Tax experts are trying to figure out exactly theso-called inflation reduction law —755 page giveaway patchworkis. 8}, carve-outs and subsidies aimed at mitigating inflation by reducing deficits and hiking taxes cost the average American.
But they agree on one thing. That means there are many possibilities.
"In the long run, everyone has a slightly lower income after tax," Garrett Watson, Senior Policy Analyst and Modeling Manager at the Tax Foundation, told The Post.
The biggest reason for the turmoil: Bills have not yet been fully scored by the Office of Management and Budget (usually a nonpartisan body that puts a price tag before each bill is voted on). However, President Biden's previous trillion-dollar buildback better proposal, a slimmed-down iteration of the inflation reduction law, has been put together very quickly and has not yet been fully analyzed.
"This is the world's largest last-minute term paper," James Lucier, managing director of Washington-based policy research firm Capital Alpha, told The Post on Monday. "No one knows if the numbers will add up, and many don't even know what's in it anymore."
"How have you been billed in the last few days?" We are updating the modeling to see if it has changed to, "Watson agreed. "For tax professionals and everyday Americans, the fact that there are so many last-minute changes in the amendments makes it difficult to track."
Tax professionals We are trying to pinpoint the so-called inflation reduction method — 755 page giveaway patchwork . 24}, carve-outs and subsidies aimed at mitigating inflation by reducing deficits and hiking taxes cost the average American.
CBO is still processing numbers With a $ 740 billion energy and health bill, they made one thing clear. Lawwill have a "negligible" impact on inflation, at least in 2022 and 2023. 38}
"The real damage here is due to this incredibly unplanned law. Quality that can last for a long time, without the usual quality control process and without committee hearings. It will pass a large bill without actually creating a law. "
Watch Americans see how bad the bill is While Waiting — The American Tax Reform Council has created a list of the largest costs for familiesbased on a combination of CBO data. And a joint committee on parliamentary taxation.
Includes:
- $ 6.5 billionRegressive tax on American energy companies that are passed on to families in the form of rising energy costs. Increasenatural gas prices for the average household by 17%.
- 16.4 cents / barrel taxis levied on imported crude oil and petroleum products and given to families trying to fill their cars with gasoline. This is equivalent to$ 12 billion in taxesBuyers of oil or gas products.
- Raise the tax rate on coal mining. This will add $ 1.2 billionand increase family energy bills. Taxes on underground coal mined jump from 50 cents per ton to $ 1.10 per ton. Surface coal mining is taxed at 55 cents per ton instead of 25 cents per ton.
- A new15% tax, known as the "book value", for companies that report profits of at least $ 1 billion to shareholders. Democrats say it raises an estimated $ 313 billion,, but critics say taxes will also be passed on to Americans in the form of higher prices, less employment, and wage cuts. ..
- $ 124 billion stock repurchase tax. This could mean that 401 (k), IRA, and pensions will shrink for most Americans— $ 22.8 trillion given that severance pay accounts account for nearly 37%. Stock market.
- The $ 80 billioninvested in theIRS to help government agencies raiseunderreported income is$ 124 billionWill be returned to the federal government, but will target small business ownersEstimated additions collected by the IRS, according to the Joint Tax Commission 78% to 90% of the $ 200 billion comes from Americans under $ 200,000 a year.
- Excise tax of 95%on pharmaceutical companiescould cost more than $ 1 trillionover the next decade by reducing the development and introduction of new drugs.
- $ 52 billion raised as part of a tax increase for businesses not subject to corporate income tax. This hurtmidsize businesses and family businesses
"For example, this minimum book tax requires a lot of regulation to apply to companies that have doubts about every corner of the law," Watson said. "This isn't over yet."
"I can't afford to run such a process again," Lucier added. "Such turmoil damages Congress's reputation as a legislative body. This is not the way the system should work."