Ranking Members News | newsroom

Ranking Members News |  newsroom

August 3, 2022

Americans in all income brackets would bear the burden of the increased taxes; the manufacturing sector would be the most affected

Washington, DC — U.S. Sen. Mike Crapo (R-Idaho), ranking member of the Senate Finance Committee, led a press conference with Finance Committee Republicans to highlight proposals to increase taxes on the mislabeled “Inflation Reduction Act.” Nonpartisan expert analyzes have shown that the legislation would increase the tax burden on low- and middle-income Americans; hit manufacturing; and do nothing to reduce inflation.

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

To see Crapo’s full statements, click HERE.

On who bears the burden of a tax hike:

“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 incidence of corporate tax affects workers; to equity, or stock owners, people trying to invest in their retirement in a pension plan or 401K; and in the increase in prices in the economy. “The
[Joint Committee on Taxation] found that by 2023, the tax burden would increase by $16.7 billion on Americans earning less than $200,000 a year. Another $14.1 billion would be borne by taxpayers making between $200,000 and $500,000 a year. Over the ten-year period, the average tax burden increases for almost all income categories. When you get to the point at the end of the ten-year period, between half and two-thirds of the burden falls on those earning less than $400,000. That’s the reality, regardless of the games being played in terms of describing who gets taxed.”

Which industries will be most affected by the tax hikes:

“49.7 percent of those taxes will fall on manufacturers, and as you can see from the chart that goes through several other aspects of our economy… This bill will affect manufacturers.” The National Association of Manufacturers has indicated that since half the impact of this will be in this industry, this would reduce our gross domestic product by $68.45 billion, reduce employment by 218 thousand workers, and reduce employment . revenue of $17 billion. These figures show, very graphically, where the burden of this tax falls; contrary to the argument that it is merely a tax on tax cheats.”

On the success of the Republican tax reform:

“We worked as hard as we could in 2017 to change our tax code to incentivize capital formation in the United States so that we could encourage the hundreds of billions and trillions of dollars that are held abroad by back to the United States. and invested here. And it happened: Businesses came back to the United States and invested capital. We have the strongest economy that we’ve probably seen in our entire lives. Employment increased, wages they went up and the inflation rate was under 2 percent, about 1.5 percent. That’s what resulted from the effort to bring capital formation back to the United States; this bill will turn it off.”

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About the Author: Chaz Cutler

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