Report: Biden’s Inflation Reduction Act will send the IRS after the middle-class

Joe Biden says that those making under $400,000 won’t see a penny more in taxes if his crudely titled Inflation Reduction Act becomes law, but the lofty promise seems to be just more hot air from the bully pulpit.

According to the non-partisan Joint Committee on Taxation, $80 billion in new funding for the IRS will end up mostly targeting middle-class business owners, the New York Post reported.

Biden sending the IRS after middle class

Biden says the IRS money will go toward targeting wealthy tax dodgers to ensure they “pay their fair share.” But the Joint Committee on Taxation found that 78 to 90 percent of taxes from under-reported income would come from small businesses earning less than $200,000 a year.

“We’ve seen this play out before … the IRS says ‘We’re going after the rich’ but when you’re trying to raise that much money, the rich can only get you so far,” Joe Hinchman, executive vice president at National Taxpayers Union Foundation, told The Post.

In an editorial, the Wall Street Journal similarly called out Biden’s IRS gambit as a bait-and-switch. The Democratic party’s goal of raising $200 billion through IRS enforcement isn’t feasible without targeting millions of middle-class people, the Journal noted.

“The main targets will by necessity be the middle- and upper-middle class because that’s where the money is,” the WSJ’s editorial board wrote.

The wealthy can afford expensive lawyers to fight the tax man, the paper noted, adding that most of those audited would be “small businesses that will settle with the IRS rather than fight and endure years of costly litigation.”

More misleading boasts from Biden

The IRS’s new budget of $80 billion would be “more than six times the current annual IRS budget of $12.6 billion,” the paper noted.

It’s also far from clear that the Inflation Reduction Act, a slimmed-down version of Biden’s Build Back Better plan, will actually reduce inflation. Biden says that “economists” agree that it will, but there does not seem to be a consensus on the matter.

Over 230 economists signed a letter to Congress predicting that the “inaptly named ‘Inflation Reduction Act of 2022’ would do nothing of the sort and instead would perpetuate the same fiscal policy errors that have helped precipitate the current troubling economic climate.”

It doesn’t take an economist to see that billions more in spending likely wouldn’t reduce inflation. And of course, inflation is another tax on the middle class.

But according to Biden, “not a single American in the middle class will pay higher taxes” to pay for his bill. He added for emphasis, “It’s that simple.” We will just have to see.

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