Senate Democrats’ Tax Hike Would Raise Taxes on Middle-Class Americans and Deepen the Recession
Alfredo Ortiz, president and CEO of Job Creators Network, released the following statement on new analyses showing that Senate Democrats’ tax hike would raise taxes on middle-class Americans and have virtually no impact on inflation and the deficit.
“Senate Democrats are trying to violate the cardinal economic rule to never raise taxes during a recession. Making matters worse, a new analysis by the Joint Committee on Taxation finds that Democrats’ proposed tax hike would significantly raise taxes on middle-class Americans, deepening the recession and violating President Biden’s pledge not to raise taxes on anyone earning less than $400,000 per year.
“This economic pain would not be offset by any inflation or deficit gain. The Penn Wharton Budget Model concludes that the bill would have no impact on the deficit until 2027 and no impact on inflation at all. In other words, the bill is an Inflation Reduction Act in name only. In fact, the significant tax increases in the bill might worsen inflation and the deficit by making it more difficult for businesses, especially manufacturers, to scale and grow. What’s clear is that this tax hike would deal a painful blow to ordinary Americans who are already facing historic challenges due to Biden’s bad policies.”