FACT CHECK: Schumer Manchin Tax Increases Worsen Inflation, Delay Deficit Reduction, Weaken the Economy
American families are being crushed by 40-year high inflation thanks to Democrats’ $2 trillion spending package last year. Now that we’ve entered a recession, Democrats are doing their best to raise taxes to pay for even more spending, and make the economy worse. Here’s what Senator Joe Manchin (D-WV) claimed during his recent weekend interviews about the bill:
CLAIM: The Schumer-Manchin tax increases simply close loopholes and focus on large corporations, without new taxes on regular Americans.
FACT: Democrats send 87,000 new IRS agents after you and your family-owned business.
- Democrats want to hire new IRS agents to audit individuals and small businesses. The IRS has already been found to target lower and middle income earners.
- Audits will rise for all individuals by more than 1.2 million per year:
- Nearly half would be on Americans making $75,000 per year or less.
- Low-income taxpayers making up to $25,000 per year would see more audits too.
- Top Biden officials are intent to implement Democrats’ IRS bank surveillance next: Supercharging the IRS will lay the groundwork for the monitoring the Biden Administration has pledged to impose.
FACT: The non-partisan Joint Committee on Taxation shows that the burden of new tax increases falls on lower- and middle-income earners.
- Next year, taxes will increase by $16.7 billion on American taxpayers earning less than $200,000—a nearly $17 billion tax burden on low- and middle-income earners next year, who already suffer the most from higher prices.
- Over the long term, the average tax rate for nearly every single income category would increase, while Democrats’s Green New Deal tax subsidies will effectively send stimulus checks to high-income earners. Those earning below $400,000 are projected to bear as much as two-thirds of the burden of the additional tax revenue collected that year.
FACT: The new Made-in-America tax targets American manufacturing.
- Democrats claim that their “book minimum tax” simply closes loopholes. Yet Democrats provide carveouts to their hand-picked industries while slapping a new tax bill on U.S. manufacturing. Based on the new JCT analysis, 49.7 percent of the tax would be borne by the manufacturing industry at a time when manufacturers are already struggling with inflation, supply-chain disruptions, and worker shortages.
READ: One-Pager: Democrats’ “Inflation and Recession Act” Makes Biden’s Cruel Economy Even Worse
CLAIM:This bill would reduce the deficit and address inflation.
FACT: The Penn-Wharton Budget Model couldn’t be any clearer that this is false, having found that it doesn’t contain any net deficit reduction until 2027, “indicating low confidence that the legislation will have any impact on inflation.”
As the Wall Street Journal notes, “If the first deficit reduction doesn’t come for five years, what’s the help on inflation today?”
CLAIM: This bill would rein in prescription drug costs.
FACT: Democrats’ socialist drug price control scheme will kill up to 342 cures according to a study by the University of Chicago.
CLAIM: This bill would reduce the cost of health care.
FACT: Democrats want to put a downpayment towards spending $220 billion in permanent Obamacare subsidies even as their current spending has already resulted in higher health care prices and 17 percent health insurance inflation.
CLAIM: Democrats promise to cut red tape on energy production after passing this bill.
FACT: This bill is merely the latest step in President Biden and congressional Democrats’ war on domestic energy, with up to $20 billion in taxes on American-made oil and gas, more red tape, and new fees and royalties for domestic energy.
CLAIM: This bill doesn’t send out inflationary checks.
FACT: It does, particularly for politically connected green energy companies.
- $64 billion in subsidies for insurance companies
- $369 billion in Green New Deal spending
- $250 billion in Solyndra-style Department of Energy loan programs.