A look at the numbers behind the Inflation Reduction Act as President Joe Biden signs the measure into law.
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Don’t believe the Biden administration claims that no one earning less than $400,000 will take tax hits from that marching army to be added to the federal payroll.
The nonpartisan Congressional Joint Committee on Taxation determined that taxes would increase by up to $16.7 billion for Americans making less than $200,000 in 2023, and increase by $14.1 billion for those earning between $200,000 and $500,000.
For starters, consider where much of those premised $204 billion in new revenues will really need to come from based upon Congressional Budget Office estimates.
According to the CBO, returning to 2010 audit rates for all individuals making over $400,000 would generate only 28%, or $9.9 billion, out of the estimated $35.3 billion in new IRS enforcement revenues by 2031.
A 2021 report from the Government Accountability Office (GAO) states that as for audits producing the biggest bang for the bucks: “From fiscal years 2010 to 2021, the majority of the additional taxes IRS recommended from audits came from taxpayers with incomes below $200,000.”
The GAO notes that “audits of the lowest-income taxpayers, particularly those claiming the EITC [earned income tax credit], resulted in higher amounts of recommended additional tax per audit hour compared to all income groups except for the highest-income taxpayers.”
The Treasury Department’s report on the proposed new funding includes a footnote highlighting the already-high prevalence of IRS audits among low-income households: “Work by former IRS economist Kim Bloomquist points out that the five counties with the highest audit rates are predominantly African-American, rural counties in the South.”
Based on IRS data, individual filers reporting less than $50,000 of income have accounted for 62% of underreported taxes. Accordingly, expect small businesses and middle-class taxpayers to be subject to more IRS scrutiny, particularly since they are least able to afford legally contesting audit assessments.
If Democrats truly intended to focus the new wave of audits on those making $400,000 or more, why would they have vetoed a legislative amendment by Sen. Mike Crapo (R-Idaho) that would ensure doing so by permanently extending income tax cuts for small businesses and individuals that were passed in the 2017 Tax Cuts and Jobs Act (TCJA)?
This could have made all 330 million Americans billionaires. Instead we will end up paying for this because it will all go to corruption and waste. Great job joe! Wake up America
The Inflation Reduction Act Farcer
https://www.youtube.com/shorts/cB3Pf2Kxzf8
Theres no such thing as a "bill that pays for itself". When the govt creates a spending bill, it has to be paid for by the REAL wealth producers in the private sector, thru taxation or inflation of the money supply or a combination of both. The govt doesnt produce any wealth in and of its own, it has to EXTRACT that from the private economy. The inflation we have seen throughout history has always been due to govt spending beyond its limits, the creation of new dollars to cover congress' DEFICIT spending. ITs generational theft. The bandits that caused it will have no cost borne on them, like the Bidens and the Pelosi's of the world. It will inevitably fall on future generation's productive capacity to service the debt so selfishly accrued today.
Real inflation will be coming in prices for water, and, as global warming continues, paying for the aftermath of increasing and increasingly severe fires, floods, tornadoes, hurricanes and so on.
Spending the money NOW will short circuit this severe future inflation.
Lmao they keep printing money which raises inflation (a secret tax on the people), then tax the people again to 'curb inflation'. Absolute joke. Politicians are just thieves.
Hey there "ECONOMISTS": Pretty much anyone who has owned a home has made money by spending money. You spend money on new windows and then save even more money on fuel bills. Sorry for all you immature "instant gratification" types that instantly want what you want when you bleat for it. Lower drug prices, deficit reduction, and so on….all coming your way.
Actually, households earning between $50,000 and $75,000 are more likely to see a tax decrease than a tax increase next year.
Jim Crow Joe passing this bill is like the volunteer fireman who goes around setting fires. He creates the problem, and then pretends to be a hero for solving it. Except the volunteer fireman would at least put out the fire, Biden would pump gas on it.
But hey, if you could already afford a $60k electric car, you get a $7500 tax break, I'm sure that will help Americans who are struggling to pay rent and feed their kids.
So, . . . it's a scam?
If you don't have EV, no solar panels on your roof and not a sick retiree on prescription medication, what do you benefit from the Inflation Reduction Act? Just want to be sure I understand the IRA.
Glad I'm Canadian.
Households earning between $50,000 and $75,000 are more likely to see a tax increase than a tax decrease next year.
