A pivotal vote in the Senate is anticipated to take place this week, and five former secretaries of the Treasury have come forward to express their support for the Inflation Reduction Act.
The officials, who have held positions in administrations held by both Democrats and Republicans, said in a statement that they supported the bill and that it would not increase taxes on families that earn less than $400,000 each year. They served in both Democratic and Republican administrations.
The measure proposed by Democrats is supported by Majority Leader Chuck Schumer and Senator Joe Manchin of West Virginia; but, to pass the bill through budget reconciliation, the Democrats will need the support of each and every one of their senators.
Arizona Senator Kyrsten Sinema has been mute about the question of whether or not she will support the proposal. If she decides against it, the bill will not move forward because it is anticipated that no Republicans will support it.
Hank Paulson, who served as the Secretary of the Treasury under George W. Bush, Robert Rubin and Larry Summers, both of whom served under Bill Clinton, Timothy Geithner and Jacob Lew are the five individuals who have put their names to the declaration (both Barack Obama).
“As former Treasury secretaries of both Democratic and Republican administrations, we support the Inflation Reduction Act, which is financed by prudent tax policy that will collect more from top earners and large corporations,” they said in the statement that was published by Axios on Wednesday.
“We support the Inflation Reduction Act because it is financed by prudent tax policy that will collect more from top earners and large corporations.”
No family with an annual income of less than $400,000 will see an increase in the amount of taxes owed or paid. And the additional taxes that are being placed on corporations do not reflect increases in the corporate tax rate; rather, they reflect the recovery of revenue that was lost due to tax avoidance and measures that benefit the wealthiest.
However, both the White House and Senator Manchin have stated that this is not the case, despite claims made by opponents of the bill, including some Republicans, that the law will result in an increase in taxes for families with annual incomes of less than 400,000 dollars.
In their letter, the former secretaries of the Treasury Department stated, “The selective presentation by some of the distributional effects of this bill neglects benefits to middle-class families from reducing deficits, from bringing down the prices of prescription drugs, and from having more affordable energy.”
“This measure will help boost American competitiveness, address our climate catastrophe, reduce expenses for families, and fight inflation; thus, Congress should enact it as soon as possible.”
Inflation would be lowered, according to proponents of the Inflation Reduction Act of 2022, since the bill would cut the national deficit.
In addition to that, it would allocate $369 billion for energy security and give Medicare the authority to negotiate lower pricing for prescription drugs, amongst other measures.
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These items would be paid for—and the deficit would be reduced—through improved IRS enforcement, the closing of the so-called “carried interest loophole,” and the imposition of a minimum corporate tax of 15 per cent.
The Democrats want to pass the bill through the budget reconciliation procedure, which indicates that they will not require the votes of Republican senators; nonetheless, Senator Sinema’s support will be essential for them to be successful.
If the law were to be passed, it would be regarded as a big success for the Democrats in the run-up to the extremely important midterm elections.
