As we head into a recession, Democrats are proposing tax increases that land on American families, manufacturers, energy, medical innovators, and job creators already suffering under inflation at a 40-year high.
Despite its misleading title, the Schumer-Manchin tax hike and spending spree bill will worsen inflation over the next two years and do nothing to bring inflation down in years after, according to new Penn-Wharton analysis:
- The Schumer-Manchin bill would increase inflation until 2024.
- The bill does nothing to lower inflation after 2024.
The cost of new tax increases in Democrats’ revived reckless tax-and-spend bill would be borne by U.S. manufacturers and land on Americans in worsened inflation, analysis by the nonpartisan Joint Committee on Taxation (JCT) confirms:
- The analysis was requested by Senate Finance Committee Republican Leader Mike Crapo (R-ID).
- From Senate Finance Committee Republicans: “Democrats claim the book minimum tax is a tax loophole closer, when in reality it is a tax on U.S. manufacturers. Based on the new JCT analysis, 49.7 percent of the tax would be borne by the manufacturing industry at a time when manufacturers are already struggling with inflation, supply-chain disruptions, and an impending recession.”
Democrats fueled inflation that’s crushing families and will make it worse.
- According to the San Francisco Federal Reserve, Democrats’ $2 trillion so-called “stimulus” triggered inflation. As a result, the typical family now has to spend nearly $6,000 more this year to buy the same goods and services they did a year ago.
- Now they want to make it worse by proposing $800 billion in new spending in their “Inflation Reinforcement Act.”
- Higher taxes, more spending: Democrats seek $740 billion in new revenue, including $480 billion in tax hikes.
- Taxes that Hit the Middle Class and Send Jobs Overseas: Democrats’ seek $318 billion by imposing a Made-in-America tax – but with a carveout for politically favored companies. The JCT found that 25 percent of Democrats’ tax hikes would be borne by workers through slashed wages.
- Higher prices at the pump: With gas prices higher than they were a year ago thanks to President Biden’s war on American-made energy, Democrats now seek $38 billion in new taxes on American-produced oil and gas.
- A supercharged IRS that will audit family-owned small businesses: Democrats want to hire 80,000 new IRS agents to audit individuals and small businesses. The IRS has already been found to target lower and middle income earners.
- More corporate handouts: $64 billion in subsidies for insurance companies, $369 billion in Green New Deal spending, and $250 billion in Solyndra-style DOE loan programs.
- Killing cures with Washington price controls: Democrats are reviving their socialist drug pricing scheme that will lead to a reduction of up to 342 cures according to a study by the University of Chicago.
- Higher health insurance prices: Democrats want to put a downpayment towards spending $220 billion in Obamacare subsidies even as their current spending has already resulted in higher health care prices and 17 percent rise in health insurance costs
Democrats’ Made-in-America minimum book tax hikes will land on American businesses and workers in slashed wages.
- Democrats claim they’re only targeting “large corporations,” with the minimum book tax, but the burden of these tax increases will be carried by working families in higher prices, fewer jobs, and lower wages.
- About 200 large companies will be caught in this tax, and many of them would actually pay some of this tax each year.
- The JCT also found that 25 percent of the cost of Democrats’ tax hikes would be paid for by workers in slashed wages.
- The Tax Foundation also warns that the biggest burden of the book minimum tax will be carried by American coal industries, facing a 7.2 percent tax hike, followed by automobile and truck manufacturing, facing a 5.1 percent tax hike.
- Congressional Democrats’ CHIPS plus bill provides $76 billion in corporate subsidies and carve outs to politically connected corporations, who will be exempt from tax increases, greater IRS audits, and inflationary spending that will harm families and small businesses.