Todd Young: “I heard concerns from Hoosier job creators about how President Biden’s so-called Inflation Reduction Act will increase taxes, double the size of the IRS, and increase inflation on our Hoosier small businesses and workers.”
INDIANAPOLIS – The Indiana Democratic Party, the organization that advocates for the future of Indiana and its families, today criticized Todd Young for once again spreading misinformation about the Inflation Reduction Act (IRA) and its impact on Indiana’s future. During his so-called “Hoosier Jobs Tour”, Young used small business owners to claim the IRA would increase taxes, double the IRS, and increase global inflation for Indiana businesses.
Everything Todd Young said was a lie and had more to do with the Indiana GOP’s extremist agenda than facts about a law that’s creating a better future for Hoosiers.
Contrary to Young’s misinformation, The Inflation Reduction Act will help combat global inflation and lower the cost of goods for Hoosier families. The law will also provide a tax credit for small businesses and make big corporations finally pay their fair share. The best part: no person or family making under $400,000 would see their taxes increase. The IRA is legislation Hoosiers have been wanting from politicians, because it would create a better future for their families.
Unfortunately, Todd Young and the Indiana Republican Party are proving their months-long critiques on global inflation were more about partisan elections and less about solving a kitchen-table issue. See the full fact check below:
FACT: IRA Does Not Increase Taxes on Middle Class
New York Magazine: Republicans Say Biden’s Plan Taxes the Middle Class. That’s False. Biden’s plan fulfills his campaign promise
Over the weekend, a congressional tax committee analyzed a portion of the tax Inflation Reduction Act Senator Joe Manchin struck with Senator Chuck Schumer and President Biden. Republicans inaccurately claimed the report shows the plan would increase taxes on the middle class. The plan in fact raises taxes only on corporations with an income over $1 billion. It does not raise taxes on individual taxpayers at all.
This false claim immediately began to spread through conservative media. The study, by the Joint Committee on Taxation, “finds that average tax rates will increase for nearly every income category in 2023 under the bill,” asserts The Wall Street Journal editorial page. “This gives the lie to Democratic claims that no one earning under $400,000 will pay more taxes under the bill, a promise Mr. Biden also made in his campaign. The reality is that the Schumer-Manchin bill is a tax increase on nearly every American.”
The JCT report simply does not find this at all. The false assertion that Manchin’s deal raises taxes on the middle class combines a series of fallacies.
FACT: IRA Does Not Double the Size of the IRS
TIME: Trump Allies Are Attacking Biden For a Plan to Hire 87,000 New IRS Agents That Doesn’t Exist
Republican members of Congress and right-wing media figures have launched a new line of attack against Democrats: that the Internal Revenue Service intends to use nearly $80 billion in new funding to pursue similar intrusions on average Americans. Those dollars, Trump allies are saying, will go toward the hiring of 87,000 new IRS agents. […]
There’s only one problem. It’s not true.
The Inflation Reduction Act, a landmark climate, health care and tax package that passed the Senate on Sunday and is expected to head to Biden’s desk after the House approves it on Friday, includes roughly $78 billion for the IRS to be phased in over 10 years. A Treasury Department report from May 2021 estimated that such an investment would enable the agency to hire roughly 87,000 employees by 2031. But most of those hires would not be Internal Revenue agents, and wouldn’t be new positions.
According to a Treasury Department official, the funds would cover a wide range of positions including IT technicians and taxpayer services support staff, as well as experienced auditors who would be largely tasked with cracking down on corporate and high-income tax evaders.
FACT: IRA Will Not “Increase Inflation” for Small Businesses
Forbes: Five Truths About How The Inflation Reduction Act Will Help Small Business And Working Families
1. It will not raise taxes on the vast majority of small businesses or working families. It invests in them
This legislation is not funded in any way by personal tax increases on small business or working families making under $400,000, which is roughly 98% of all Americans. Instead, it makes crucial investments in them.
2. The bill significantly increases a crucial small business tax credit
The Inflation Reduction Act doubles the refundable research and development tax credit for small businesses, raising it from $250,000 to $500,000. The credit can be applied against payroll taxes and a wide variety of expenses, including product development and technology.
3. Increased funding for the IRS will not be used to target small businesses or working families
The IRS has been woefully underfunded for decades, which means wealthy corporations and individuals who can afford to hire expensive lawyers and accountants can game with little fear of IRS oversight. This will end that unfair advantage.