Skip to content

President Biden’s Cruel Economy is No Joke

October 07, 2022

While asserting that his economic plans were “no joke,” President Biden repeated several false and misleading claims about his so-called “Inflation Reduction Act” while touting today’s troubling jobs report at a manufacturing plant in Maryland. 

MYTH: Today’s jobs report is proof that wages are growing and our economic recovery is resilient.

FACT: Biden-Flation has delivered the steepest pay cut in 25 years.

  • President Biden is in denial that the American economy is shrinking, as the latest jobs report showed more workers dropping out of the labor force. 
  • As wages shrink, top job creators are bracing for a severe recession in the next year, with more than half considering layoffs in the next six months. 

READ: Brady: Economy Is Shrinking, Inflation Raging, and Job Growth Slowing

MYTH: Democrats’ policies promote American manufacturing.

FACT: Democrats raised taxes on Made-in-America manufacturers.

  • Democrats targeted American manufacturers with their new corporate minimum tax according to analysis by the nonpartisan Joint Committee on Taxation (JCT).
  • In the next decade, manufacturers will be hit with even higher tax hikes, totaling $222 billion, with the greatest surge in taxes coming in the short term, as they struggle with a worker shortage, inflation, and as the economy enters a recession.

READ: Democrats Take Aim at American Manufacturing With Manchin-Biden Build Back Better Tax Hikes

MYTH: Democrats are making sure the biggest corporations begin to pay their fair share of federal taxes.

FACT: Democrats’ tax hikes will land on American businesses and workers in slashed wages.

  • The burden of these tax increases will be carried by working families in higher prices, fewer jobs, and lower wages. The JCT found that 25 percent of the cost of Democrats’ tax hikes would be paid for by workers in slashed wages.
  • About 200 companies will be caught in this tax, and many of them would actually pay some of this tax each year.
  • The Tax Foundation also warns that the biggest burden of the book minimum tax will be carried by American coal industries, facing a 7.2 percent tax hike, followed by automobile and truck manufacturing, facing a 5.1 percent tax hike.
  • Congressional Democrats’ CHIPS plus bill provides $76 billion in corporate subsidies and carve outs to politically connected corporations, who will be exempt from tax increases, greater IRS audits, and inflationary spending that will harm families and small businesses.

READ: Fact Check: Manchin-Biden Bill Loaded with Special Interest Giveaways

MYTH: Democrats’ so-called “Inflation Reduction Act” lowers the cost of prescription drugs.

FACT: Health care costs will soar under Democrats’ socialist drug pricing scheme. 

  • Democrats’ prescription drug price controls will cause prices for new drugs to be more expensive according to the Congressional Budget Office.
  • Democrats’ price controls will also lead to fewer cures, more expensive drugs when they launch, and make America more reliant on China’s drug development and manufacturing supply chains.

READ: Congressional Scorekeeper Confirms Democrats’ Reconciliation Bill Raises Drug Prices

MYTH: Republican tax reform led to less corporate revenue and is merely a handout to corporations.

FACT: Corporate tax revenue is shattering records under TCJA.

  • Corporate tax revenue is coming in 22 percent higher than last year’s record level, according to a CBO report, and is set to hit a new record of $454 billion. CBO had predicted in June 2017 that corporate tax revenue would only hit $389 billion in 2022.
  • As a share of GDP, corporate tax revenue is on track to reach its highest level since 2015 (1.9 percent of GDP).

READ: GOP Tax Reform Helped Low-Income Families, But Their Gains Are Declining After Biden Stimulus

MYTH: Democrats are building an economy that works for the middle class.

FACT: Working families are at a high risk of tax hikes and skyrocketing energy prices.

  • For median-income families earning $50,000-$75,000, households are 33 percent more likely to have a tax hike than a tax cut, according to the JCT.
  • Analysis from the CBO found that Democrats’ $25 billion in tax hikes on American-made energy will result in slashed domestic energy production and higher costs for families. 

READ: Nonpartisan Tax Scorekeeper: Average Working Family Is More Likely to Be Worse Off than Better Off Under Democrats’ Tax Plan

READ: Biden Hurts U.S. Consumers with Tax Hikes on American-Made Energy and Failed Gambit to Beg OPEC for More Oil