August 20, 2022

USA: The Congressional Budget Office Estimates Those Earning Less Than $400,000 Will Pay An Estimated $20 Billion More In Taxes Over The Next Decade As A Result Of The Biden Tax Hikes.


The Democrats are excited all of that tax payer money is being split among them. They see us as their tax paying working slaves they can use for their grandiose lifestyles. They keep increasing the federal national debt that we are forced to pay back by way of taxation. That's why the Democrats hired 87,000 new IRS agents to make sure they get paid to cover the debt they created. They're looting the US treasury for their personal gain. They don't give a shit about the environment. They're destroying the beautiful natural environment with their stupid Climate Change policies. (emphasis mine)
The New York Post
written by Lydia Moynihan
Monday August 15, 2022

The Inflation Reduction Act sent to President Biden’s desk will end up forcing working-class Americans to pay billions of dollars in new taxes, according to the nonpartisan Congressional Budget Office.

An analysis by the CBO estimates those earning less than $400,000 — the group on which Biden promised not to raise taxes — will pay an estimated $20 billion more in taxes over the next decade as a result of the Democrat-pushed $740 billion package, which also sets aside $80 billion to hire 87,000 IRS agents.

The bill has yet to be scored in its entirety by the CBO — which typically gives each piece of legislation a price tag before it is voted on — but the agency scored the impact of the IRS expansion on middle-class taxpayers on Aug. 12 after a provision from Sen. Mike Crapo (R-Idaho) sought to exempt those making under $400,000 from increased IRS scrutiny.

Crapo’s proposed amendment would have kept those taxpayers from being targeted by the new IRS hires, but his provision was shot down 51-50 in the bill passed by the Senate last week.

On Friday, the House approved the bill. Biden is expected to sign it in the coming days.

The CBO analysis confirms an earlier report from the Joint Committee on Taxation that found that throwing an extra $80 billion at the IRS to improve the agency’s collection of under-reported income will end up targeting small business owners to pay for the legislation.

The IRS is expected to bring in more than $180 billion from other, wealthier taxpayers.

Small business owners will find themselves in the crosshairs of the new wave of IRS auditors, tax experts said.

“Most small businesses are organized as pass-through entities — LLCs and S Corps,” James Lucier, managing director of Washington-based policy research firm Capital Alpha, told The Post. “Proponents of increased auditing specifically say they want to target pass-through entities, which inherently means targeting small business and small business owners.”

“The IRS will have to target small and medium businesses because they won’t fight back,” adds Joe Hinchman, executive vice president at National Taxpayers Union Foundation. “We’ve seen this play out before … the IRS says ‘We’re going after the rich’ but when you’re trying to raise that much money, the rich can only get you so far.”

The White House has dismissed claims the bill will hurt lower- and middle-income Americans, instead noting estimates don’t take into account how much the bill will offset costs for average Americans like prescription drugs.

But Treasury Secretary Janet Yellen has acknowledged the new and improved IRS could ramp up collections from middle-class taxpayers. In a letter to the IRS commissioner last week, Yellen directed “any additional resources … shall not be used to increase the share of small business or households below the $400,000 threshold that are audited relative to historical levels.”

In other words, Yellen conceded that middle-class taxpayers will face more audits and pay more taxes — but that they won’t be unfairly targeted.

“Anytime you get an IRS letter, it could take months or years to get it settled — we’re talking many thousands of dollars to address,” Daniel Bunn, executive vice president at the Tax Foundation, told The Post. “Large companies have constant reviews and lawyers going through everything … small business doesn’t have the resources to fight back in the same way.”
written by John Binder
Monday August 15, 2022

President Joe Biden’s “Inflation Reduction Act” will not be cutting consumer prices for working- and middle-class Americans “anytime soon,” the Washington Post admits.

Last week, House and Senate Democrats passed the $700 billion Inflation Reduction Act, which is set to spend billions on green energy projects as well as more funding for the Internal Revenue Service (IRS) to hugely ramp up audits of American taxpayers.

Despite its name, the Post reports that the legislation will have a negligible impact on inflation that has squeezed working- and middle-class Americans over the last year.

“The legislation … won’t directly address some of the main drivers of surging prices — from gas and food to rents and restaurant meals,” the Post reports:
With inflation raging near its highest level in four decades, Congress is poised to approve President Joe Biden’s signature Inflation Reduction Act. Its title raises a tantalizing question: Will the measure actually tame the price spikes that have inflicted hardships on American households? [Emphasis added]

Economic analyses of the proposal suggest that the answer is likely no — not anytime soon, anyway. [Emphasis added]
The latest federal data shows that the Producer Price Index, the prices charged by American businesses, was up 9.8 percent in July compared to the same time last year. In May, groceries cost Americans 11 percent more than they did in 2021 — a 42-year high.

Most recently, the Biden administration has bragged about bringing down the price of gasoline for American consumers to about $3.99 a gallon even as gasoline under former President Trump was less than $2.40 a gallon when he left office.

While the Post reports that Biden’s legislation will not have much of an impact on consumer prices, the plan is expected to squeeze tens of billions from working-class and middle-class Americans via IRS audits.

The Congressional Budget Office (CBO) reveals that the legislation’s $80 billion for new IRS audits will take at least $20 billion from working- and middle-class Americans earning less than $400,000 a year. These billions are in addition to the billions already taken from this income group.
They don't give a shit about us or the environment. (emphasis mine)

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