Ranking Members News | newsroom

Ranking Members News |  newsroom

August 3, 2022

The legislation will result in a higher tax burden, fewer jobs, lower wages and continued economic stagnation

Washington, DC–Against a backdrop of high inflation, shrinking GDP and stagflation, Democrats are moving forward with a bill that does nothing to address inflation; it won’t grow the economy or ease supply chain pressures; but it will increase the tax burden on millions of Americans. Republicans on the U.S. Senate Finance Committee, led by Ranking Member Mike Crapo (R-Idaho), held a press conference to emphasize why the latest tax-and-spending bill will do nothing to help Americans who are already suffering the consequences of the Democrats’ economic recklessness. policies

To view the entire press conference, click here.

Senator Mike Crapo (R-Idaho):

“The bottom line: This tax is dangerous for America.

The Administration has been very careful to say “we’re not going to raise anyone’s tax rates below $400,000.” But everyone in America knows that when taxes are levied, people end up bearing the burden of those taxes. This burden comes because the impact of corporate tax is passed on to workers; to equity, or stock owners and people trying to invest in their retirement, pension plan or 401K; and in the increase in prices in the economy. . . . This is the reality, regardless of the games being played in terms of describing who gets taxed. . . . The figures show, very graphically, where the burden of this tax falls, contrary to the argument that it is only a tax on tax cheats. Ultimately, this tax is dangerous for the United States.

Senator Pat Toomey (R-Pennsylvania):

“They will absolutely devastate American manufacturing.”

Apparently, the best economy of our lifetime was not very good; apparently closing the wage gap between higher earners and lower earners didn’t do much good. I have yet to hear a Democrat tell us what was wrong with the 2019 economy that was firing on all cylinders, where wages were growing faster than inflation, not the other way around like we have today. However, they have decided to go after the centerpiece of the tax reform that made it possible. They will absolutely devastate American manufacturing and, in the process, impose this tax increase on people of ordinary and modest means. It’s a very bad plan.

Sen. Rob Portman (R-Ohio):

“This puts us at a competitive disadvantage with countries around the world.”

We just spent a few hundred billion dollars in research and development to help who? manufacturers To help ensure that the United States can be competitive in a global economy. So, on the one hand, we say to the manufacturers: “We want to help you be more competitive.” On the other hand, we are saying ‘We will get one of the benefits that encourages investment and economic growth’. By the way, we are not alone in this: every other developed country in the world also offers some kind of bonus. In fact, of the most important developed countries in the world, we are already below the average: we offer less than them. So this also puts us at a competitive disadvantage with countries around the world. It’s the wrong thing to do at the wrong time.

Senator Chuck Grassley (R-Iowa):

“Completely inconsistent in so many areas of what the Democrats have said they want us to get this Congress.”

Consider the incoherence of the Democrats who are always complaining about wealth and the lack of taxes on the very rich. And then you’re giving huge bonuses to people who can afford to buy $80,000 [electric] cars, which is improving the pockets of the one percent who complain they don’t pay their “fair share” of taxes. So this is not only bad policy, but it’s completely inconsistent in so many areas of what the Democrats have said they want us to get this Congress.

Senator John Barrasso (R-Wyoming):

“We should be doing things to reduce inflation and reduce its impact on American families. This is not it.”

This legislation ignores the main concerns of the American people: the crisis at the border, the crushing inflation people are experiencing, crime in the cities… That’s why two-thirds of Americans say this administration and the Democrats are focused on evil. thing We should do things to reduce inflation and reduce its impact on American families. This is not that.

Senator John Thune (R-South Dakota):

“$80 billion to allow the IRS to harass businesses in this country.”

The Democrats’ bill significantly increases funding for the IRS: $80 billion for 87,000 new employees. Think about it: It literally doubles the size of the IRS. Because? Not to improve services to taxpayers, only four percent goes to improving service to taxpayers. This allows the IRS to harass businesses in that country. Also shown by the analysis that has been done, it disproportionately affects individuals and businesses making less than $400,000 a year.

Senator James Lankford (R-Oklahoma):

“Core Economy: When you record something else, the price goes up.”

At the exact time when we have supply chain issues, when we’re having more and more challenges with our manufacturing, and when we’re trying to incentivize more manufacturing in the United States, they’re raising taxes on manufacturing in the United States. So it doesn’t reduce inflation, it doesn’t reduce the deficit, it does punish manufacturing, unless you do green energy. If you make green energy, you are protected. Basic economics says that when you tax something more, the price will go up. They are taxing the manufacturing industry more, especially the American one, more, prices will go up, which will increase inflation, that is basic.

Sen. Todd Young (R-Indiana):

“This is an anti-Indiana bill.”

The median household income in the state of Indiana is $58,000. Under this plan, families in this income bracket in my state will see their taxes increase by $2 billion in the next year alone. I am here for these families. I speak on behalf of these families. They are upset. They find this absolutely absurd. We are the most manufacturing intensive state in the country. As we have already heard, this legislation will affect our manufacturers. This is an anti-Indiana bill.


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About the Author: Chaz Cutler

My name is Chasity. I love to follow the stock market and financial news!