“Despite the bill’s name, independent analysts have found it will have virtually no impact on inflation. In reality, it is a pared-down version of what Biden originally pitched as the “Build Back Better” plan—it leaves aside much of the original bill’s spending, but it maintains a huge corporate tax increase, huge spending on green energy initiatives, and a plan to swell the ranks of IRS agents. What was originally a roughly $4 trillion proposal that would have relied heavily on borrowing ended up being something of a rarity in Washington: a bill that will raise more revenue than it spends.
And where will it get that revenue? Quite possibly from you. Households earning as little as $50,000 annually are more likely to see a tax increase than a tax break from the legislation.
In the final hours before the House vote, the Joint Committee on Taxation (JCT) completed a breakdown of how the bill’s corporate tax increases would affect households at various income levels. The JTC, a nonpartisan number-crunching agency within Congress, found that households earning between $50,000 and $75,000 are more likely to see a tax increase than a tax decrease next year.
Higher-earning households are more likely to see tax increases, but households earning more than $1 million next year are actually far more likely than lower-earning households to get a tax break.
That fits with what The Tax Foundation, a tax policy think tank, found when it analyzed the bill. The Inflation Reduction Act will “would also reduce average after-tax incomes for taxpayers across every income quintile over the long run,” the Tax Foundation reported on Wednesday. Those tax increases will reduce long-term economic output by about 0.2 percent and could eliminate 29,000 jobs, the group found.”
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” Tax increases on corporations get passed along from the board room table to the kitchen table in a variety of ways: lower pay for workers, higher prices for consumers, and smaller investment returns for shareholders.”
“Several Florida conservatives who question President Joe Biden’s 2020 victory could be heading to Congress in November, thanks to the state’s contentious redistricting process muscled through the Legislature by Gov. Ron DeSantis.”
“After Manchin agreed with Senate Majority Leader Chuck Schumer on the party-line tax, health care and energy bill, the West Virginia Democrat found himself bargaining with fellow moderate Sen. Kyrsten Sinema. Both hard-nosed negotiators, the Arizona Democrat’s business-friendly tax-approach clashed sharply with Manchin’s more progressive positions on taxes.
Manchin sought to target the wealthy and ended up agreeing with Schumer to target the so-called carried interest loophole that allows some people to pay lower tax rates on investment income. He also signed off on a corporate minimum tax package that most Democrats believed Sinema supported.
Ultimately, Sinema took a scalpel to the corporate minimum tax and scuttled any changes to carried interest, which Manchin called particularly “painful.” Triangulating between them through all of it: Schumer, whose job was harmonizing the views of the very public Manchin with an often-silent Sinema.”
“Permitting is the process for getting federal approval for energy projects, including oil and gas pipelines, which often undergo extensive review for their environmental impact. It can be a long and expensive process, and while Republicans and Democrats agree that the experience could be improved, they differ on what those reforms should entail.
Sen. Joe Manchin (D-WV), a chair of the Senate Energy and Natural Resources committee who has deep ties to the coal industry, has long taken issue with the current permitting process, arguing that it’s too convoluted. This summer, he struck a deal with Senate Majority Leader Chuck Schumer: In exchange for Manchin’s backing on the Inflation Reduction Act, Schumer guaranteed a vote on permitting reforms that would streamline approval of fossil fuel and renewable energy projects.”
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“In a letter sent to both Schumer and House Speaker Nancy Pelosi last week, House lawmakers argue Manchin’s reforms would make it easier to greenlight harmful oil and gas projects, and reduce constituents’ abilities to oppose such endeavors. Additionally, they claim that attaching the policies to a must-pass bill would force lawmakers to choose between “protecting … communities from further pollution or funding the government.””
“The Bipartisan Safer Communities Act, which passed the Senate 65-33 after weeks of negotiations, doesn’t go as far as many Democrats wanted. But it introduces tailored reforms meant to incentivize states to keep guns out of dangerous people’s hands, provide new protections for domestic violence victims, enhance screening for gun buyers under the age of 21, and crack down on illegal gun purchases and trafficking.
The bill also provides billions of dollars in additional funding for school safety and mental health resources. Democrats have stressed they don’t believe that America’s gun violence epidemic can be solved by investments in mental health resources, as Republicans have argued, but have said that they won’t pass up the opportunity to put more money toward mental health.”
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“Ultimately, 15 Republicans and 50 members of the Democratic caucus ended up joining them in voting for the bill. The vote was bipartisan on the House side too, with 14 GOP lawmakers — including Rep. Tony Gonzales, whose district includes Uvalde — voting yes.”
“Competitive congressional districts have been steadily disappearing for decades. In the current redistricting cycle, six highly competitive districts in the House of Representatives were drawn out of existence. The Cook Political Report estimates that less than 8 percent of congressional districts will be competitive come November.
This is a problem. It’s not because competitive districts are a powerfully moderating force on our democracy — instead, the decline of competitive districts is a problem that reflects deeper causes of partisan polarization and leaves the overwhelming majority of Americans in places where their votes don’t matter, and where parties and candidates don’t need to work for anybody’s votes.
Governing in America requires compromise. But when over 90 percent of congressional districts lean toward one of the two major parties, that means most representatives have little incentive to compromise. In fact, representatives increasingly face strong pressures to be very partisan, which has made governing very difficult.”
“The inconvenient truth behind all this fraud and waste is that these government programs never should have been designed as they were. For example, while the federal government justifiably boosted state unemployment benefits at the beginning of the pandemic, it was irresponsible to enhance the benefits by $600 a week. As a result, 76 percent of the individuals who received such benefits were making more by not working than by working. It was also irresponsible to extend the program long after the economy reopened and resumed growing.
The same is true of the overly generous three rounds of $1,200, $600, and $1,400 individual payments paid to people who either already received the enhanced unemployment benefits or who never lost their jobs. Most recipients of these funds didn’t need them. In fact, only 15 percent of people who received the first round of checks said they had spent it or planned to spend it. And there were other benefits on top of these checks.”
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“This non-fraudulent spending is now helping to fuel inflation.
Then, you have the money dispensed to corporations. In one way or another, that spending made up a huge share of the COVID-19 relief. Indeed, whether through the airline bailouts or the Payroll Protection Program, shareholders collected trillions of dollars in government handouts they didn’t need. Most of the PPP funding, for example, went to companies whose workers were never at risk of losing their jobs since they were well-suited to work from home.”
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“billions of dollars went to state and local governments, including for schools that stayed closed, even though many of these governments’ revenue growth equaled or exceeded pre-pandemic levels.
Of course there was some fraud, but the malfeasance happened only because the programs were created in the first place and designed to go to everyone regardless of need. This reckless “design” is the true scandal.”
“The bill would repeal the 1996 Defense of Marriage Act, which previously defined marriage as a legal union between a man and a woman, and it would guarantee recognition of same-sex marriages and interracial marriages under federal law. House Democrats emphasized that this vote was important to enshrine federal protections in the wake of the Supreme Court’s decision to overturn Roe v. Wade and Justice Clarence Thomas’s statement that other rights, like same-sex marriage, could be considered next.
It’s not yet clear what the fate of the legislation will be in the upper chamber, however.”
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“Passage of this legislation would be historic.
It would codify the right to same-sex marriage under federal law and would prevent states from trying to nullify same-sex marriages and interracial marriages if they were valid in the places where they were performed. Ultimately, it’s both a preemptive move that House Democrats are taking if the Supreme Court were to overturn the precedent set by Obergefell v. Hodges and a way for them to get Republicans to take a stand on the issue.”