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Democrats Unveil Plan to Raise Taxes As Economy Slips Into Recession

AMAC Exclusive – By Shane Harris

recession
Photo Credits: The Associated Press

In news that sent shockwaves through the political world, Senate Majority Leader Chuck Schumer and West Virginia Democrat Joe Manchin announced late Wednesday evening that they had reached an agreement on a sweeping reconciliation package, suddenly reviving large portions of President Joe Biden’s “Build Back Better” agenda. Revealed just hours before Q2 GDP data showed Thursday that the U.S. economy is indeed in a recession (despite a desperate scramble by the Biden administration to redefine the term), the new framework increases the tax burden on Americans by hundreds of billions of dollars, likely worsening the nation’s economic outlook – and perhaps sealing Democrats’ electoral fate in the process.

After Manchin killed Joe Biden’s $3.5 trillion “Build Back Better” bill last year, the West Virginia Democrat had repeatedly quashed talk of a “comeback” for Biden’s signature domestic spending plan, insisting that “there’s not a Build Back Better revival.” Conventional wisdom in Washington held that Manchin, Schumer, and Biden would agree to a far narrower package centered on lowering prescription drug costs and expanding Obamacare subsidies. But in a surprise move, Manchin signaled his approval of a far more extensive package officially titled the “Inflation Reduction Act of 2022.”

The largest spending category in the legislation by far is “energy security and climate change,” coming in at $369 billion. The bill promises to reduce carbon emissions by 40% by 2030, provide subsidies and tax breaks for electric vehicles, and more rigorously enforce environmental regulations – all major provisions of the original Build Back Better Act.

The “trade-off” here, according to Democrats and Manchin specifically, is that the bill supposedly makes investments in domestic energy production, including fossil fuels. But exactly what those investments are is unclear. The legislation does call for “comprehensive Permitting reform legislation to be passed before the end of the fiscal year,” but fails to specify what such reform would look like, or how it would increase domestic energy production. Moreover, with a four-seat Democrat margin in the House, it seems a virtual certainty that the Congressional Progressive Caucus would have the votes to kill legislation perceived as benefitting oil, gas, and coal companies, even if Schumer can keep every Senate Democrat in line.

Of primary concern for most Americans, however, should be the bill’s tax provisions.

A one-page summary of the legislation claims that it includes “no new taxes on families making $400,000 or less and no new taxes on small businesses.” That may be technically true – but as is so often the case with liberal legislation, the devil is in the details. Instead of introducing new taxes, the bill promises to raise hundreds of billions of dollars in revenue (taxes) by “closing loopholes” and “enforcing the tax code.” In other words, while millions of Americans won’t be paying any “new” taxes, the amount that they actually fork over to the federal government at the end of each year will be higher. Democrats believe, for example, they can raise $124 billion solely from “IRS tax enforcement” – government speak for targeting businesses with audits.

The new taxes that the bill imposes on businesses and wealthy individuals – most notably a 15% corporate minimum tax on large companies – are also likely to kill jobs and hamper economic growth. While Schumer and Manchin are hiding behind the now-familiar Democrat talking point of making everyone “pay their fair share,” that sentiment won’t change the fact that when businesses are taxed more, they will cut jobs, particularly with the country entering a recession.

With Schumer aiming for a vote on the bill next week using the budget reconciliation process (which allows Democrats to pass legislation with a simple majority rather than the normal 60 votes) there is little Republicans can do to stop it. Although conservatives have quickly slammed the plan, the announcement appears to have caught GOP leadership largely off guard. Senate Minority Leader Mitch McConnell had pledged just weeks ago that Republicans would not help Democrats pass a substantial semiconductor manufacturing bill “as long as Democrats are pursuing a partisan reconciliation bill.” But just hours after 17 Senate Republicans voted with Democrats to pass that legislation on Wednesday, the Inflation Reduction Act was officially introduced.

