Joe Manchin is a Democrat. Although he may side with the Republicans on a number of issues, we must remember that his voter registration card identifies that he’s on the blue side of politics. And his recent agreement with Chuck Schumer has helped to remind all of us of that.
Manchin already sold his soul to the devil by brokering a deal with Senate Majority Leader Chuck Schumer. The energy and tax policy is a $700 billion deal that most in DC had all but given up on. While the policy is being dubbed the Inflation Reduction Act of 2022, it is not something that we should celebrate just yet.
One of the reasons why the package hadn’t been passed sooner was because of the costs.
There will be a 15 percent corporate minimum tax imposed as a way to pay for this. It’s not what Manchin really wanted, but he is getting something else out of it – a pipeline in West Virginia. It’s part of the permits that Pelosi will be passing out within the policy.
Manchin reported that he feels that the only reason that this wasn’t a bipartisan bill is because of the political environment that is taking place and the uncertainty of the midterms. He did say, “We don’t know what the future will bring. But all indications, might be a little bit of a shake-up. And that changes the dynamics of getting something done.”
The 15 percent corporate tax is a big deal – and there may be a lot more that the government isn’t telling us.
Could we see our taxes being raised? And, is it possible that the corporate tax could result in fewer jobs and even more costs being passed to consumers? Absolutely. It’s all on the table.
The Inflation Reduction Act could absolutely be a financial nightmare, though the White House is saying that such talk is “incorrect.”
A report from the Joint Committee on Taxation (JCT) has already found that there would be a slight increase in tax rates for all income groups making less than $400,000 a year. Republicans were the ones to request the report. And, of course, it was important to point out that Biden promised not to raise taxes on this group.
When asked about the report, White House press secretary Karine Jean-Pierre dismissed it. She wouldn’t even discuss it, which shows that there are things that the White House would rather not share with us.
She only had one thing to say about it all. “The JCT report that we’re currently seeing is incomplete because it omits the actual benefits that Americans would receive when it comes to prescription drugs, when it comes to lowering energy costs like utility bills.”
That’s basically her way of saying that there will be tax increases. It makes no difference if people see savings on prescription drugs and energy costs. Those are different from tax increases. And what about the Americans who aren’t on prescription drugs and who already have low energy costs? The tax increase would absolutely affect them.
CBS News reported, “The report projected that the average tax rate for those earning less than $10,000 would increase from 7.3% under current law to 7.6%, and from 7.8% to 7.9% for those earning $30,000 to $40,000 2023. The tax rate would increase for a number of income categories in that year, according to the JCT.”
Great. Because things weren’t already getting expensive.