USAWorld News

Biden signs spending bill, says middle class won’t pay more taxes


President Biden signed the Cut Inflation Act into law on Tuesday, which spends $437 billion on environmental and health programs, and insisted the middle class would not pay “a penny more” in taxes – despite an independent analysis that says otherwise.

“I keep my campaign commitment. No one – let me stress this – no one earning less than $400,000 a year is going to pay a penny more in federal taxes,” Biden said before signing the legislation in the White House dining room.

The Congressional Budget Office, however, said an IRS crackdown authorized by the legislation would impact all taxpayers, with Americans earning less than $400,000 a year paying about $20 billion more in taxes until in fiscal year 2031.

President Biden signing the Cut Inflation Act during a ceremony at the White House on August 16, 2022.
AP Photo/Susan Walsh)
Biden claimed the bill would not require people earning less than $400,000 a year to pay a "penny more" in federal taxes.
Biden claimed the bill would not require people earning less than $400,000 a year to pay an “extra penny” in federal taxes.
AP Photo/Susan Walsh

Biden was supposed to wear a COVID-19 face mask at the event after first lady Jill Biden tested positive for the virus on Tuesday morning, but he didn’t when signing the bill surrounded by elderly congressional leaders such as Senate Majority Leader Chuck Schumer (D-NY), 71, and House Minority Whip Jim Clyburn (D-SC), 82.

The White House said Tuesday morning that Biden was supposed to hide for 10 days in and around others.

Biden also asked no questions at the event, including about last Monday’s FBI raid on his predecessor, Donald Trump – a story the president has yet to address directly in public remarks.

According to the Congressional Budget Office, the bill will force people earning less than $400,000 a year to pay $20 billion more in taxes through fiscal year 2031.
According to the Congressional Budget Office, the bill will force people earning less than $400,000 a year to pay $20 billion more in taxes through fiscal year 2031.
Photo by Drew Angerer/Getty Images

The IRS expansion funded by the new legislation is one of the most controversial elements of the package.

The White House insists the IRS will focus its crackdown on high-income earners. However, Republicans note that the IRS is an independent agency with a mandate to crack down on all tax evasion, with low-income targets easier to press.

The legislation is a sweeping political victory for Biden and Democrats and resurrected core elements of his long-running Build Back Better Act.

“The Cut Inflation Act does so much that for so many years so many of us fought to make it happen,” Biden said before signing it.

Centrist Sen. Joe Manchin (D-WV) relaunched the plan last month in the equally divided Senate, where it passed by a 50-50 vote under special budget reconciliation rules, with Vice President Kamala Harris breaking legality. The House also passed the bill along party lines.

“Joe, I never had any doubts,” Biden told Manchin during the bill-signing event.

Republicans and independent analysts say that despite its name, the bill will have little — if any — positive short-term effect on inflation, which this year soared to 41-year highs, with critics saying spending government officials were to blame.

Studies from the Penn Wharton Budget Model and the Tax Foundation indicate that the bill will not lower prices, at least not in the near future.

The 730-page bill commits $369 billion to environmental projects, $64 billion to expand more generous COVID-19-era Obamacare subsidies, and $4 billion to Western wildfire resilience.

It is expected to raise $222 billion through a new 15% minimum corporate tax, $124 billion in new IRS revenue through tougher enforcement after an $80 billion investment in staffing, $74 billion from a new 1% excise tax on stock buybacks and $52 billion by extending a limit on how companies can use losses to cut taxes — plus a projected savings of $265 billion by allowing Medicare to negotiate drug prices.

New York Post

Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.
Back to top button