“Government has only three ways of getting money. It can raise taxes, borrow from the money market which drives up interest rates, or print money. All are inflationary.” – Ronald Reagan
It is as predictable as a drought in California that every progressive campaigning for any office will promise to increase taxes on the rich and spread the wealth around to identity groups and special interests. This age=old message works since it divides and conquers the classes. Promising voters gifts from the public treasury that will be paid for by the rich is chapter one in the liberal bible.
Talk show host Sean Hannity used to do a “man on the street” segment every Friday outside of FOX studios, in New York. His favorite topic to query passers-by was, how much do you believe is a “fair share” of taxes for the rich?” Answers were all over the map, from half to three quarters of their income.
Realistically, nothing “defines” what fair share is, since this is merely a progressive “talking point.” IRS data indicates that wealthy Americans bear the heaviest share of the income tax burden, while over 53 million middle-income and low-income taxpayers pay no income taxes after benefiting from record amounts of tax credits. These facts are contrary to plutocratic liberal opinion and agitprop.
Rahm Emanuel told us, “Never let a crisis go to waste.” Progressives depend on crisis governing so much, if they do not have a crisis in hand to expand government, they will always invent one.
“A crisis let’s you do so many things that you could never do before the crisis began.” – Rahm Emanuel
Since the progressives took over Washington, they have been looking for an excuse to raise taxes on the rich to gain support for their radical left agenda. Their proposals are so far left of American politics, voters and candidates have been running from them like they were infected with arsenic.
Last week, Senate Democrats took advantage of a crisis they created by renaming their “tax and spend wish list,” the “Inflation Reduction Act.” Democrats rammed their massive tax and spend bill through Congress, which has zero to do with inflation. Only a fool can’t see that the Democrats just re-branded their Build Back Better bill to “win back the voters” who blame them for 9.5% inflation.
The partisan measure was drafted behind closed doors and all efforts by Republicans to offer input into crafting the bill were rebuffed by Sen. Chuck Schumer and Vice President Kamala Harris. The bill was never shown to Republicans until it hit the floor and it was passed on a party-line vote decided in the Senate by Harris.
“We have to reduce dependence on things that have caused us the most inflation.” – Kamala Harris
The bill allocates $1.75 trillion to finance strictly Democratic priorities, from health care subsidies to those using more green energy. It enables government to negotiate drug prices for Medicare and gives payments to low income families. Above all the bill contains many climate calamity gimmicks.
The bill ambiguously allocates over $385 billion toward combating so-called climate change with a myriad of questionable technologies, including credits for investing in green energy projects and products with no predictable long-term savings over fossil fuels. There are credits for buying battery-powered cars and investing in green energy plants and the development of better green products.
The bill supposedly dangles carrots for industry to produce more renewable energy products and incentives for households to transform their energy use and consumption to more green products. Democrats say this will have an immediate affect in reducing higher energy prices for consumers.
This bill puts a cap on out-of-pocket costs of drugs for Medicare D patients, but that cost will be passed on to those who are enrolled in Advantage plans as well as the rest of Americans. This bill simply cuts the prices for some consumers and raises the prices for others just like Obamacare.
“You’ll see no changes in your health-care under our plan except lower premiums.” -Barack Obama
Like Obamacare, once the bill was passed and everybody read it, they found out that the devil is in the details. Democrats say the cost of all these new incentives to invest in green energy production and use, an increase in social programs, and other federal investments will be paid for by increased taxes on corporations. It includes a huge increase in IRS funding to audit businesses.
Democrats worked in lockstep with Biden to renege on Biden’s pledge not to raise taxes on Americans making less than $400,000. According to economist Mark Zandi, Biden’s $433 billion Inflation Reduction Act will have no meaningful impact on consumer costs. By the end of 2031, the Inflation Reduction Act will shave less than 0.3% from consumer prices using today’s numbers.
And there are a few other issues the Democrats failed to mention. The Joint Committee on Taxation (JCT) and the Congressional Budget Office (CBO) told Biden and the Democrats that at least half of the IRA tax burden will be borne by Americans making less than $400,000, and $17 billion in new taxes will fall on those earning less than $200,000. Yet the Democrats passed it anyway.
“As I promised, the cost of the Inflation Reduction Act will be paid for by big businesses.” – Joe Biden
University of Pennsylvania economists reported that the “Inflation Reduction Act” will do nothing to cut inflation and it will actually increase inflation in the long term. One budget expert said, “Nobody working on this study has confidence that this legislation will have any impact on cutting inflation.”
The JCT found that domestic manufacturers will bear the largest portion of the tax burden from a 15% minimum tax on income. This will drive up prices and further damage the supply chain. The CBO predicts that this will also discourage future business startups and small business investors.
Increased funding for the IRS does more than just give the IRS more agents to audit corporations. Over 50% of this IRS spending funds additional tax auditing of those who itemize deductions.
Stephen Forbes told us, “Businesses don’t pay taxes, their customers do.” Since large corporations pass on their costs of doing business to their customers, this bill will do nothing to lower the cost of living or inflation for the average consumer. In fact, it will hurt them. The Democrats’ inflation act relies on budget gimmicks and false prophecies to hide the true cost of its inflationary spending.
Americans are suffering under Biden. Their paychecks are getting smaller while prices for everything are surging. They need relief, but that’s not a priority for Biden and the Democrats.
It’s all about them, not us. This is just a smoke screen for more spending by the left.
“It’s a popular delusion the government wastes vast amounts of money through inefficiency and sloth. Contrarily, enormous effort and elaborate planning are required to waste this much money.” – P.J. O’Rourke