Lankford, other Republicans warn against tax increase – Oklahoma Council of Public Affairs
U.S. Sen. James Lankford and other Republican lawmakers warn that a proposed tax-and-spend package recently unveiled by Democrats, the “Inflation Reduction Act of 2022,” will hammer U.S. manufacturing and cause consumer prices to surge even amidst historic levels of inflation.
“It doesn’t lower inflation. It doesn’t lower the deficit,” said Lankford, R-Oklahoma City. “It does punish manufacturing—unless, by the way, you’re doing green energy. If you’re doing green energy, you’re protected. But if you’re producing nails, if you’re producing bolts, if you’re producing baby formula, if you’re producing car parts, if you’re producing lumber, your taxes are all going to go up. If anyone believes that all the prices of all those things—because their taxes go up—is not going to actually impact the consumer, you’re not looking at basic economics. Basic economics says when you tax something more, the price of it is going to go up.”
“Everybody in America knows that when taxes are charged, some people end up carrying the burden of those taxes,” said U.S. Sen. Mike Crapo, R-Idaho.
A summary of the “Inflation Reduction Act of 2022” shows the Democratic proposal will increase tax payments from businesses by $313 billion. It also shows that Democrats believe a significant increase in the size of the Internal Revenue Services (IRS) workforce will generate $124 billion through audits. The legislation calls for spending $369 billion on “Energy Security and Climate Change” and $64 billion on subsidies for those obtaining insurance through Affordable Care Act (“Obamacare”) exchanges.
Lankford and other GOP members of the U.S. Senate Committee on Finance said the bill rolls back important tax reforms enacted in 2017 that encouraged business investment in the United States and fueled strong economic growth during the Trump administration.
“Apparently, the best economy of our lifetime wasn’t a very good thing,” said U.S. Sen. Pat Toomey, R-Penn. “Apparently, narrowing the wage gap between the high-income and lower-income people wasn’t a very good thing. I have yet to hear a Democrat tell us what was wrong with the economy of 2019—that was firing on all cylinders, where wages were growing faster than inflation, not the other way around like we have today—and yet they’ve decided they’ll go after the centerpiece of the tax reform that made that possible.”
“Companies came back to the United States, invested the capital. We got the strongest economy that we have seen in, probably, all of our lifetimes. Employment was up. Wage increases were up. And the inflation rate was less than 2 percent, down around one-and-a-half percent. That’s what was coming out of the effort to get capital formation back into the United States,” Crapo said. “This bill is going to slam it.”
Republicans said the proposal also violates President Joe Biden’s promise, made repeatedly, that he would not support tax increases on anyone earning less than $400,000 annually.
Crapo noted that a Joint Committee on Taxation analysis concluded that the “Inflation Reduction Act of 2022” will, in its first year, increase by $16.7 billion the tax burden of Americans earning less than $200,000 annually.
Over 10 years, the analysis concluded the proposal would increase taxes “for nearly every income category” with half to two-thirds of the burden being placed on individuals and families with $400,000 in income or less.
Crapo said one …….