Does the "Inflation Reduction Act" (IRA) raise taxes on people making less than $400,000 per year?
Contrary to claims that the IRA doesn't raise taxes on anyone making less than $400,000 per year, Congress' Joint Committee on Taxation estimates that the IRA increases taxes on every income group. This includes families who make less than $10,000 per year to those who make more than $1,000,000. The law does this by enacting hidden taxes, which are those that generally don't appear on purchase receipts, paychecks, or tax returns. Some common examples of hidden taxes are excise taxes, employer payroll taxes, and corporate income taxes. Although businesses write the checks for such taxes, they are ultimately borne by individuals via lower wages, higher prices, and lower profits. U.S. households paid an average of $7,000 in hidden federal taxes in 2018, and the IRA adds to this tab via taxes on corporations, crude oil, methane, offshore drilling, and more. The IRA was enacted by Congress with 100% support from Democrats and 0% from Republicans.