Posted on 08/03/2022 9:30:30 AM PDT by Heartlander
The details of the Democrats’ “Inflation Reduction Act” that Sen. Joe Manchin agreed to support are finally public, and one thing is clear: not since Peter Minuit handed over $24 worth of junk jewelry for Manhattan Island has anyone been so swindled. (I refer, of course, to Peter Minuit.)
I already told you that an analysis found the bill would actually raise inflation for a couple of years, then reduce it, for a net impact on inflation of zero. It will also raise taxes, add 80,000 IRS agents to beef up audits, and shower hundreds of billions of dollars on Democrat “Green New Deal” programs and cronies.
On the Sunday news shows, Manchin claimed the bill will reduce inflation while “not putting a burden on any taxpayers whatsoever.” That will be a neat trick, considering it increases tax revenues by $739 billion. That claim is based on one of the left’s favorite false narratives, that you can tax corporations and it won’t affect individuals. But corporations don’t pay taxes, they just collect them. The costs are passed along to customers in the form of higher prices, and to workers via fewer hires, lower pay, and reduced benefits.
Let me just point out to Sen. Manchin: you don’t have to be a sucker. You haven’t voted for this yet.
Fox News reports that the nonpartisan Congressional Joint Committee on Taxation estimates that “in 2023, the year in which the legislation would increase tax revenue most, individuals making less than $10,000 per year would pay 3.1% more in taxes and those making between $20,000-30,000 per year would see a 1.1% tax increase…Tax revenue collected from those making $100,000 per year or less would increase by $5.8 billion in 2023.”
And Republicans on the Senate Finance Committee reported that “by 2031, when the new energy credits and subsidies are set to provide an even greater benefit to wealthier Americans, those earning below $400,000 are projected to pay as much as two-thirds of the additional tax revenue collected that year.”
Manchin claims no taxpayers whatsoever will pay more, and Biden ran on a promise that if you made less than $200,000 a year, you wouldn’t pay a penny more in taxes. He also promised that his “Build Back Better” bill, of which this is the Omicron variant, wouldn’t raise taxes on anyone making less than $400,000. Not only will lower income taxpayers get hit by this bill, they especially will get hit by this bill.
Senate Finance Committee ranking member Mike Crapo said, “The more this bill is analyzed by impartial experts, the more we can see Democrats are trying to sell the American people a bill of goods. Nonpartisan analysts are confirming this bill raises taxes on the middle class and produces no meaningful deficit reduction…”
At this point, the only way to prevent this orgy of taxing and spending would be for Sen. Kyrsten Sinema to say no, or for Manchin to realize he’s been taken to the cleaners and back out of his commitment.
And if you’re wondering how Manchin was bilked into supporting this, Bonchie at RedState.com has details on that.
It seems he fell for one of the oldest tricks in the political racket: vague and unenforceable promises with the responsibility for fulfilling them falling on officials like Biden or radical greenie Energy Secretary Jennifer Granholm, who have no incentives, interest, or inclination to do what Manchin wants.
As Bonchie sums it up, the bill “delivers almost nothing of substance. I hope it was worth it for the West Virginia senator. He burned his credibility to the ground in order to please people who hate him, and all he’s getting are some empty, unenforceable promises. What a sucker.”
Let me just point out to Sen. Manchin: you don’t have to be a sucker. You haven’t voted for this yet. You can always claim you were lied to (or “bamboozled” is a nice word) and have changed your mind about signing on. Do as so many other Democrats have done and just “Walk Away.” Trust me, very few people will complain about not getting a big tax hike so the Democrats can blow more inflationary spending on their pet projects.
If you want to find out what a congressional bill will NOT do, take a gander at its title.
bttt
Every time I read about politicians not understanding what they voted for, or getting bamboozled as it were I laugh at the utter stupidity of the comment. To say or believe that Manchin didn’t understand or got swindled somehow is insulting, politicians are schemers and they know exactly what they are voting for.
Without even reading the details I can be assured that this bill is a disaster, but I wish pundits would stop peddling this nonsense when they analyze these things.
Corporations pass along the cost of many taxes to their customers, but when it comes to the corporate income tax this is flat-out wrong. This tax is collected on corporate profits, which are computed AFTER the company's revenues and expenses are established.
Nail on the head.
In other words, Manchin doesn’t know anything about what he is doing.
dems have been doing this to pubs forever
cant believe a dem fell for it
I'm stealing that...
The depression installation bill.
The depression installation bill.
im sure they have no idea what their results will be
not even an educated guess
all of those monthly budget v actual reports are just to keep the accountants busy
anyway they can adjust in the current year
what do you call a corporation that does not capture all their costs in their pricing model?
bankrupt
They know it’s too late to stop inflation, so really they are hoping to:
a) loot the public trough while the looting is still good
and
b) keep on pumping the spending so that even if we get horrible inflation the economy doesn’t slide into full on depression
Manchin was NOT bamboozled!
He got what he wanted!
He got the go-ahead on the Mountain Valley Pipeline!
There are already ads on local radio in WV seeking pipelne workers!
You are splitting hairs here. Corporations pay no taxes is true. Yes they technically cut a check after revenue and expenses are computed to use your language, but the corporate income tax is one of the items of expenses that is cooked into the prices charged when prices are set. Corporations don’t just set a price for goods and services and hope they make a few bucks with which to pay some of the profits in taxes. They calculate an estimated profit after expenses which includes the income tax they expect to pay.
So, they will increase prices to increase profits just to maintain the status quo.
This page has links to detailed webpages:
https://www.democrats.senate.gov/inflation-reduction-act-of-2022
And yes it is an “act”, reality will be different.
I wish the article matched the title. Where are the details of the bill?
2. Prices are set by the market, not by tax policy. If Ford pays $300 million in corporate taxes in the U.S. for 2022 and Toyota pays $0 for the same year because of one-time charges and other accounting gimmicks, do you think Ford can haphazardly price its cars higher than Toyota and expect to stay in business?
I have been running my own business for more than five years. Before that, I worked in senior corporate management roles where I prepared business plans with boring regularity. I can't remember a single instance where our anticipated corporate tax burden played any role in our business decisions.
https://www.mountainvalleypipeline.info/
Apparently from a map shown it will run to a pipeline system that runs NE towards DC.
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