The Inflation Reduction Act of 2022 appears to have a good shot at being signed into law. If Senate Democrats can get Sen. Kyrsten Sinema (D-AZ) to join Sen. Joe Manchin (D-WV), the bill will have the necessary 50 votes to pass through the reconciliation process.
Let’s hope that never happens. The plan would hurt working-class taxpayers and small-business owners across America. The act will introduce a “corporate alternative minimum tax,” which will compel a 15% tax on corporate income. It will increase the taxes imposed on certain high-income earners. Finally, it will step up enforcement mechanisms within the IRS.
While most people rightfully do not want to see tax hikes during a recession, few realize the negative impact expanded enforcement would have. The White House said it intends to make the “top 1%” pay for expanded government programs. But expanding IRS enforcement won’t affect just the wealthy. Instead, it’ll just end up hurting the middle class.