The nonpartisan Joint Committee on Taxation (JCT) released an analysis last week outlining the upcoming tax and audit burdens set to hit middle-class Americans, after the Democrats’ so-called “Inflation Reduction Act” is passed by Congress — adding an additional 87,000 agents to The Internal Revenue Service (IRS).
The JCT estimates that 78 to 90 percent of the taxes raised via the increased auditing — coming from the $80 billion in additional IRS funding — would be derived from tax fliers making less than $200,000.
Meanwhile, only 4 to 9 percent of additional taxes would come from those making more than $500,000 a year.
The analysis, “presents a distribution of estimated tax assessments from representative random audits related to underreporting of Schedule C income.”
Welp, turns out Dems were lying to you about "no new audits."
New JCT estimates are out & turns out 78-90% of money raised from new auditing will come from tax filers reporting less than $200K.
— Mike Palicz (@Mike_Palicz) August 11, 2022
“The distribution below are grouped by reported adjusted gross income and therefore skew toward lower-income taxpayers relative to distributions done by true income (reported income plus unreported income),” a letter from the JCT read. “However, when audit adjustments are added to reported income, affected taxpayers tend to remain in the reported income group or move up only one income group.”
“The Administration has been very careful to say that the ‘individual income tax rate’ would not change for anyone making less than $400,000 per year, yet everyone knows that the corporate tax burden falls on workers and consumers, as well as owners,” said Senate Finance Committee Ranking Member Mike Crapo (R-Ind.), who requested the analysis.
He added, “This analysis shows that burdens of the proposed tax increases in the Democrats’ reckless bill would be so substantial and so widespread throughout all income categories that no amount of temporary health credits, or subsidies for $80,000 luxury SUVs, will overcome the tax increase burdens that would be overwhelmingly felt by lower -and middle-income Americans.”
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“By 2031, long after the expiration of temporary Obamacare tax credit subsidies: 71.1 percent of taxpayers earning between $20,000 and $30,000 will face the burden of a tax increase,” the ranking member explained in a press release. “81.4 percent of those earning between $75,000 to $100,000 will face a tax increase of more than $500.”
Another analysis conducted by the JCT, shows “that even when those subsidies are factored in, tax burdens from the Democrats’ bill on low- and middle-income Americans significantly outweigh any tax and ACA-premium benefits.”
“In the years following 2025, when the Obamacare subsidies sunset, JCT’s analysis shows that no taxpayers get a tax cut, with the vast majority of taxpayers bearing significant tax increases,” Crapo continued. “In 2031, for example, more than 70 percent of taxpayers earning between $20,000 and $30,000 are facing a tax increase.”
These JCT analyses come as the “Inflation Reduction Act” is currently being considered by the House of Representatives, after it passed the Senate on a party-line vote of 51 to 50 — with Vice President Kamala Harris (D) serving as the tie-breaking vote — in the evenly split Upper Congressional Chamber.
Democrats, as well as the commissioner of the IRS, have repeatedly claimed the increase in audits would not affect middle-class Americans and small businesses, however, evidence — and their own actions — say otherwise.
During the bill’s initial “Vote-arama” — which took place last week during the bill’s consideration in the Senate — an amendment was introduced to the bill by Crapo, which aimed at preventing, “the use of additional Internal Revenue Service Funds from being used for audits of taxpayers with taxable incomes below $400,000 in order to protect low- and middle-income earning American taxpayers from an onslaught of audits from an army of new Internal Revenue Service auditors funded by an unprecedented, nearly $80.000.000.000, infusion of new funds.”
The amendment also failed on a party-line vote with all 50 Democrats voting against it. Liberals will not keep their word and will say whatever they have to so they can get their agenda items — and their $740 billion bloated package — passed before President Joe Biden mindlessly signs it into law.
In a time when the United States is in a recession, Americans all over are struggling economically. While inflation is at 8.5 percent, Democrats have dared to ask for more hard-earned cash from the pockets of honest citizens, to cover their reckless spending.
All this, as IRS agents descend upon the middle class to suck out as much money as they can. Don’t forget to vote on Election Day in November. It’s less than three months away.
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