Congress made Biden a liar with Inflation Reduction Act: tax expert – Fox Business | Vette Leader

Americans for Tax Reform President Grover Norquist has blasted Joe Biden and accused the President of lying to Americans about the Inflation Reduction Act hitting the middle class with taxes, contrary to his promise not to raise taxes.

“If you tax a company, who pays? workers with lower wages,” he told Mornings with Maria on Tuesday, noting that consumers will be forced to pay more as higher prices will be a consequence of the legislation; Investors in their 401(k) plans and individual retirement savings (IRA) accounts will face lower stock prices because of the bill.

“It’s all affecting middle-income Americans,” Norquist said. “The President knows that; he lied.”

The tax expert also accused Senator Joe Manchin, DW.V., of lying “when he said he would not support such tax increases.”

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“He signed anyway, as did Senator Sinema from Arizona; she knew better and signed anyway,” he continued.

Norquist stressed that while President Biden has repeatedly pledged throughout his presidency and campaign not to tax Americans earning less than $400,000 a year, Democrat spending and the tax law will increase taxes for everyone.

After months of painstaking negotiations, Senate Democrats on Sunday approved the sweeping health care and climate change spending package, which equates to one of the largest tax hikes in decades.

The 2022 Anti-Inflation Act – passed on party line with Democrats using the budget voting process – would raise an estimated $739 billion over the next decade, with the proceeds going to initiatives to combat climate change and curb drug prices, as well as efforts to reduce the nation’s $30 trillion debt.

That includes about $433 billion in new spending, while about $300 billion of the new revenue would go towards filling the country’s deficit. Democrats say the legislation will help bring down inflation and give Americans relief in the form of lower health care costs, while Republicans argue the measure does little to combat higher prices — and could actually worsen the crisis.

The bipartisan Congressional Budget Office said in an analysis last week that the spending bill will have a negligible impact on inflation.

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The bill, which now faces the House of Representatives for a vote that could take place as early as Friday, is a far cry from the ambitious $2 trillion agenda that President Biden launched last year, which focused on significant tax hikes for wealthy Americans and businesses.

“This law is far from perfect. It’s a compromise. But that’s often how progress is made,” Biden said in the White House last week. “My message to Congress is this is the strongest piece of legislation you can pass.”

“The President should be concerned because Congress has made a liar out of him,” Norquist said Tuesday. “His biggest promise was that he would never levy taxes on anyone making less than $400,000 a year.”

He then noted that the bill’s tax hike on natural gas, crude oil and coal would affect all Americans.

“These all hit directly,” he emphasized. “They increase energy costs [and] they make people poorer.”

Norquist then pointed out that under the legislation, the Internal Revenue Service would get $80 billion to improve tax enforcement by hiring more agents and introducing new technology to prosecute tax evaders.

Grover Norquist, president of Americans for Tax Reform, has criticized President Biden for breaking his promise not to levy taxes on Americans earning less than $400,000 a year with the Inflation Reduction Act. (AP Photo/Evan Vucci / AP Newsroom)

Democrats expect a beefed-up IRS to add $124 billion in additional revenue by cracking down on tax evasion by wealthy individuals and businesses.

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According to analysis released by House Republicans, Americans earning less than $75,000 a year should get 60% of the additional tax checks expected under the Democrats’ spending package.

The analysis, which is a conservative estimate based on current audit rates and tax filing data, shows that individuals with annual incomes of $75,000 or less would be subject to 710,863 additional Internal Revenue Service (IRS) audits, while those who earn more than $1 million would be subject to 710,863 additional audits receive 52,295 additional audits under the bill. The Anti-Inflation Act would roughly double the IRS’s budget to increase enforcement, and thereby increase federal tax revenue.

“There is no more money from big companies or from rich people; they have been fully audited for years. it is you [the IRS] after — if you read their literature, look for middle-income self-employed people,” Norquist argued. “That’s her goal.”

He then pointed to the 1% consumption tax on company share buybacks that is set to come into effect in 2023. Democrats — who estimated this new levy will net about $74 billion over the next decade — are hoping to curb companies’ tendency to buy back their own stock from investors.

Norquist argued, “When a company buys back its stock — increasing the value of the stock for people with an IRA or 401(k), or when you’re a government employee and your pension is covered by stock held for you by your city or condition – you will see the value of your life savings drop.”

He emphasized that “half the country” invests in the stock market through IRA or 401(k) accounts.

“Half the country has already been damaged by the President’s damage to the stock market, the value of people’s life savings,” Norquist argued.

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“If you save your money in cash, he’s inflated it to the point where it’s worth less than it used to be. When you go public, it’s worth less than it was when he took office.”

He then emphasized that “this new tax will make it worse for people with 401(k)s, IRAs who own stocks directly and fund contributory pensions.”

Megan Henney and Thomas Catenacci of FOX Business contributed to this report.

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