The “Inflation Reduction Act,” which passed the U.S. Senate on Sunday, is set to pass the U.S. House tomorrow, and the final version will not contain guarantees that those making under $400,000 per year will avoid any resulting new taxes.
Rep. Ted Budd, R-13th District, who is also running in North Carolina’s 2022 U.S. Senate race, and Rep. Greg Murphy, R-3rd District, each proposed an amendment on Aug. 10 that would limit any new taxation to those making over $400,000. But each amendment was rejected by House Democrats and failed to make it into the final bill.
“Contrary to the claims of Congressional Democrats, the massive IRS funding increase will have a catastrophic effect on America’s small businesses and those who don’t have the money to afford high-priced tax attorneys,” Budd said in a statement provided to Carolina Journal before the vote on his amendment. “Working families should not be treated like tax cheats, and my amendment will ensure that they are protected.”
The language of Budd’s amendment can be read below:
Murphy provided comment to Carolina Journal on his amendment as well:
“Our proposed amendments gave House Democrats the opportunity to deliver on the White House’s promise not to target low-and-middle income earners by blocking those making under $400,000 from new audits. They failed. We know for a fact that the mislabeled Inflation Reduction Act WILL raise the tax burden on those making under $400,00 in taxable income. Under this bill, the IRS will go after middle class families and businesses to get their return on investment. By rejecting our amendments to protect taxpayers, Democrats are giving the IRS the green light to squeeze even more taxes from struggling Americans to fund their massive spending agenda.”
The issue became a point of debate after apparent conflict between analysis of the bill and statements by top Democrats.
“This bill will not raise taxes on anyone making less than $400,000 a year,” President Joe Biden said during remarks on the $433 billion Inflation Reduction Act. “And I promise — a promise I made during the campaign and one … that I have kept.”
But Republicans have pushed back on these assertions, saying analysis by the nonpartisan Joint Committee on Taxation shows that there will be major tax increases as a result of this bill, including $16.7 billion on Americans making less than $200,000.
U.S. Senate Finance Committee Ranking Member Mike Crapo, R-Idaho, proposed a similar amendment to those of Budd and Murphy. His was also rejected before the bill passed the Senate, with all 50 Democrats voting against it.
“Americans are already experiencing the consequences of Democrats’ reckless economic policies,” Crapo said. “The mislabeled ‘Inflation Reduction Act’ will do nothing to bring the economy out of stagnation and recession, but it will raise billions of dollars in taxes on Americans making less than $400,000.”
A final vote on the Inflation Reduction Act is planned by the end of the week, according to statements by House Speaker Nancy Pelosi, then the bill will head to Biden’s desk where he is expected to sign it into law.