President Joe Biden‘s Build Back Better Act’s fate is now in the hands of the US Senate. The 50-50 partisan split in the Senate will make the bill’s passage difficult. Senator Kyrsten Sinema (D-AR) has already said she’s not onboard for spending that kind of money, especially with the inflation we have today.
Chuck Schumer (D-NY) will have to convince Sinema and Senator Joe Manchin (D-WV) that the $2.4 trillion cost of the bill can be offset by increasing the IRS and enforcement. The Democrats want to spend our money. We don’t want them to. And they’re going to argue offsetting the cost will be to punish more of us in the end.
The Democrats have always suggested that the best way to pay for the legislation is to raise taxes on the wealthy. Leftists have always argued that the rich benefited disproportionately by the 2017 tax reform law passed by Republicans and signed into law by former President Donald Trump. But data now shows that this argument is pure poppycock.
Data published by the IRS shows that everyone benefited substantially from the tax reform law with the largest group to benefit being working and middle-class taxpayers, not the top 1 percent that Democrats always make the boogeyman.
Of course, Republicans knew this all along, which is why it gets frustrating to hear Democrats lie about it all the time. They play class warfare games and they’re not even being honest about it.
Rep. Nancy Pelosi (D-CA) said on November 6, 2017, “Despite Republicans’ empty promises to cut taxes for middle class working families, it’s clear that the GOP tax plan for the wealthiest is rich indeed.”
“House Republicans’ tax bill would increase taxes for 12 percent of Americans next year, according to a new report from the nonpartisan Tax Policy Center,” Pelosi added.
“The truth is already catching up with the GOP’s snake oil pitch,” Pelosi concluded. “Instead of pushing a deficit-exploding handout to corporations and the wealthy that increases taxes on millions of hard-working families, Republicans must join Democrats to work on bipartisan tax reform that puts the middle class first.”
And it was all a garbage lie.
When looking at the IRS data, the effects of tax credits and other reforms to the tax code, shows filers with adjusted gross income of $15,000 to $50,000 received an average tax cut of 16% to 26% in 2018, the first year the Republican tax reform went into effect.
Taxpayers who earned $50,000 to $100,000 got a tax cut of 15% to 17% and people who earned $100,000 to $500,000 in adjusted gross income got a tax cut of 11% to 13%.
Do you notice a pattern? The middle class got the highest percentage tax cut under Trump, not the rich the way the Democrats always lie.
In fact, those who earned $500,000 got an average tax cut of 9% and those who earned $1 million saw a less than 6% cut.
If my Catholic school math is correct, that means most middle class and working class taxpayers got a tax cut that was at least double that of what people who earned $1 million or more.
Thanks to the tax reform bill, the wealthy paid a large piece of the total income tax revenue pie after the Republican tax reform law went into effect than they did the year prior.
According to the IRS data, every person earning $200,000 or more saw their tax burden increase in 2018 compared to 2017, and everyone who earned less than that paid less proportionally.
Democrats had to have known this, but they lied for the last four years about the Trump tax cuts.
The truth is, the Republican tax reform law did exactly what they said it would do. It lowered taxes on all income groups and the ones who made out best were middle-class households. The reforms also drove economic growth, that reduced poverty and increased prosperity.
And the Democrats can’t wait to get rid of it.