Nonetheless, passing this legislation would still be a great risk for Democrats. Regardless of how they try and spin it, the bill will increase the tax burden on millions of Americans in the middle of a recession and just months before an election. When Republican President Herbert Hoover made a similar move nearly a century ago by signing the Revenue Act of 1932, it deepened the Great Depression and ushered in two decades of uninterrupted Democrat control of Washington. Now, Joe Biden, Joe Manchin, and the rest of the Democratic Party appear poised to make a similar mistake.

Shane Harris is a writer and political consultant from Southwest Ohio. You can follow him on Twitter @Shane_Harris_


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Dr Rene
1 month ago

The Democrats Schumer-Manchin Inflation Reduction (actually expansion) Act gives US FARMERS $20,000,000,000 ($20B) to ‘NOT GROW BADLY NEEDED CROPS’. If farmers take this monies, then they deserve no sympathy when Democrats back stabs them later.

Especially, since the US is Agriculturally independent when US farmers are allowed to grow crops like past decades.

Tom
1 month ago

Good idea think about it. Tax the people you want to destroy useing their money to work against the tax payers. Poor , hungry,, unarmed people are no problem,no up rises and they can put who they deemed into work camps . Any objectors are enemies of the state . Buy guns and ammo. The Jews thought thought the Warsaw he thought would never happen. Met survivor who spoke of exactly what the Dems are doing

BAE
1 month ago

OMG. Look at the condition of our cities; how could anyone think the politicians are concerned about American taxpayers. Our big cities are falling apart.

Dr Rene
1 month ago

Sen Lee is clearly referencing this years 129% ACA increase. In the meantime, Disabled Veterans can’t make a timely VAMC combat related medical injury appointment. However, ABORTION appointments are a priority medical condition for China-Joe & DEMOCRATS.

DEMOCRATS ARE TRULY DISCUSTING.

BAE
1 month ago
Reply to  Dr Rene

Their priorities are for the fringe groups. Never for hard working Americans. Hard working, tax paying; the forgotten people. DISGUSTING!

Garye
1 month ago
Reply to  Dr Rene

Yes, the marxist democrat party is disgusting group of self serving,lying anti American traitors!
THROW THEM OUT

BobA
1 month ago

They must think that this will fire up their base before the mid-terms. Got news for them, it’s only going to make them madder and fire up the conservatives. So you get a few jobs for WV but hurt the entire country.

Michael J
1 month ago

Politicians are idiots who cannot or will not stop spending money they don’t have. Their job is to use our taxes to manage OUR country’s needs, not running it into bankruptcy. These vipers are as cunning as any criminal entity and they are empowered to get away with it.

PaulE
1 month ago
Reply to  Michael J

They are NOT cunning or even particulary inventive in their actions. They just keep running the exact tactical plays over and over again, right in front of the American public. The Republican politicians are either too dumb to notice the obvious the play ahead of time or they hinestly just don’t really care at the end of the day. It’s a coin toss and frankly it doesn’t really matter which one it is. All that matters is the Democrats keep advancing their socialist agenda and nothing is ever done about it.

As for the American people, we’ve seen this Democrat tactic pulled literally hundreds of times over the last 50 years by congressional Democrats. The only thing that has ever changed is the names of the players involved and that is completely unimportant. Yet the vast majority of the American public is shocked,shocked every single time that the Democrats lie or obfuscate to get what they want. All while the United States moves steadily towards a socialist future.

Sam
1 month ago

What is worse, do you suppose? “Tax and Spend” Democrats, or “Tax and Spend” Republicans? ‘Tis hard for ME to tell the difference.

PaulE
1 month ago
Reply to  Sam

There is no difference, which was the point of your remark.

Clark Kent
1 month ago

‘When you find yourself in a hole, quit digging’ – Will Rogers.

DanM
1 month ago

This is what you call doubling down on stupid. That IS if the people finally wake up and vote. That IS if elections are honest.

Clark Kent
1 month ago
Reply to  DanM

The Dumbocrat fall fraud fest is coming soon to a ballot box near you.

