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Inflation Reduction Act: What tax hikes are in the bill?
The new spending bill includes $80 billion in funding for the IRS
‘Fox Business Tonight’ host David Asman discusses how the new spending bill Joe Manchin voted for will benefit the IRS massively.
After months of painstaking negotiations, Senate Democrats on Sunday approved a sweeping health care and climate change spending package that amounts to one of the largest tax hikes in decades.
The Inflation Reduction Act of 2022 – which passed along party lines with Democrats employing the budget reconciliation process – would raise an estimated $739 billion over the next decade, with the revenues going toward initiatives designed to combat climate change and curb pharmaceutical prices, as well as efforts to reduce the nation's $30 trillion debt.
It includes about $433 billion in new spending, while roughly $300 billion of the new revenue raised would go toward paying down the nation's deficit. Democrats say the legislation will help to reduce inflation and provide relief to Americans in the form of lower health care costs, while Republicans argue the measure does little to tackle higher prices – and could actually exacerbate the crisis.
The nonpartisan Congressional Budget Office said in an analysis last week that the spending bill will have a negligible impact on inflation.
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