Trans Woman Inducted Into National 'Women’s' Hall of Fame
Boston DA Considering Contempt of Court Charges Against ICE Agent Doing His Job
NYT: Anthony Fauci’s Wife Fired From NIH
‘Show Up for Work’: Rep. Chip Roy Calls Proxy Voting Unconstitutional
Showing Them 'Adolescence' Will Fix This! BBC Locks Replies on Post About Six...
Female Fencer Expelled From College Tournament for Refusing to Compete Against Biological...
Congresswoman Brings Infant to Work to Tell Speaker Mike Johnson Not to Mess...
RIP King: Actress Jennifer Tilley Remembers Val Kilmer With EPIC Audition Story
A Conspiracy of Dunces
Innocent California Walgreens Employee Is the Latest Victim of Left's Violent Rhetoric
Masks Dropped: DNC, Schumer, Jeffries Sue Trump Over EO That Prevents Non-Citizens From...
'This Scoop Is GARBAGE:' Karoline Leavitt SHUTS DOWN Rumors Musk Is Getting Out...
Martha MacCallum Had ENOUGH of Dem Sen. Chris Coons' Denials About Gov't Waste...
British Schools to Show Netflix's 'Adolescence' to Gaslight Population About Who Commits V...
WATCH: Scott Walker EMBARRASSES CNN's Abby Phillip As She Repeatedly Lies About Social...

Ron Klain retweet about Inflation Reduction Act and the middle class 'isn't the defense they think it is'

The Biden White House and Democrats have been keeping themselves busy arguing that the “Inflation Reduction Act” will not raise taxes on the middle class. White House chief of staff Ron Klain even retweeted a New York Magazine article by Jonathan Chait in an attempt to put down any claims that the Inflation Reduction Act would be detrimental to the middle class:

Advertisement

null

In the story, Chait cited a report to say that the Inflation Reduction Act (which ironically would worsen inflation) to say that middle class taxes wouldn’t go up, BUT…

Did Klain actually read the story? Maybe he’s just hoping nobody else will because the devil’s in the details:

From the story that earned a Ron Klain retweet:

Second, and far more importantly, the partial analysis does not actually find that the plan increases taxes on the middle class. It is an analysis of the burden of a proposal, which would establish a 15 percent minimum corporate income tax on firms with income over $1 billion.

The complication that enters the picture is that the JCT, like other economic modelers, tries to project how the burden of a tax increase is borne. The agency used to assume that corporate tax increases are borne entirely by shareholders in the firms that pay the tax. In 2013, the agency changed its modeling assumptions and now assumes that corporate tax increases are not borne entirely by shareholders. Instead, firms respond to tax increases in part by reducing wages for their employees and reducing investment, which ultimately leads to slightly lower wages.
[…]
But even assuming JCT’s projections are completely correct, it is not a description of a tax increase on the middle class. It is a forecast, rather, that a tax increase on large corporations will eventually lead to slightly lower incomes by the middle class. JCT’s table breaks down this burden by income category. But it is not showing that the people in these income categories will pay more tax.

Advertisement

“Actually the middle class might even pay less in taxes because this will lower their incomes” is quite the defense to allegations that the bill would increase taxes.

https://twitter.com/VigiaFinca/status/1554104792716398593

And of course corporations will pass any tax increases onto consumers on top of everything else:

That will definitely happen if this bill passes, which is looking increasingly likely.

***

Editor’s note: We’ve made a correction above to note that Chait writes for New York Magazing and not The New Yorker. Chait also had this to say that he made no such concession in his article that the Inflation Reduction Act would reduce middle class incomes:

Join the conversation as a VIP Member

Recommended

Trending on Twitchy Videos

Advertisement
Advertisement
Advertisement