The Biden Administration continues to push for crippling tax hikes and more spending that will worsen the 40-year high inflation that is robbing Americans’ paychecks.
During the Ways and Means Committee hearing on President Biden’s FY2023 Budget, Democrats repeated debunked claims about supercharging the IRS, their crippling tax increases, and the success of Republican tax reform.
Here are the facts:
FALSE CLAIM: The IRS is underfunded, lacks hiring authority to deal with the backlog, and needs more resources.
- Within his first year in office, President Biden has overseen $6 trillion in total spending with more than $1 billion earmarked specifically by Democrats for COVID response by the IRS, but it took months of Republican pressure to take action on the then more than 20 million tax return backlog.
- Despite delays from Democrats, Congress has given the IRS explicit hiring authority to deal with the backlog and at the GOP’s urging, the IRS announced it will use money in its existing budget to hire 10,000 workers to address the crisis.
- Instead of helping American taxpayers this tax filing season, the Biden Administration has focused on adding more to the agency’s plate and advocating for a weaponized IRS. Adding 80,000 more *auditors* has nothing to do with addressing the backlog that prevents Americans from getting their badly needed tax refunds.
FALSE CLAIM: The Biden Administration’s Global Minimum Tax will level the playing field.
FACT: The Biden Administration is leading an economic surrender that will make Americans less competitive and drive jobs overseas.
- The Biden Administration’s global tax plan offers foreign countries a sweetheart deal: American companies will pay a global minimum tax rate many points higher than the 15 percent rate the Biden Administration will allow for other countries.
FALSE CLAIM: We need to raise taxes to ensure corporations and the wealthiest Americans pay their fair share.
FACT: The Tax Cuts and Jobs Act (TCJA) helped all Americans by reducing the federal tax rates for households across every income level, while increasing the share of taxes paid by the top one percent.
- Three of every four dollars in the 2017 tax cuts went to individuals, cutting taxes for the lowest-income Americans by 10 percent while cutting taxes for the top 1 percent by less than one-half of 1 percent.
- After the GOP Tax Cuts, the rich pay a larger, not smaller, share of income taxes.
FALSE CLAIM: TCJA 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 the CBO’s most recent monthly budget review.
- Corporate tax revenue 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).