According to some Republican-leaning news outlets and websites, like RedState and FOX News, Americans are about to face a huge tax increase and during the middle of a ‘recession’. According to Sen. Joe Kennedy (R-LA), “It takes a special kind of stupid, in my judgment, to raise taxes during both a recession and inflation.”
Are these the facts?
The new package that passed the Senate over the weekend will raise an estimated $739 billion. It does this even leaving in place much of former President Trump’s 2017 tax-cut package. (What's in the deal.)
How does the ‘Inflation Reduction Act’ raise this money?
The bill institutes a new 15% minimum tax on corporations (part of an international agreement) that closes loopholes that allowed wealthy companies like Amazon to avoid taxes almost altogether, comparatively speaking.
To raise money, it also will:
Improve IRS tax collection activities, making those who already owe vast sums pay them to the treasury.
Institute a 1% excise tax on companies’ stock buybacks. (Remember the fiasco after the Trump corporate tax reductions? Instead of investing the money in their employees, most just bought back stock to inflate their value).
Save lots of money by allowing Medicare to negotiate the price of some prescription drugs.
There is no new tax on oil and gas, as some republicans have suggested, instead there are technology neutral -- meaning they won't favor renewables over fossil fuels - tax credits for renewable energy investment and clean energy manufacturing, and some tax credits for buying electric powered cars, water heaters and HVAC systems.
Regardless of what the ‘right-leaning' pundits want you to believe, families making less than $400,000 per year will not be affected by tax increases. As a side note, the bill also reduces carbon and methane emissions by 40%, also part of an international agreement.