Sorting Out the Partisan Tax Spin on Inflation Reduction Act

Both political parties are spinning the facts on whether the Democrats’ Inflation Reduction Act would raise taxes.

Democratic Sen. Joe Manchin says the climate bill “does not raise taxes” but merely closes tax “loopholes.” Republicans say it does raise taxes and would break President Joe Biden’s pledge not to raise taxes on people making less than $400,000 a year.

Republicans say that since higher corporate taxes lead to reductions in stock values and workers’ wages — both of which fall, in part, on earners throughout the income scale — Biden has broken his pledge. But in promising during the campaign not to raise taxes on those making below $400,000, Biden always followed that up with promises that he would make corporations “pay their fair share.”

The would invest about in energy and climate change incentives including tax credits for the production of solar and wind energy equipment and the purchase of electric vehicles, and another roughly $100 billion in health care expenditures, mainly for an extension of subsides for health insurance policies purchased via the Affordable Care Act exchanges. (For an explanation”)