More On: Schumer-Manchin deal
The Schumer-Manchin deal raises taxes on people who make less than $400,000
Sens. Joe Manchin and Chuck Schumer's deal on energy and health care would raise taxes on millions of Americans making less than $400,000 a year, Senate Republicans say, citing data from groups with no political affiliation.
The Congressional Joint Committee on Taxation found that taxes on Americans making less than $200,000 would go up by $16.7 billion in 2023, and taxes on those making between $200,000 and $500,000 would go up by another $14.1 billion.
The Senate GOP said that, based on data from the joint committee, the average tax rate would go up for most income groups during the 10-year window. The release said that by 2031, new energy credits and subsidies would mean that people making less than $400,000 would pay as much as two-thirds of the extra tax money that year.
“Americans are already experiencing the consequences of Democrats’ reckless economic policies. The mislabeled ‘Inflation Reduction Act’ will do nothing to bring the economy out of stagnation and recession, but it will raise billions of dollars in taxes on Americans making less than $400,000,” said Sen. Mike Crapo, an Idaho Republican who sits on the Senate Finance Committee as a ranking member, and who requested the analysis.
“The more this bill is analyzed by impartial experts, the more we can see Democrats are trying to sell the American people a bill of goods,” Crapo added.
But Democrats don't agree with what the GOP is saying. According to Politico, a spokesperson for Senate Finance Chair Ron Wyden said that families "will not pay one penny more in taxes under this bill."
Ashley Schapitl, the spokesperson, also said that the JCT analysis isn't complete because it doesn't look at how making health insurance premiums and prescription drugs cheaper would help middle-class families. The same is true for incentives for families to use clean energy," Politico said.
The plan by Manchin and Schumer would spend $369 billion on energy and climate projects and an additional $64 billion to keep federal health insurance subsidies going.
The West Virginia Democrat and Senate Majority Leader from New York said that the bill would bring in $739 billion over ten years. Most of that money would come from a 15 percent minimum tax on corporations.
Manchin said that the bill "would put hundreds of billions of dollars toward reducing the deficit by adopting a tax policy that protects small businesses and working-class Americans while making sure that large corporations and the ultra-wealthy pay their fair share of taxes."
He told CNN on Sunday that the bill doesn't put any extra cost on taxpayers.
He said on "Meet the Press": "I agree with my Republican friends that we shouldn't raise taxes, and we didn't."
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