The Inflation Reduction Act of 2022, better known as the new Bidenflation Scam, is fundamentally misleading and at odds with the economic realities that Americans are already experiencing as the United States enters a recession.
As former President Barack Obama previously remarked, “I don’t think during a time of recession you mess with any of the taxes or increase any taxes,” Sen. Joe Manchin, who approved the measure late last week, made a similar statement when he first sought the Senate.
As a result of the economy contracting for a second consecutive quarter, the United States is now formally in a recession. The Democratic-led package, however, undoubtedly would result in higher taxes for Americans. Americans earning as little as $30,000 will pay more, with people earning under $400k bearing more than half of the expected increase in taxes in 2023, according to the Joint Committee on Taxation. The law will significantly enlarge the already enormous federal government and increase the size of the IRS in order to assist with collection.
Of course, 58% of Americans who are now trying to make ends meet do not need higher taxes. But at this point, it’s also the last thing that small businesses can take.
Democrats are attempting to convince voters that their proposal will raise money by reducing loopholes, such as carried interest, which many corporations use to reinvest in their operations. Actually, Democrats are advocating a book tax, which would reduce the economy and eliminate 23,000 jobs.
One of the long-standing pillars of corporate tax policy, according to Manhattan Institute economist Brian Riedl, is the ability to deduct business investments.
Therefore, it is more accurate to say that the Democrats’ policy would slow development and impair supply-demand equilibriums.
Plus, the Democratic measure specifically targets American industries.
The National Association of Manufacturers estimates that the measure will result in the loss of nearly 218,000 jobs, a $68 billion reduction in GDP, and a $17 billion increase in worker pay in only 2023. It’s not a good idea to crush American industry amid a recession the Democrats started. Instead of hollowing out employment, our nation needs to expand the infrastructure that is Made in America.