WSJ: Schumer-Manchin Deal is a Tax Increase on Every American

August 01, 2022

Democrats drove the economy into a recession and the new Schumer-Manchin “Inflation and Recession Act” worsens inflation and raises taxes on American businesses, job creators, and workers at the worst possible time, according to experts.

The Wall Street Journal editorial board writes: “The more Americans learn what’s in this tax-and-spend behemoth, the more they’ll dislike it.”

…worsens inflation: “The Penn Wharton Budget Model, which Sen. Manchin has been known to watch, examined the details of Schumer-Manchin and found that it doesn’t contain any net deficit reduction until 2027.”
…harms American manufacturers and job creators: “Evidence is emerging that the new Schumer-Manchin 15 percent minimum tax on corporate-book income is especially harmful to U.S. manufacturing firms. An analysis by Congress’s Joint Committee on Taxation (JCT), which is hardly a nest of supply-siders, found that 49.7 percent of the tax would hit U.S. manufacturers.”
…cuts wages for workers: “An analysis by the National Association of Manufacturers says the tax in 2023 alone will reduce real GDP by $68.5 billion and cut labor income by $17.1 billion…Raise the corporate tax rate, and you’re cutting wages and salaries for workers.”
…raises taxes on all Americans: “The JCT finds that average tax rates will increase for nearly every income category in 2023 under the bill.”
…violates President Biden’s tax pledge: “Taxes will rise by $16.7 billion in 2023 on Americans earning less than $200,000 a year. Taxpayers earning between $200,000 and $500,000 will pay $14.1 billion more. This gives the lie to Democratic claims that no one earning under $400,000 will pay more taxes under the bill, a promise Mr. Biden also made in his campaign. The reality is that the Schumer-Manchin bill is a tax increase on nearly every American.”

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