{"id":8894,"date":"2022-09-19T11:42:41","date_gmt":"2022-09-19T11:42:41","guid":{"rendered":"http:\/\/lonecandle.com\/?p=8894"},"modified":"2022-09-19T11:42:41","modified_gmt":"2022-09-19T11:42:41","slug":"congress-just-passed-the-inflation-reduction-act-it-will-hike-taxes-on-some-middle-class-households","status":"publish","type":"post","link":"https:\/\/lonecandle.com\/?p=8894","title":{"rendered":"Congress Just Passed the Inflation Reduction Act. It Will Hike Taxes on Some Middle-class Households."},"content":{"rendered":"\n

\n\n“Despite the bill’s name, independent analysts have found<\/a> 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\u2014it 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.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

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<\/a> 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.”<\/p>\n\n\n\n

…<\/p>\n\n\n\n

” 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.”<\/p>\n\n\n\n

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Congress Just Passed the Inflation Reduction Act. It Will Hike Taxes on Some Middle-class Households.<\/a><\/blockquote>