Senators Chuck Schumer and Joe Manchin have reached a deal that will raise taxes on earners making less than $400,000 yearly, according to the Senate finance committee. Senator Manchin believes the bill is “not putting a burden on any taxpayers whatsoever.”
NEW YORK POST: Schumer-Manchin deal raises taxes on earners under $400K, study shows
David Propper; July 31, 2022
The energy and health care deal from Sens. Joe Manchin and Chuck Schumer would raise taxes on millions of Americans earning less than $400,000 annually, Senate Republicans say, citing nonpartisan data.
The Congressional Joint Committee on Taxation found that taxes would jump by $16.7 billion on American taxpayers making less than $200,000 in 2023 and raise another $14.1 billion on taxpayers who make between $200,000 and $500,000.
During the 10-year window, the average tax rate would go up for most income categories, the Senate GOP said, citing the data from the joint committee. And by 2031, new energy credits and subsidies would have people earning less than $400,000 pay as much as two-thirds of the additional tax revenue collected that year, the release said.
“Americans are already experiencing the consequences of Democrats’ reckless economic policies. The mislabeled ‘Inflation Reduction Act’ will do nothing to bring the economy out of stagnation and recession, but it will raise billions of dollars in taxes on Americans making less than $400,000,” said Sen. Mike Crapo, an Idaho Republican who sits on the Senate Finance Committee as a ranking member, and who requested the analysis.
“The more this bill is analyzed by impartial experts, the more we can see Democrats are trying to sell the American people a bill of goods,” Crapo added.
But Democrats are objecting to the GOP’s assertions, with a spokesperson for Senate Finance Chair Ron Wyden (D-Ore.) stating families “will not pay one penny in additional taxes under this bill,” according to Politico.
The spokesperson, Ashley Schapitl, also said the JCT analysis isn’t complete because “it doesn’t include the benefits to middle-class families of making health insurance premiums and prescription drugs more affordable. The same goes for clean energy incentives for families,” Politico reported.
The plan from Manchin (D-WV) and Schumer (D-NY) would spend $369 billion on energy and climate initiatives and another $64 billion to continue federal health insurance subsidies.
The measure would raise $739 billion over a 10-year span, with much of that money coming from a 15% corporate minimum tax, the West Virginia Democrat and the Senate majority leader said.
Manchin, in touting the bill, said it “would dedicate hundreds of billions of dollars to deficit reduction by adopting a tax policy that protects small businesses and working-class Americans while ensuring that large corporations and the ultra-wealthy pay their fair share in taxes.”
He said on CNN Sunday the bill is “not putting a burden on any taxpayers whatsoever.”
On “Meet the Press,” he said, “I agree with my Republican friends, we should not increase and we did not increase taxes.”
Photo: Reuters/Elizabeth Frantz