Buried inside the Schumer-Manchin compromise spending bill are the usual kitchen sink contents that any large piece of legislation accumulates in order to help speed its passage.
As this bill’s authors have the conceit (or is it the audacity?) to say this bill cuts inflation, reduces the deficit and presumably pays for a portion of all the giveaways it contains. How, exactly, would it do that?
The old fashioned Keynesian way…raising taxes:
The agreement would also raise roughly $470 billion through new tax provisions, the budget group estimates — the biggest of which will fall on the country’s large corporations. After years of rising concern about widening wealth inequality, Democrats failed in their efforts to repeal Republicans’ 2017 tax law. The new bill leaves intact most of the corporate and individual income tax cuts President Donald Trump signed into law, largely because Sen. Kyrsten Sinema (D-Ariz.) had insisted on leaving them untouched.
But it would still raise taxes significantly, and it would give the badly underfunded Internal Revenue Service its biggest budget increase in its history.
“This would certainly be the biggest corporate tax increase in decades,” said Steve Wamhoff, a tax expert at Institute on Taxation and Economic Policy, a left-leaning think tank. “We’ve had decades of tax policy benefiting the rich, but this is really the first attempt to raise revenue in a progressive way that would begin to combat wealth and income inequality.”
Which means it’s very likely to do neither – higher tax rates have a tendency to generate less revenue than projected and there’s no reason to believe these increases will be any different.
But there is a silver lining for those who believe the state needs to scrounge all the revenue it can. The bill it will pour more money into the IRS – the biggest boost in the agency’s history. Which raises the question about giving the tax collector more resources… what could possibly go wrong?
The opinions expressed in this article are those of the author and do not necessarily reflect the positions of American Liberty News.
READ NEXT: The Schumer Manchin Inflation Reduction Act Could Kill You >>
Man walked barefoot
Until the Roman’s invented Roads….
So, you’re saying people had to wear shoes and sandals to walk on Roman roads?
His pipeline deal to while ours are still shut down
What about the “sweetheart” deal for Manchin’s wife’s small business?
These democrats are dictators, and they won’t stop until we all depend on them
Sinema is still there. Never give up. Have Faith and Trust in GOD. Tyranny will fall.Isaiah 49:24-25. Hallelujah!!!!!!!!!!!!!!!!!!!!
I’m afraid the oppression of the Democrats good/evil intentions will cause a rebellion and the rest of us will be caught in the middle. 🙁
The idea is to be the source of all revenues… yours or ours then they have all control
why are we the people allowing this nonsense to go on
The braggart hero’s with guns are fishing and watching baseball.
Because we have RHINOs
Joe Manchin: Insincere, two-faced, liar…bought and paid for politician. Lined his own pockets at the expense of the people in nation he is supposed to be serving.
Yebbut WHY is IRS (reportedly) buying up ammunition? Remember the Roaring Twenties. Are they the new G-Men of the 21st century?
So that average citizens will not have inventory available to defend themselves. This IRS move is straight out of the German playbook from the late 1930’s. Our nation is in serious trouble and I pray to God that there is a Red Tsunami in November and Republicans actually grow a pair!
This needs to be repealed immediately after the elections in January of 2023. First item on the Republicans agenda right out of the gate! If not these brownshirts will literally take down average citizens, mostly conservative, if it is like what happened under Obummer.
“Taxes” should pay for true necessities, not crises created by bad government. Do we need law and law enforcement? Do we need good roads and bridges? Do we need protection from foreign invasion or attack? Do we need to house and feed someone who “invades” uninvited and illegally? Do we need pay for the murderous “mistake” of a couple who didn’t control carnal urges? Do we need to fund radical anti-social groups who terrorize and influence votes? Duh?
If the bill is passed, what happens when Corp. are taxed and they have to pass the costs onto the Public taxpayers. How does this differ from “no tax incrases if you make less than $400,000”?
Dems figure it gives them plausible deniability. “Hey, if corporations raise prices, they’re just greedy. But, we (Dems) didn’t raise your taxes.”
Bingo.. for the fools who don’t get it
Just another smoke and mirrors piece of legislative excrement that WE will ultimately pay for. Tax corporate entities who will pass it down to us, and then some, to cover the increased expense. Shafted again. Folks of WV need to dump Manchin because he sold you, and us, out.
“The agreement would also raise roughly $470 billion through new tax provisions, the budget group estimates — the biggest of which will fall on the country’s large corporations…”
hahahaha–the corporations won’t pay a dime. they just pass it on to us.
Schumer is nothing but a greedy pig who lies every day to line
his pockets. The people who voted for this pig need their district to have the highest taxes put on them. The stupidity of the American voters is just sickening. Always looking for a handout! Lazy, just plain stupid!
This is the regular way of the Democrats fixing all problems of theirs, raise the taxes. That is all they know, and it doesn’t fix nothing.
Who in the heck is in favor of giving the IRS more money? Only lame brained democrats who are attempting to destroy America and put in place their new world order. And all the rest of the commies in the world.
Hey Joe Manchin! We know who stabbed us in the back, that would be YOU! We voters will not forget, good luck with your re election bid! Ain’t gonna happen! Guess YOU will get to go to work in the coal mines, IF they will hire you, otherwise, I hear Burger King is hiring in West Virginia! Sorry pos, we will vote you out!
And wonder why the Dems are so confident after pocketing billions in the Inflation Reduction Act.. because the word on the street is they will COVID as a excuse to create havoc at voter time
The pharmaceutical price part will help inflation, in about 2029. Nothing in it will affect the immediate inflation except possibly exacerbate it.
After so many of these attempts to get Manchin on board… You know he will wait to the vote then opt out.. and if he does not then check the fine print for backhanders (sorry subsidies) to the coal companies
Etched in stone: the deficits will never reverse until the system crashes.