Last week Sen. Joe Manchin and Majority Leader Chuck Schumer cut a deal to hike taxes and spending on the environment with the Inflation Reduction Act of 2022. The plan would spend $369 billion on energy and climate initiatives along with an additional $64 billion to continue federal health insurance subsidies.
Manchin says the bill would adopt tax policies that protect small businesses and working class Americans. Ashley Schapitl, spokesperson for the Senate Finance Chair Ron Wyden told Politico Americans “will not pay one penny in additional taxes under this bill.”
The Joint Committee on Taxation has found data that suggests the bill would increase tax rates on people earning under $400K. Schapitl argues the JCT analysis isn’t complete because “it doesn’t include the benefits to middle-class families of making health insurance premiums and prescription drugs more affordable. The same goes for clean energy incentives for families.”
Tony Katz says this isn’t only bad legislation, but it will only increase inflation.
“Joe Manchin is wrong here. I don’t know if he’ll recognize it because he doesn’t seem to want to admit that his plan is indeed increasing taxes. The reality is that it’s going to increase inflation, its not going to fight inflation because it is indeed more spending -and more spending is not a way to fight inflation.”
Sen. Kyrsten Sinema is the only Democrat who is undecided on the Manchin-Schumer bill. Sinema’s decision could make or break the legislation. If Sinema does cave to her Party, VP Harris would be the tiebreaking vote.
