A reconciliation bill pushed by Senate Democrats aims to reduce the deficit by $300 billion by increasing taxes and IRS enforcement while spending $433 billion on “climate change” and Obamacare.
Senate Majority Leader Chuck Schumer (D-NY) and Sen. Joe Manchin (D-WV) on Wednesday unveiled the Inflation Reduction Act of 2022, which would attempt to “address record inflation by paying down our national debt, lowering energy costs and lowering healthcare costs.”
Manchin and Schumer struck the deal to advance the Democrat agenda and lower the deficit at a time when Americans continue to reel from record-high inflation.
According to a one-page summary of the bill, the Democrat reconciliation bill would:
- Raise $739 billion by:
- Setting a 15 percent corporate minimum tax, which would raise $313 billion.
- Allowing Medicare to negotiate the price of drugs, which would raise $28 billion.
- Increasing IRS tax enforcement, garnering $124 billion.
- Closing a loophole on the carried interest deduction.
- Spend $433 billion by:
- Extending enhanced Obamacare subsidies for three years, which would cost $64 billion.
- Enacting $369 billion in climate change and energy security.
- Reduce the deficit by $300 billion.
Manchin and Schumer said in a statement on Wednesday:
It is past time for America to begin paying down our $30 trillion national debt and get serious about the record inflation that is crushing the wages of American workers. In practical terms, the Inflation Reduction Act of 2022 would dedicate hundreds of billions of dollars to deficit reduction by adopting a tax policy that protects small businesses and working-class Americans while ensuring that large corporations and the ultra-wealthy pay their fair share in taxes.
Tax fairness is vital to our nation’s economic future. It is wrong that some of America’s largest companies pay nothing in taxes while freely enjoying the benefits of our nation’s military security, infrastructure and rule of law. It is commonsense that a domestic corporate minimum tax of 15 percent be applied only to billion-dollar companies or larger ensuring that America’s largest businesses are no longer able to operate for free in our economy. Furthermore, to avoid inevitable partisan gamesmanship and increase confidence in the fairness of the tax system, tax reform should never put U.S. businesses at a disadvantage against international competitors.