One Democrat Senator Can Stop Middle-Class Tax Hike
COMMENTARY
By Akash Chougule — August 05, 2022
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Democrats are calling for a massive middle-class tax increase during an inflation crisis to pay for billions in corporate welfare. It sounds absurd, but it’s true.
The average American family will spend $5,520 more in 2022 to afford the same quality of life as 2021, and poll after poll shows rising costs are the nation’s biggest concern; yet Democrats in Congress are trying to raise taxes across the board to fund hundreds of billions in giveaways to politically-favored industries.
The so-called “Inflation Reduction Act” introduced by Sen. Joe Manchin in July is many things, but inflation reduction it is not. Analysis from the University of Pennsylvania’s Wharton School of Business, which Manchin previously said is his budgetary model of choice, says that the $739 billion behemoth is unlikely to have any impact at all on inflation. Congress’ nonpartisan Joint Committee on Taxation says it will raise taxes on every income bracket above $30,000 per year. President Biden has repeatedly pledged he would not raise taxes on any family making less than $400,000, but the committee found that the middle class and low earners will face the steepest tax hikes under the proposal. Biden isn’t the only supporter willing to violate his commitments amid record inflation: both Manchin and Senate Majority Leader Chuck Schumer spoke out against tax increases during recession – notwithstanding the White House’s attempts to change the definition of the word for political gain.
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Democrats claim these taxes are borne by corporations, but it is well established and agreed upon by economists – including left-leaning experts – that much of the burden of corporate taxation is borne by workers. Estimates vary, but the Congressional Budget Office found that workers bear about 73% of the cost. For low-income households, the burden of corporate taxation outweighs that of individual income taxes.
The damage to the economy would be broad even as Manchin insists on the limited scope of tax hikes. The five industries hardest hit employ one in every four American workers, or about 40 million people in total.
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Remember in November!
Even if you have to hold your nose, the R’s — who are not much better are the party out of power — hence vote them in.
You’ll have a chance to vote them out the next time around.
I’d rather a do nothing Gooferment than one party Gooferment.
Argh!
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Reinke Faces Life 