Larry Kudlow: These tax increases are hitting everyone


Save America. Kill the bill. The more America learns about it Manchin-Schumer especially, the less America likes him. More spending will increase inflation. Higher taxes will deepen the recession. It’s just common sense.

A new poll in Arizona, which happens to be Sen. Kirsten Sinema’s home state, shows that 53 percent of respondents say the senator should oppose any major spending bill that includes a tax increase.

Only 40 percent said Ms. Sinema should compromise with Democratic leaders, and 50 percent said they would be less likely to vote for Sen. Sinema in 2024 if she supported the new spending bill. Fifty-four percent think big spending and tax increases will increase inflation. Sixty-three percent say Congress should not raise taxes during a recession.

Sen. Sinema, along with Sen. Manchin, helped kill the $5 trillion bill last winter, but she’s on the hot seat right now. Her favor is only 39%. Her unfavorable, 55%. So it’s upside down by 11 percentage points. Girl, you have a lot of work to do. Please hurry and kill the bill.

MANCHIN-SCHUMER BILL WOULD RESTORE TAX ON IMPORTED OIL AND PETROLEUM PRODUCTS

Joe Manchin

Sen. Joe Manchin has agreed to support a reconciliation bill as part of President Biden’s Build Back Better program after stubbornly refusing to give his approval for months. (Photo: F. Carter Smith/Bloomberg via Getty Images/Getty Images)

Just to review the bidding under this bill, according to the nonpartisan Joint Committee on Taxation, people making less than $10,000 a year would be hit the hardest with a 3.1% tax increase. Those between $20,000 and $30,000 will see a 1.1% increase in taxes. Those earning less than $100,000 would see a $6 billion tax increase. Those under $200,000 will see a $17 billion tax increase.

Everyone is getting hit from all over, and these estimates are from the staff of the Joint Committee on Taxation, which is completely nonpartisan. In terms of imposing a 15% corporate tax floor — which creates a huge tax barrier to the capital investment by businesses that is so important to innovation, technological progress, real worker wages and typical family incomes — the biggest burden of this book minimum of the $313 billion tax increase would hit manufacturers by 50% and then spread to all other sectors between 5% and 13%.

Manufacturers, which by the way include fossil fuels (including coal), cars, trucks, utilities, steel and pretty much everyone else that makes something, corporate profits could drop by over $50 billion next year, so let’s apply some common sense .

Firms that make less money will have less money to pay their workforce. Therefore, the increase in the corporate tax burden mainly affects middle-income working people. It’s just common sense. That is why this is a very bad bill. This idea by Biden that he will never raise taxes on anyone making under $400,000 is just wrong.

Finally, let’s talk about that IRS beast. The The Manchin-Schumer bill will add $80 billion, more than six times the current IRS budget of $12.6 billion, and of course more than half of that, $45.6 billion, will go to enforcement and who do you think the IRS will go after ?

Well for starters, they will go after small transit businesses, subchapter-S. That’s right, small businesses that produce the majority of jobs and output in the economy. The Joint Tax Committee estimates that up to 90% of the so-called understated income will come from those making less than $200,000 a year — understated, my keister.

MANCHIN-SCHUMER DRAFT ON TARGET EXPENDITURE VERSUS INVESTOR PREFERRED TAX DOOR

Joe Manchin's spending bill

Sen. Joe Manchin speaks during a press conference at S&P Global’s 2022 CERAWeek conference in Texas on Friday, March 11, 2022. (Photo: F. Carter Smith/Bloomberg via Getty Images/Getty Images)

I mean, this agency is sitting on 21.3 million unprocessed returns, with millions and millions of taxpayers waiting to get refunds or final decisions, and by the way, let me remind you of the name Lois Lerner, who was Obama’s political operative , set up the IRS to harass conservative groups. You may recall that she was run out of town before the dog catchers caught her.

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The IRS’ poisonous tentacles always have a way to reach and entangle conservative non-profits, including religious groups, including pro-life groups. I’m sure it’s just a coincidence, right? wrong

You know, this country was founded by brave men and women who rebelled against King George III’s oppressive taxation without representation. I was there. This atrocious power grab by the IRS is worse than George III. So, let me be blunt: save America. Kill the bill.

This article was adapted from Larry Kudlow’s introductory commentary for the August 3, 2022, issue of Kudlow.

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