It’s been just over 48 hours since President Biden signed the Inflation Reduction Act (IRA) into law, and Republican pundits and lawmakers are already making it Target #1 in their efforts to take back Congress this November.
Despite the fact that the IRA is a fantastic piece of legislation that makes our climate, healthcare system, and tax code better, conservatives want the American people to fear it.
We’ve already talked about the conspiracy being pushed by conservatives claiming that Democrats will use the new funds from the IRA to arm tens of thousands of new IRS agents and set them loose on working Americans and small business owners. But the lies don’t stop there; they’re going after every piece of the bill and relying on how with big, complicated legislation like the IRA, it’s hard for ordinary Americans to discern fact from fiction.
The truth is simple – the only people who have to worry about the IRA negatively impacting them are ultra-rich corporate executives who have benefited from a too-lax system and wealthy criminal tax cheats who have utilized a deeply underfunded IRS to evade their responsibility to America and its people.
This week we’ll dive into some of the myths and facts about the Inflation Reduction Act and how it will impact the lives of the average American.
A 15% Minimum Corporate Tax Is No Economic Villain by Nir Kaissar
Many conservatives like to claim that raising taxes hurts the country’s economy, and they’re doubling down on that myth when it comes to the IRA’s 15% corporate minimum tax. But it’s simply not true. Over the last few decades, companies have seen their tax bills slashed while they continue to raise their prices, and there has been no correlation between corporate tax rates and inflation over the last 75 years. Even the claims that this will hurt corporate America are overblown. This new tax would impact only the most profitable companies, and even then, only those that have been abusing loopholes and credits to get away with paying virtually nothing. Any company that already pays its fair share won’t be taxed an additional cent.
Five Truths About How The Inflation Reduction Act Will Help Small Business And Working Families by Rhett Buttle
With all the disinformation swirling around over the IRA, it can be hard to pin down what is actually true, so this Forbes article compiles some clear-cut information you need to know about how the new law improves life for ordinary Americans. The IRA is geared exclusively to taxing the rich and lowering costs for ordinary people. It overwhelmingly benefits small businesses and working families through credits and investments, and no, the IRS will NOT be coming after lower and middle-class people. The IRA is great for America, and not for the ultra-rich who have been gaming the system for years.
Inflation Reduction Act: Biden’s new corporate tax hike won’t hurt most U.S. companies by Chelsey Cox
The people claiming that the new corporate minimum tax and excise tax on stock buybacks will devastate corporate earnings are either misinformed or dishonest (probably both). Most analysts predict that these “modest” taxes will have a minimal overall impact, and those companies that they will impact can clearly handle paying more. Once again, we want to point out that the 15% tax will only apply to companies who 1- make over $1 billion a year and 2- are paying virtually nothing in taxes already. This will level the playing field with the many, many companies that already pay over 15%. Additionally, the tax on stock buybacks will help disincentivize enriching executives and shareholders at the expense of consumers, workers, and productivity.
The Senate bill and Biden’s pledge to not raise taxes on people making less than $400,000 by Glenn Kessler
The right and former president Donald Trump keep insisting that Joe Biden’s IRA will raise taxes on the average American, but that’s just blatantly false. No one making under $400,000 will pay any higher taxes because of this bill. In fact, only the top 1.8% of Americans will be affected by any new taxes stemming from this legislation. Rather, the bill actually offers several new provisions that will help lower costs for everyday workers, like rebates and healthcare discounts. Don’t just take it from us – Marc Goldwein, Senior Vice President of the Committee for a Responsible Federal Budget, attested to the fact that the bill should “lower costs or taxes for all but the highest-wealth individuals.”