If you’re reading this, the Inflation Reduction Act of 2022 will most likely raise your taxes. Even those who aren’t reading this will see their taxes go up, despite claims by Joe Biden to the contrary.
“The Inflation Reduction Act of 2022 will lower health care costs for millions of Americans. And, for the first time in a long time, make the largest corporations pay their fair share without any new taxes on people making under $400,000 a year,” Biden tweeted on Sunday.
I’m sure whoever wrote that tweet on Biden’s behalf believed it, too. However, according to an analysis by the nonpartisan Joint Committee on Taxation (JCT) the only people who won’t see their taxes go up are those who make between $10,000 and $30,000 a year. Everyone else will be paying more.
“Those making under $10,000 will see a .3% increase in their federal taxes; those making between $30,000 and $75,000 will see a .1% increase; those making between $75,000 and $100,000 a .2% increase; those making between $100,000 and $500,000 a .3% increase; those making between $500,000 and $1,000,000 a .5% increase; and those making over $1,000,000 a year will see a .6% increase,” explains the Daily Wire.
Last week, Sen. Joe Manchin (D-W.Va.) struck a deal with Senate Majority Leader Chuck Schumer (D-N.Y.) to support the bill.
“It will subsidize the wealthy at the expense of working families, raise taxes on workers making as little as $10K a year, and unleash an army of IRS agents on taxpayers,” Sen. Cornyn (R-Texas) tweeted. “Oh, and it won’t reduce inflation anytime soon.”
According to the University of Pennsylvania’s Wharton Budget Model, it won’t reduce inflation at all — in fact, it will likely increase inflation through 2024.