Americans are facing massive tax hikes and soaring energy prices in 2023 as the Democrats’ Inflation Reduction Act could cost taxpayers an extra $20 billion in new taxes.
According to the Daily Mail, the Inflation Reduction Act includes three major tax hikes for energy companies that are set to increase Americans’ energy bills. The energy taxes consist of a regressive tax on American oil and gas development, which will raise taxes by an estimated $6.5 billion.
President Joe Biden's prized Inflation Reduction Act will take effect on Jan. 1, 2023, including a range of new tax increases that will affect U.S. homeowners, retirees, and small businesses. https://t.co/ZpSwaNPdGi
— NEWSMAX (@NEWSMAX) December 30, 2022
The American Gas Association said the methane tax alone could lead to a 17% increase on an average American family’s natural gas bill. President Joe Biden and House Democrats added the tax to the bill despite the already skyrocketing energy prices in the country.
Sources also told the Daily Mail that Democrats are proposing another 16.4 cents-per-barrel tax on crude oil and imported petroleum products. Should the proposal go through, consumers will bear the tax burden through even higher gas prices.
Democrats are also proposing a new tax that will double the existing excise taxes on coal production. The Joint Committee on Taxation estimates that this new coal tax hike will generate $1.2 billion for the federal government. Americans would also have to bear the tax burden in the form of higher electricity bills.
Another proposal being touted by the Democrats is the $225 billion corporate income tax hike which will also be passed on to households. According to the Daily Mail, Democrats are proposing a 15% corporate alternative minimum tax on the financial statement income of American businesses reporting profits of $1 billion over the last three years.
Working families will be most affected by this tax hike and will bear the brunt in the form of higher prices, fewer jobs and lower wages.
The Tax Foundation said the corporate income tax would reduce GDP by 0.1% and lead to the loss of 27,000 jobs. The Tax Foundation added that the tax’s disproportionate burden on key industries could worsen the ongoing supply chain problems.
Even the value of household nest eggs and retirement savings accounts are not safe from the Democrats, who plan to introduce a new federal excise tax on stock buybacks. This plan could impact union retirement plans negatively and put American employers at a competitive disadvantage with China.
All of these negative impacts on Americans caused by the Democrats’ Inflation Reduction Act could hurt working families for years to come.