Karine Jean-Pierre, the White House communications secretary, criticized Republicans for spreading misinformation about the Inflation Reduction Act (IRA) of 2022.
The Republicans have unmasked the IRA.
Every American will pay more in taxes, but the White House continues to ignore the plight of its citizens while blaming the Republican Party for trying to derail the new law’s effectiveness.
Jean-Pierre referred to Republican statements as “blatant falsehoods.” She implied that the party was only interested in safeguarding the interests of the wealthy at the expense of those of everyone else.
In a news conference, President Biden reaffirmed his earlier commitment that individuals with annual incomes less than $400,000 will see no increase in their tax liability due to the IRA.
Jean-Pierre said that Republican senators are eager to defend the wealthy firms that earn over $1 billion a year yet pay no taxes.
The White House claims the IRA will only tax the wealthy, but several nonpartisan platforms have debunked this. According to the bipartisan Joint Committee on Taxation (JCT), the bill will affect every American somehow.
Some in JCT have even gone so far as to say that the minimum corporate tax will cause companies to pass the cost of the increase on to consumers in the form of higher pricing.
Similarly, the minimum wage will likely be lowered if businesses battle to keep their profits up.
The JCT predicted that taxpayers with incomes between $0 and $30,000 would see no increase in their direct tax burden. However, the JCT also noted that employers in this income range would be expected to increase their contributions to health insurance and other Medicare benefits.
This means everyone in the United States will be indirectly taxed extra under the contentious IRA.
The income tax rate for those whose annual income is between $75,000 and $100,000 will increase significantly, from 15.8% to 16%. People with incomes between $100,000 and $500,000 will see a similar 0.3% rise in their average tax rate.
The JCT’s evaluation has led to criticism from Republicans who oppose raising taxes when middle-class Americans are already struggling under the weight of rising inflation.
The RNC’s spokesman, Tommy Pigott, said the Democrats are “out of touch” for passing a partisan bill through the US Senate that will raise taxes on the middle class and cause inflation to rise for all Americans.
Piggott made a similar point, claiming the law’s passage would suffocate the economy during downturns even as it gave the IRS more authority to enforce tax regulations.
In addition, RNC chairwoman Ronna McDaniel said that Americans would hold Democrats accountable for tax increases across the board in the upcoming midterm elections.
