The House of Representatives passed the so-called $740 billion “Inflation Reduction Act on Friday, which will now go to President Joe Biden’s desk, where he is expected to sign it into law.
The bill largely focuses on subsidies for the green energy industry, price caps for some prescription drugs, giving Medicare the right to negotiate with producers, the raising of taxes on American families, and an increase of $80 billion to the budget of the Internal Revenue Service (IRS) which will be used to hire 87,000 more agents.
The “Inflation Reduction Act” passed the House with a vote of 220 in favor and 207 against. The vote was along party lines with 207 Republicans voting against, with 4 no votes, and 220 Democrats voting in favor.
Notably, more than a third of House members, 152 representatives, submitted letters to vote by proxy – a voting mechanism that has been allowed by Speaker Nancy Pelosi (D-CA).
The bill itself is set to raise taxes on all Americans, putting the most net tax burden on Americans making less than $200,000. Americans making less than $75,000 a year will pay $135.9 billion in additional taxes – 26.5 percent of the increase’s burden.
Americans making between $75,000 and $200,000 a year will pay 151.8 billion in additional taxes, approximately 29.6 percent of the burden. Those making between $200,000 and a million will pay 123.7 billion in net taxes or 24.1 percent and those making over a million dollars a year will pay $101.6 billion in additional taxes or 19.8 percent of the burden according to an analysis by The Heritage Foundation.
In addition to increased taxes, the bill also plans to expand the IRS’ budget by $80 billion leading to an expansion of the agency by 87,000 agents who will increase the auditing of middle-class Americans the most.
During the bill’s debate, Rep. Jason Smith (R-MI) presented the argument against the bill, “This week we found out inflation remains at a forty-year high having rising 13.7 percent since Biden became president. Real wages have decreased by 4 and a half percent. Americans are suffering. Are we here debating how to alleviate that suffering? No. We are here debating what Democrats call the “INFLATION REDUCTION ACT” which everyone from the congressional budget office to 230 different economists, even Senator Bernie Sanders says it will not actually reduce inflation.”
“When you strip away the fake sunset policies, this bill spends $745 billion and adds $146 billion to our debt. It adds $54 billion of debt just in the first five years and 80 percent of their budget deficits don’t begin until after the year 2029,” he explained, adding, “So lots of spending upfront, lots of debt up front and maybe savings 8 years from now? How is that going to put out the fire of inflation when the price of groceries is up 13.1 percent over the past year.”
The bill’s passage will bring about more economic pain for American families who are already struggling with 8.5 percent inflation. Democrats are actively working to undermine the American middle class and voters should remember that come November.
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