Mike L
1 month ago
Reply to  DanM

This is proof democrats are counting there votes (for re-election) before they are cast.
But then, democrats could always add/subtract votes as needed to stay in office.

heil biden
1 month ago

WELCOME TO THE FOURTH REICH

Theresa Coughlin
1 month ago

Inflation Reduction Act of 2022? BALONEY! Just like every other monstrosity passed by democrats in Congress (the community reinvestment act of 2009 and the Affordable Care Act are just two examples of this), this bill will NOT do what Congress says it will. This bill will make inflation worse because whatever costs corporations won’t be able to lower by cutting jobs will be passed down to the consumers in the form of higher prices than we’re currently paying. As for the claim that this bill will force the wealthy to “pay their fair share”, what exactly does Congress consider the wealthy’s “fair share” to be? The tax hikes in this bill could not come at a worse time because (despite the denials of the Biden administration), this country has just entered into a recession. The democrats used to say that you don’t raise taxes during a recession and this bill does exactly that. The so-called “investments” in clean energy that this bill provides for will only result in even higher energy costs than we currently have at a time when we can least afford them. This bill, in addition to being a tax and spend monstrosity, which is bad enough, is also a green new deal boondoggle which rips off this country’s taxpayers.

Robin Boyd
1 month ago

There is no need to continue redistributing the tax dollars of working American citizens to those who are not contributing to society. What we need is to greatly reduce how much an over bloated government spends and reduce its size.

BAE
1 month ago
Reply to  Robin Boyd

Government should be sized down. What do all those government workers do? So many departments to close. They waste our tax dollars! What do we get for our hard earned $$$?

Ell Jay
1 month ago

Joe Manchin exact word in 2010:”I don’t think during a time of recession you mess with any of the taxes or increase any taxes.”
He’s a traitor all right, not just to the hard working people of West Virginia, but to the entire nation. How much was he paid for his vote, and what about Sinema.

BAE
1 month ago
Reply to  Ell Jay

Just another politician out for himself (liar)!

Nick Patriot
1 month ago
Reply to  Ell Jay

My mom used to tell me, ” a leopard don’t change his spots.”

Rich
1 month ago

My only question is, why can’t the so called educated die hard democrats see that their party is deliberately destroying America? How can they think that this will be a benefit to us or the world. I know about the one-world system that is coming, but the supporters of the “new world order” won’t like what they get and our nation will be no more.

edward
1 month ago
Reply to  Rich

because they(communists) are sooooo close to their ultimate goal of TOTAL DOMINATION and they know time is running out that they are pushing hell bent for leather to complete their takeover before 2024.

Howard MacKinnon
1 month ago

My question is who do the ocare subsidies benefit? Americans or illegals?

Robert Zuccaro
1 month ago

Republicans are surprised? Why? Manchin is a DEMOCRAT… What’s to trust? Its the old joke: “how do you know a Democrat is lying? Their lips are moving…”

Tillie
1 month ago

There goes our energy bills!

dkp2015
1 month ago

One thing about these scumbag dems/libs – they are very creative!!! brandon said no new taxes but then it caused the price of everything to skyrocket which is just as good as a tax increase. Now the idiots are going to raise corporate taxes. Someone please explain to these morons, corporations do not pay taxes!!! They simply pass the tax off as a tax increase on everyone!!!!!

Rich
1 month ago
Reply to  dkp2015

And the businesses that don’t survive the recession will not be there to pay the higher taxes.

edward
1 month ago
Reply to  dkp2015

“corporations do not pay taxes” yes but they tell the “useful idiots” how they are raising taxes on evil corporations! “useful idiots” dont understand basic economics.

Mike L
1 month ago
Reply to  edward

Because “useful idiots” can’t think, they make perfect vote fodder for democrats. A useful idiot is like a zombie, does what ever it is told, like vote for jackasses (democrats).

John A Bird
1 month ago

I was censored by AMAC yesterday, so we are unable to truthfully speak about our corrupt nation and what a Patriot should do to stop this nonsense.

Clark Kent
1 month ago
Reply to  John A Bird

Who, specifically, is ‘we’?

RobertM
1 month ago

When they whisper and turn their back on us… LOOK OUT!!

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