Remember that time Joe Biden said he wouldn’t raise taxes on anyone making less than $400,000 a year?
Well, as it turns out, that’s not at all true.
The conservative group, Americans for Tax Reform, released a report on Thursday showing how taxes hidden in the misnamed Inflation Reduction Act will hit everyone, regardless of income level.
The new law contains provisions that will raise $6.5 billion in new taxes on natural gas, $12 billion on crude oil, and $1.2 billion on coal.
According to ATR, all of these taxes will drive up energy costs for all American households. As the group noted in its analysis, “Biden administration officials have repeatedly admitted taxes that raise consumer energy prices are in violation of President Biden’s $400,000 tax pledge.”
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But that is just the beginning.
The law also includes a $74 billion excise tax on corporate stock buybacks.
“Raising taxes and restricting stock buybacks harms the retirement savings of any individual with a 401(k), IRA or pension plan. Union retirement plans will also be hit,” ATR noted.
Among those affected by that provision are 60 million workers with 401(k) plans. You can bet that not all of them make $400,000 a year.
In one other example, ATR pointed out that Democrats imposed a 15% alternative minimum tax on U.S. businesses that report $1 billion or more in profits for the past three years.
“These American companies employ millions of Americans,” the group noted in its analysis. “The cost of this tax increase will be borne by working families in the form of higher prices, fewer jobs, and lower wages.”
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Overall, the Congressional Budget Office estimates this provision would increase taxes by more than $225 billion.
That will definitely not come from just those making $400,000 a year.
But Americans should not worry.
After all, Biden has “reduced” inflation from 9% earlier this year to 7%, a level last seen 40 years ago, and it’s just most, not all, economists who predict the U.S. economy will crash into a recession next year.
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