So this boondoggle has passed. Now the studies come out. They show that this bill doesn't reduce inflation and hardly reduces the impact of climate change by 2100. Soooo, what is it for? Ah, handouts, handouts handouts. Both sides are guilty of this crap and the American people are asleep.
If you Voted for Biden I LOATHE you. He was obviously this bad when he was running. We told you the Democrats were this bad. Jesus you retards fucked us.
How does windmills and solar panel video clips reduce inflation??
This farce of an act just galvanizes how fucking stupid Democrat voters really are. Thanks for fucking us all out of even more money.
We all would’ve thought you dumb fucks learned a lesson these past 2 years, but no.
Time to double down on dumb with the inflation reduction act.
Don’t even try to say that Republicans are responsible for the inflation this act will subsequently cause in a few years once Republicans are back in power.
I try to publicly embarrass a Democrat every day. Get them talking in front of other people and then massacre them to the point where they have to walk away. There’s literally nothing they can say now in 2022. Fucking morons. I won’t let any of you ever forget. Ever.
LIES LIES LIES
Once signed can we repeal this in November ?? Or 2024 ??
Sounds like the GND to me. Can't wait to rip this mess out of law in November. FJB.
No 7500 credit
https://youtu.be/ROBIZepTX2I
Despite the economic market crash,I'm so happy☺️. I have been earning $45,850 returns from my $8,000 investment every 14 days
dont complain for high gas and inflation and losing money when YOU voted for this administration
87,000 armed IRS agents: more than three divisions of troops. Sounds treasonous, doesn't it? It amounts to levying of war against the people of the United States.
In 2024 we’ll have repeal the inflation reduction act , finish the wall , and transfer 87,000 IRS agents to ICE
Hahaha. This is the democrats in Congress reduction act
a lot of rambling and nothing about housing prices
The Federal Reserve has totally failed on inflation.
What idiot named this bill? How in the world could it possibly reduce inflation? Government spending money it doesn't have is, by definition, inflating the money supply.
With 87,000 new IRS workers you'll get your refund faster than ever! Unless you're a tax cheat.
This is the worst act that could ever be passed by our legislature. New hire of 87,000 IRS agents that WILL audit people making far less than $400,000 a year. Do not believe the lies as when you tax large corporations those same corporations will pass those increases and higher prices onto you.
Taxing the oil companies will only increase the price of fuel and energy that we use everyday.
The rich will only get richer off the backs of the middle class who always get screwed in the end.
Donald Trump would never had signed such a terrible law, a lot of people including myself sure miss Trump now. Now I could live with those sometimes nasty mean tweets, but gas at $2.50 a gallon and less was sure nice.
This law will only fuel inflation and the middle class will pay dearly for it. By the way the congress refused to place a clause that the IRS would not audit anybody making less than $400,000. Why is that,???? Because the middle class will pay the brunt of this new law. God help us…
Make Americans Poor Again.
The media fails like always, yeah you'll get $7500 for a new EV however 😂😆 your electric car batteries have to be 100% in the USA say hi to China.
So biden’s priorities are with the IRS as opposed to the CDC, well done! 🤡
This seems a lot like when the Democrats passed the Affordable Healthcare Act and my premiums more than doubled for same coverage.
So they are going to combat inflation by increasing tax expenses for business and increasing spending on green energy?
Because they can’t stand you having even %1 .
Well that’s it ! Goodbye economy!
This bill will help the wealthy. The wealthy can afford a $67k new car. The wealthy can afford new windows. The wealthy can afford an advanced technology HVAC system. Meanwhile the middle and poor get to pay for it with the tax increases. Climate Change? The bill is planned to build solar and wind farms the size of California. Think about that. No one wants to see that. Solar and wind is transitionary technology. The near future will be littered with these fields of uses china crap….
Is inflation reduced yet?
Better dead than red.
Sloppy Joe is a joke of a president
Where is biden is he dead??
The cause of inflation is from printing more money and they're trying to pretend that in order to reduce inflation they have to print more money and spend it on things that have nothing to do with reducing inflation
Why not $369,999,999,999 and 99¢?
I'm done sitting tight for the award advance since i acquire$23,000 every 12 days of my investment..
Lol watch youre Federal taxes go up on youre paycheck