The Inflation Reduction Act was approved by the Democrats in the Senate on Sunday. The bill allocates $80 billion to the Internal Revenue Service (IRS) so that it can conduct additional audits on households in the United States that primarily belong to working and middle-class Americans.
According to research by the Joint Committee on Taxation, between 78 and 90 per cent of the money collected from taxpayers as a consequence of new audits and investigations as a direct result of the Act would come from households in the United States with an annual income of less than $200,000.
In the meanwhile, it is anticipated that only four to nine per cent will come from households with annual incomes of more than 500,000 dollars.
Sen. Mike Crapo, a Republican from Idaho, has proposed an amendment that would prohibit any of the newly allocated IRS monies from being used to target individuals with yearly incomes of less than $400,000.
According to Crapo, the amendment insured that President Joe Biden would not break his vow to not raise taxes on individuals in the United States earning less than $400,000 annually.
However, in a vote that was strictly along party lines, all Democrats in the Senate voted against accepting the amendment. Instead, the law that was approved just gives the impression that Congress does not “plan” to raise taxes on individuals and families whose yearly earnings are less than $400,000.
According to research conducted by the Joint Committee on Taxation, between 78 and 90 per cent of the money collected from taxpayers as a consequence of new audits and investigations as a direct result of the Act would come from households in the United States with an annual income of less than $200,000.
In other words, the majority of the money collected from taxpayers would come from low-income households. In the meantime, it is anticipated that only four to nine per cent will come from households with annual incomes of more than 500,000 dollars. This is a significant drop from the current projections of twenty to thirty per cent.
Sen. Mike Crapo, a Republican from Idaho, has put forward a proposal for an amendment that would bar any of the newly allotted IRS funds from being used to target individuals with annual earnings of less than $400,000.
According to Crapo, the amendment ensured that President Joe Biden would not backtrack on his promise to refrain from increasing taxes for individuals in the United States earning less than $400,000 a year.
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A promise that Vice President Biden made to the people of the United States of America during his most recent State of the Union (SOTU) speech in March appears to have been broken by the Inflation Reduction Act.
“And under my proposal, no one with an annual income of less than $400,000 will be required to pay even one penny more in new taxes. Biden stated at the time that “nobody” was the answer.
