The Congressional Budget Office voiced misgivings about the newly passed Anti-Inflation Bill based on the economic policies of Joe Biden will bode ill for Americans. One claim is that the act is faulty and impacts tax-paying Americans with a billion-dollar tax cost when the economy is in a recession.
New Act Similar to Build Back Better
The Inflation Reduction Act, signed into law by US President Joe Biden on Tuesday, will impose an additional $20 billion in taxes on middle-class Americans over the next decade, according to the Congressional Budget Office, reported RT.
It will cost taxpayers earning less than $200,000 more than $16.7 billion, but those earning $500,000 or more will pay more than $14.1 billion in taxes, according to the Congressional Joint Committee on Taxation. Wealthy Americans will be compelled to pay an additional $180 billion for the Democratic agenda.
It must be remembered that Joe Biden swore not to raise taxes during the last election, especially the middle class which Donald Trump warned that his then opponent would do.
The Senate rejected an amendment to the plan that would have shielded Americans earning less than $400,000 from enhanced IRS inspection. The House passed the Inflation Reduction Act on Friday; it was approved by both chambers of Congress along party lines, without any Republican support, noted USA Today.
Anti-Inflation Bill
This new legislation will cost $80 billion to hire 87,000 IRS agents to collect those new taxes. The Biden White House has framed it as a measure to make the wealthy pay their due share.
The budget office is not too keen on the newly Passed Anti-Inflation bill, calling it a magnet to more economic woes and not a solid solution.
According to CBO's assessment and the Joint Committee on Taxation, the new agents will mostly be responsible for extracting revenue from small company owners and middle-class Americans, citing the Press United.
However, Treasury Secretary Janet Yellen warned the IRS commissioner last week that "any extra resources not be used to increase the number of small enterprises or households inspected below the $400,000 threshold compared to previous levels."
The IRS now employs approximately 78,000 workers, so that the new hires could double the agency's size. The Treasury Department, on the other hand, says that many of the new appointments are intended to replace staff who are about to retire and that the agency's ranks would only rise by 30,000.
One IRS job advertisement stated that agents would carry a pistol and be prepared to use lethal action when necessary. That raised eyebrows across the internet. It was then edited to remove the references to "deadly force," but screenshots of the original may still be seen on social media.
Joe Biden, whose mismanagement of the economy has brought in a crippling recession after 40 years, that is 8.6% in May, denies it vehemently. The president uses the scapegoats like coining the Putin Price Hike and the pandemic for the financial hardship caused by his faulty economic policy.
The GOP emphasized his excessive spending as the cause of inflation and high gas prices, with a recession serving as the cherry on top of Bidenomics.
Failed to pass the Build Back Better reviled by everyone and ended up a poor failure, not it is clothed as the newly passed bill that the Democrats want desperately.
The Congressional Budget Office called the newly passed Anti-Inflation Bill not the answer to economic woes that will be compounded.