Ryan Wheless discusses the inflation reduction act and how it will unleash a much tougher IRS.
The inflation reduction act gives the IRS $80,000,000,000 in additional funding over the next 10 years.
This is more than 6 times the current annual IRS budget of $12,600,000,000 and will allow the IRS to hire 87,000 new IRS agents and tax auditors. Ryan discusses how taxes will be going up.
Not just in the form of higher tax brackets and lower deductions but from audits and tax collection as well. Prepare now for higher taxes which are destined to come in the future.
Some information regarding the inflation reduction act of 2022:
The Inflation Reduction Act of 2022 (IRA) is a landmark United States federal law which aims to curb inflation by reducing the deficit, lowering prescription drug prices, and investing into domestic energy production while promoting clean energy.
The inflation reduction act was passed by the 117th United States Congress and signed into law by President Joe Biden on August 16, 2022. It is a budget reconciliation bill sponsored by Senators Chuck Schumer (D-NY) and Joe Manchin (D-WV).
The bill was the result of negotiations on the proposed Build Back Better Act, which was reduced and comprehensively reworked from its initial proposal after being opposed by Manchin. It was introduced as an amendment to the Build Back Better Act and the legislative text was substituted.
The law, as passed, will raise $738 billion and authorize $391 billion in spending on energy and climate change, $238 billion in deficit reduction, three years of Affordable Care Act subsidies, prescription drug reform to lower prices, and tax reform.
The law represents the largest investment into addressing climate change in United States history. It also includes a large expansion and modernization effort for the Internal Revenue Service (IRS).
According to several independent analyses, the law is projected to reduce 2030 U.S. greenhouse gas emissions to 40% below 2005 levels. The projected impact of the bill on inflation is disputed.
The Build Back Better Plan was a legislative framework proposed by United States President Joe Biden between 2020 and 2021.
Generally viewed as ambitious in size and scope, it sought to make the largest nationwide public investments in social, infrastructural, and environmental programs since the 1930s Great Depression-fighting policies of the New Deal.
The plan was divided into three parts: one of them, The American Rescue Plan, a COVID-19 relief spending bill, was signed into law in March 2021. The other two parts were reworked into different bills over the course of extensive negotiations within and among Congressional entities.
The American Jobs Plan (AJP) was a proposal to address long-neglected infrastructure needs and reduce America’s contributions to climate change’s destructive effects; the American Families Plan (AFP) was a proposal to fund a variety of social policy initiatives, some of which (e.g. paid family leave) had never before been enacted nationally in the U.S.
The Build Back Better Act was a bill introduced in the 117th Congress to fulfill aspects of the Build Back Better Plan.
It was spun off from the American Jobs Plan, alongside the Infrastructure Investment and Jobs Act, as a $3.5 trillion Democratic reconciliation package that included provisions related to climate change and social policy. Following negotiations, the price was lowered to approximately $2.2 trillion. The bill was passed 220–213 by the House of Representatives on November 19, 2021.
In December 2021, amidst negotiations and parliamentary procedures, Senator Joe Manchin publicly pulled his support from the bill for its cost and for envisioning a too aggressive transition to clean energy, then subsequently retracted support for his own compromise legislation.
This effectively killed the bill as it needed 50 senators to pass via reconciliation, and all 50 Republican senators opposed it.
In the summer of 2022, Manchin and Senate Majority Leader Chuck Schumer engaged in negotiations over a revised reconciliation bill with about $1 trillion of revenue from tax reform, $500 billion in climate and health care spending, and $500 billion in deficit reduction.
However, Manchin announced abruptly on July 14, 2022 that he wouldn’t support new climate spending or tax reform due to his fear that the bill would worsen inflation. He later stated that he would be open to revisiting those elements a few months later, provided that inflation slowed meaningfully.
Biden nonetheless conceded defeat on a climate bill, urging Congress to pass whatever Manchin would agree to (a slim, $280 billion health care bill that would acquire its revenue from allowing Medicare to negotiate prices and spend $40 billion on Affordable Care Act subsidies).
Unbeknownst to nearly everyone in Washington, Manchin and Schumer reengaged in secret negotiations on July 18, 2022. On July 27, the two men released a statement announcing the $738 billion Inflation Reduction Act of 2022, which included climate spending and tax reform.
The sudden deal was widely regarded as a ‘shocker’ as Democrats had voiced that there was little hope for a revival of their climate and tax priorities in addition to Manchin himself being rather pessimistic on the prospect of an expanded bill in public.
As the revised bill made its way through the chambers of Congress, the new reality of Biden unexpectedly having a clear path to enacting substantial portions of his domestic agenda into law led to a wide reevaluation of the success of the Biden presidency thus far and was expected to give the President and his party a boost in the 2022 midterm elections.
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