The Democrats promise to raise your taxes if you vote for them and that’s one promise they will always keep. House Ways and Means Committee chairman Richard Neal (D-MA) promised to raise taxes if you return them to a majority in congress after the midterm election. The tax increases would include tax hikes on individuals and corporations potentially during a recession and 40-year-high inflation.
The Democrats previously tried to raise taxes in the failed Biden Build Back Better Bill in 2021. According to McDermott Will & Emery, that plan includes expanding the 3.8 percent net investment income tax, a 5-8 percent surcharge on certain taxpayers, and a 15 percent minimum tax on large corporations.
From Fox News
Earlier this week, during an appearance on CNBC’s “Squawk Box,” White House economic adviser Jared Bernstein was questioned about the impact the Inflation Reduction Act will have on taxpayers and whether the IRS agents that get hired would audit individuals making less than $400,000 a year.
“I want to be clear, is the president guaranteeing nobody making under $400,000 will be audited [by the new agents]?” asked host Brian Sullivan.
“No, no, no. That’s not what I said,” Bernstein responded. “Nobody making under $400,000 will pay higher taxes under the Inflation Reduction Act.”
“If they are doubling the size of the IRS, then who are they going to go after?” asked Sullivan, while also mentioning small businesses.
According to the Joint Committee on Taxation, Americans making less than $10,000 per year would see a 0.3% tax hike starting in 2023. Overall, starting in 2023, taxes would increase by $16.7 billion for Americans earning less than $200,000.
On Sunday, Senate Democrats passed a tax hike on most corporations that make $1 billion or more each year. “The corporate tax provision emerged as a point of contention as senators neared a final vote on Sunday, CBS News reported, adding:
Seven Democratic senators — Sinema, Jon Ossoff, Raphael Warnock, Catherine Cortez Masto, Maggie Hassan, Mark Kelly and Jacky Rosen — joined Republicans in backing an amendment put forward by GOP Sen. John Thune of South Dakota that exempts some firms with private equity backing from the 15% minimum corporate tax rate.
The House is set to vote on the Senate’s proposal Friday. If the House passes the bill through a process of reconciliation, Biden will presumably sign it.
