SoCal reps should reject HR 5376
HR 5376 still is called the Build Back Better Act on the U.S. Congress’ official website, Congress.gov. But President Biden has renamed it the Inflation Reduction Act conveniently just before the November election push.
According to an analysis by the majority Democrats in the Senate, it would “invest approximately $300 billion in deficit reduction and $369 billion in energy security and climate change programs over the next 10 years.”
But it would do that by raising taxes by $739 billion, slamming the economy just as it is dropping into recession. This would include grabbing $313 billion by imposing a 15% corporate minimum tax. But corporations don’t pay taxes, they only collect them from customers. They would have to raise prices, actually increasing inflation.
The Tax Foundation calculated this “is the most economically damaging provision in the bill, reducing GDP by
0.1 percent and costing about 23,000 jobs. The tax increase on carried interest also eliminates about 5,000 jobs.”
Another $124 billion supposedly would be raised through tax enforcement. In other words, pushing the IRS to go on fishing expeditions with their auditing powers. Tightening the thumbscrews on taxpayers also is a terrible idea at the beginning of a recession. Or anytime.
And not just corporations and the rich will pay higher taxes. A July 29 study by the nonpartisan Joint Committee on Taxation found those making from $20,000 to $100,000 in income would pay from 0.8% to 1.1% more in taxes. Even those making less than $10,000, the very bottom, would pay 3.1% more. How cruel.
Democrats have touted how their most moderate member, Sen. Joe Manchin of West Virginia, stopped obstructing the bill and now is supporting it. Well, Politico reported, “Clean energy manufacturing companies with plans to set up shop in Manchin’s state helped orchestrate the 13-day effort to change his mind,” according to more than 20 people it talked to. And that push “included a call from Bill Gates, whose venture capital firm has backed a West Virginia-based battery start-up.”
We urge Southern California House members to oppose this pork-stuffed monstrosity paid for by higher taxes on almost everybody.