Democrats fueled inflation and caused a recession and now want to make the economy worse with Schumer-Manchin tax hikes.
Analysis by Americans for Tax Reform shows the Schumer-Manchin tax hikes will land on working families with higher prices, fewer jobs, and lower wages:
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The cost of new tax increases will be borne by working families in the form of higher prices, fewer jobs, and lower wages. (Made-in-America Tax)
- “While Democrats claim they are only targeting large, profitable corporations, the cost of these tax increases will be borne by working families in the form of higher prices, fewer jobs, and lower wages.”
- “A Tax Foundation report from last December found a 15 percent book tax would reduce GDP by 0.1 percent and kill 27,000 jobs.”
- “The Tax Foundation also warned that current supply chain issues could be worsened by the book tax’s disproportionate burden on key industries.
- “The coal industry faces the heaviest burden of the book minimum tax, facing a net tax hike of 7.2 percent of its pretax book income, followed by automobile and truck manufacturing, which faces a 5.1 percent tax hike.”
CBO warns “lower spending on research and development and thus reduce the introduction of new drugs.” (Drug Price Controls)
- Democrats claim revenue would be generated from Medicare savings from Washington price controls. “Yet these ‘savings’ wouldn’t begin until 2026, fueling concerns that budget gimmicks are allowing Democrats to increase spending now for promised offsets later.”
- “This provision would also restrict medical innovation and limit the supply of new medicines available. Price controls never work because they cause supply shortages.”
- “CBO warned the reduction in manufacturers’ revenue could be as high as $1 trillion over the next ten years and would “lower spending on research and development and thus reduce the introduction of new drugs.”
- “The CBO further stresses the ‘uncertainty’ in assessing the number of new medicines that would be prevented from coming to market. The agency already revised its original assessment to increase the number of drugs prevented from being introduced by 50 percent.”
Supercharged IRS Will Increase Audits (87,000 new IRS auditors)
- “The bill would spend $80 billion beefing up the IRS” giving the “IRS unlimited authority to hire 87,000 additional IRS agents to ramp up audits on small businesses and taxpayers.”
- “The IRS would perform an additional 1.2 million annual audits under the plan. Democrats claim the increased spending on enforcement would net $124 billion.”
- “Democrats spend 14 times as much money for enforcement — such as small business audits — than for ‘taxpayer services’ — such as answering the phone. IRS employees only answer the phone ‘19 or 20 percent” of the time.’”
Attacking America’s Investment Infrastructure Jeopardizes 25 Million American Jobs (Carried Interest Capital Gains)
- “Raising taxes on carried interest capital gains should be rejected. It is a terrible tax policy that would harm economic growth, reduce jobs, and reduce the returns of public pension funds across the country.”
- “Sen. Kyrsten Sinema (D-Ariz.) has previously opposed increasing taxes on carried interest capital gains, according to reporting.”
- This would hit America’s investment infrastructure, “which together account for over 25 million American jobs. In response, firms would downsize and decrease investment, causing both a loss of jobs and a reduction in the returns investors see.”
Higher Energy Bills for Consumers and Higher Costs of Everyday Products (Natural Gas Tax)
- “The legislation would impose a regressive tax on oil and gas development based upon emission levels of methane during production, leading to higher energy bills for consumers and higher costs of everyday products.
- “A letter to Congress from the American Gas Association warned that the methane tax would amount to a 17 percent increase on an average family’s natural gas bill. Democrats have included a tax in the bill despite retail prices for energy surpassing multi-year highs in the United States.”
- “The new tax would be phased in, beginning at $900/ton of methane emissions in 2023 and rising to $1,500/ton for emissions reported in 2025. These levels are unchanged from the House-passed version of reconciliation that was scored by the CBO.”