Senate Passes the “Inflation Reduction Act of 2022” that Will Destroy the Middle Class

August 10, 2022 in News by RBN Staff

source:  needtoknownews

Senate Democrats on Sunday passed their so-called “Inflation Reduction Act of 2022”, a sweeping, $740 billion tax, climate and health care reconciliation package after an all-night session. $370 billion has been allotted for for climate change including tax incentives to manufacture and purchase electric vehicles and generate more wind and solar electricity. The spending bill also allocates $80 billion to the IRS with plans to increase its staff with 87,000 new agents. A critic pointed out that the proposal will not reduce inflation, but will instead cause massive job loss and increase household electricity expenses by 23%.

Summary by JW Williams

The Inflation Reduction Act of 2022 includes $80 billion for the IRS, to be distributed over the next ten years, allowing them to hire 87,000 new agents, more than doubling their workforce to crack down on tax evasion. At 165,661 employees, the IRS is poised to become larger than the Pentagon, State Department, FBI and Border Patrol combined total employees of 158,779.

Taxpayers with taxable income below $400,000 will supposedly not see an increase in their tax bills, however, the Joint Committee on Taxation committee concluded that the new bill would increase tax revenue by $16.7 billion on Americans earning less than $200,000 a year. Households with less than $25,000 per year were five times as likely to be audited by the IRS than everyone else in 2021. In addition, conservatives worry that they could be targeted by the IRS.

Approximately $385 billion will go to the “climate crisis” and energy policies, supporting electric vehicles, rooftop solar and energy efficiency, and will focus on low income communities. The bill requires a 40% reduction in greenhouse gas emissions by 2030.

The proposal encourages “diet and feed management strategies to reduce enteric methane gas emissions from 8 ruminants“—(animals like cows and pigs). This comes at the same time that farmers in Europe and Canada are facing new regulations that will force them to limit raising animals.

The Inflation Reduction Act of 2022 includes a proposal to raise “approximately $450 billion to pay for deficit reduction, clean energy, and climate investment.” The bill imposes a 15% Corporate Minimum Tax on the top 200 corporations not currently paying taxes at that level. Supporters claim that the 15% increase will raise $313 billion in revenue, however, higher corporate tax rates usually eventually result in fewer jobs for Americans.

The package now moves to the House, where members will vote as early as Friday on advancing the bill to President Biden’s desk. Seven Republican senators, Bill Cassidy, Susan Collins, Josh Hawley, Cindy Hyde-Smith, John Kennedy, Lisa Murkowski, and Dan Sullivan voted with Democrats.