Democrats play down nonpartisan analysis showing inflation bill raises taxes
Democrats rushed Monday to downplay a nonpartisan assessment of their inflation bill, showing it would lead to nearly all Americans paying higher taxes.
Democrats argued the Cut Inflation Act would fulfill President Biden’s promise not to tax Americans who earn less than $400,000 a year and instead tax big business. Over the weekend, Republicans released a Joint Committee on Taxation (JCT) analysis on Friday showing that most Americans would pay higher taxes under the legislation.
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“A family earning less than $400,000 will not pay a penny in extra tax under the Inflation Reduction Act,” said Ashley Schapitl, spokesperson for Senate Finance Committee Chairman Ron Wyden. , D-Ore., to FOX Business in an email. “It’s the same economic argument that Republicans have been making for decades, and the American people aren’t buying it.”
“The American people are smart,” she continued. “They knew the Republican corporate giveaway in 2017 didn’t give them a tax cut. They know that making corporations pay their fair share with billions in profits doesn’t raise their taxes.”
The JCT study concluded that in 2023, taxpayers earning less than $10,000 would see their tax rate drop from 7.3% to 7.6%, while those earning less than $200,000 would pay in total $16.7 billion in additional taxes.
Schapitl argued that the analysis was “incomplete” because it does not take into account tax credits and incentives enshrined in legislation.
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“The analysis that Republicans are pointing to is also incomplete,” Schapitl said. “That doesn’t include the benefits for middle-class families of making health insurance premiums and prescription drugs more affordable. The same goes for clean energy incentives for families.”
The JCT did not consider health care or prescription drug tax impacts under the bill, but listed about 20 clean energy provisions it considered in the bill. ‘to analyse.
Meanwhile, Sen. Joe Manchin, DW.Va., who unveiled the bill last week, told reporters Monday that he would “agree to disagree” with the JCT’s findings, according to CNN reporter Manu Raju. Sen. Chris Murphy, D-Conn., a member of the Senate Health, Education, Labor and Pensions Committee, also pushed back against the study.
“The only tax increases in the Cut Inflation Act are making the biggest corporations pay SOME corporate taxes and closing a glaring loophole for some billionaire/millionaire investors,” he said. tweeted Murphy on Monday. “This $$ is used to reduce drug and energy costs for ordinary Americans.”
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The Connecticut senator also criticized Senate Finance Committee member Mike Crapo for saying the JCT concluded the bill raised taxes for Americans earning less than $400,000 a year.
“This is absolutely not what the JCT says,” he tweeted.
Thomas Barthold, the JCT’s chief of staff, told FOX Business on Monday that the tax increases highlighted in the analysis were primarily the result of the 15% minimum corporate tax included in the Tax Reduction Act. inflation.