While writing this article regarding the Inflation Reduction bill, I was faced with the dilemma of which side is actually correct. News channels seem to flip flop on their beliefs, making it ever harder to dive into.
Before we look at the bill, let’s take an inventory of where the United States and world energy market sit.
1: We are in an energy crisis with prices on double-digit percent price hikes.
2: Countries that printed money are now facing high inflation.
3: Fossil fuel usage is going up at breakneck speeds; look at power plants migrating back to oil or coal.
4: Oil companies are making the most profits in history and delivering dividends at record numbers.
5: The ESG investing movement has hit an iceberg as the reality of its risk has started to set in.
Now that the stage is set for “The Inflation Reduction Bill,” let’s dive into it a little. The Democrats Senate website has a summary of the bill that says:
“Every year, hardworking American families pay their taxes on time while wealthy millionaires and billionaires avoid paying the taxes they owe to the federal government. The IRS needs resources to tackle this challenge. Without these new investments, those at the top will be able to get away with more and more tax avoidance. That’s not fair to the tens of millions of honest, hardworking taxpayers who play by the rules. According to recent polling, nearly three-quarters of Americans believe the IRS should conduct more tax audits of large corporations and millionaires…”
“…FUNDING THE INTERNAL REVENUE SERVICE AND IMPROVING TAXPAYER COMPLIANCE This provision appropriates 10-year funding for the IRS as follows: • $3,181,500,000 for taxpayer services, • $45,637,400,000 for enforcement, • $25,326,400,000 for operations support, and • $4,750,700,000 for business systems modernization”…” These appropriated funds are to remain available until September 30, 2031, and no use of the funds is intended to increase taxes on any taxpayer with taxable income below $400,000″
I am becoming skeptical about the claims that Americans making under $400,000 won’t have a tax increase, and I’m not alone, as Fox and others are coming to the same solution. The key is that over 90% of the revenues they are targeting in the Inflation Reduction Act will come from the workers under the $200K mark. How does targeting the upper middle class and below not increase the taxes of those people?
The Bottom Line
I am sure we will have more information coming out from the analysts but what is clear is that this is not just for the rich; everyone is getting taxed. When the corporations get taxed, it will be passed on to consumers and will assist in elevating inflation even higher.
Giving large amounts of money to the IRS is wrong, and when they have an armory as extensive as several major agencies combined, it gets concerning.
The one thing constant throughout this entire discussion is that higher taxes are on the way for all Americans. Plan now.
Source: Kingoperating.com
