluded income of U.S. citizens living abroad. Categories are measured at 2021 levels.
            (3) Federal taxes are equal to individual income tax (including the outlay portion of refundable credits), employment tax (attributed to employees),
            excise taxes (attributed to consumers), and corporate income taxes. The estimates of Federal taxes are preliminary and subject to change.
            Individuals who are dependents of other taxpayers and taxpayers with negative income are excluded from the analysis.
            Does not include indirect effects.
            (4) The average tax rate is equal to Federal taxes described in footnote (3) divided by income described in footnote (2).
            (5) For returns in the $10,000 to $20,000 income category, Federal taxes would increase from -$1.336 billion to -$1.079 billion.
            (6) Less than 0.05%

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      GA Andersonposted 2 years agoin reply to this

      I haven't looked into this, but how is the tax hitting those $10, 000 folks?
      
      I think doing this bill now is nuts and I don't trust the claims by either side, especially not the Democrats' claims of reducing inflation, but since I don't think those making $10K pay any taxes now, this tax claim seems wrong What am I missing?
      
      GA

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