How the Dems’ spending bill is pounding Americans with billions in new taxes – New York Post | Vette Leader

Tax experts are still trying to figure out exactly what the so-called Inflation Reduction Act — a 755-page patchwork of giveaways, carveouts and subsidies that purports to ease inflation by reducing the deficit and raising taxes — will cost the average American.

However, they agree on one thing: it should be a lot.

“Everyone faces a little less after-tax income over the long run,” Garrett Watson, senior policy analyst and modeling manager at the Tax Foundation, told The Post.

The biggest reason for the confusion: The bill has yet to be fully evaluated by the Congressional Budget Office — the bipartisan agency that usually gives each bill a price tag before it’s voted on. But the Inflation Reduction Act, a slimmed-down iteration of President Biden’s previous multi-trillion-dollar Build Back Better proposal, came about so quickly that it has yet to be fully analyzed.

“This is the world’s biggest last-minute housework,” James Lucier, chief executive of Washington-based policy research firm Capital Alpha, told The Post on Monday. “Nobody knows if the numbers are right, and a lot of people aren’t even sure what’s in them anymore.”

“We’re still updating our modeling with the change in bill over the past few days,” agreed Watson. “The fact that there are so many last-minute tweaks to legislative changes makes it difficult to keep track, for both tax professionals and ordinary Americans.”

Tax experts are still trying to figure out exactly what the so-called Inflation Reduction Act — a 755-page patchwork of giveaways, carveouts and subsidies that purports to ease inflation by reducing the deficit and raising taxes — will cost the average American.

Senator Chuck Schumer’s bill has yet to be fully evaluated by the Congressional Budget Office.
MICHAEL REYNOLDS/EPO-EFE/Shutter

While the CBO is still collating the numbers on the $740 billion bill for energy and health spending, they’ve made one thing clear: The legislation will have a “negligible” effect on inflation through at least 2022 and 2022 — the very problem they’re addressing supposedly about 2023.

“The real damage here comes from this incredibly arbitrary legislation: Passing massive bills without the usual quality control process, without committee hearings, without the things that really create quality legislation that can last,” Lucier added.

Bernie Sanders
Bernie Sanders has criticized the “so-called” Inflation Reduction Act, saying it will have “minimal impact on inflation”.
Los Angeles Times via Getty Imag

As Americans wait and see how much the bill — which the House of Representatives is expected to pass sometime Friday and send to President Biden — will smash their wallets, Americans for Tax Reform has compiled a list of the biggest costs to families based on a combination of Data from the Joint Committee on Taxation of the CBO and Congress.

They include:

  • A $6.5 billion a regressive tax on American energy companies that will be passed on to families in the form of higher energy bills — and that could send the average household skyrocketing Natural gas bill by June 17%.
  • A 16.4 cents per barrel tax on imported crude oil and petroleum products given to families who want to fill up their cars with petrol – amounting to a $12 billion tax on buyers of oil or gas products.
  • an increased one Tax rate on mined coal, which is supposed to bring in an extra $1.2 billion, and will also increase the cost of families’ energy bills. The levy on underground coal will increase from 50 cents per tonne to $1.10 per tonne. Open pit coal is taxed at 55 cents per ton instead of 25 cents per ton.
  • A new 15% tax on companies with a profit of at least $1 billion to shareholders, known as “book value”. Democrats say it will raise an estimated $313 billion But critics say the tax will also be passed on to Americans in the form of higher prices, fewer hires and cut wages.
  • That $124 billion stock repurchase taxwhat will likely mean 401(k)s, IRAs and pensions are shrinking for most Americans – Retirement accounts make up almost 37% of the $22.8 trillion stock market.
  • 80 billion dollars dumped on IRS to help agency collect underreported income, set to return $124 billion to the federal government, but will ultimately target small business owners. According to the Joint Committee on Taxation, between 78% and 90% of the estimated additional $200 billion the IRS will collect will come from Americans earning less than $200,000 a year.
  • A 95% Excise duty for drug manufacturers that could cost more than $1 trillion over the next decade by reducing the development and introduction of new drugs.
  • $52 billion raised as part of a non-corporate tax hike, which will hurt medium-sized and family businesses.

Although legislation can be put together quickly, the aftermath of these tax hikes is expected to be felt for a while, with Watson even predicting that the legislation would take “a couple of years” to be fully implemented.

“For example, this minimum book tax is going to take a lot of regulation to apply to companies that have questions about every nook and cranny of the law,” Watson said. “It’s far from over.”

“We cannot afford to go through a process like this again,” Lucier added. “Such a mess damages the reputation of Congress as a legislative body. This is not how the system is supposed to work.”

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