Summary by JW Williams
The Inflation Reduction Act of 2022 includes $80 billion for the IRS, to be distributed over the next ten years, allowing them to hire 87,000 new agents, more than doubling their workforce to crack down on tax evasion. At 165,661 employees, the IRS is poised to become larger than the Pentagon, State Department, FBI and Border Patrol combined total employees of 158,779.
Taxpayers with taxable income below $400,000 will supposedly not see an increase in their tax bills, however, the Joint Committee on Taxation committee concluded that the new bill would increase tax revenue by $16.7 billion on Americans earning less than $200,000 a year. Households with less than $25,000 per year were five times as likely to be audited by the IRS than everyone else in 2021. In addition, conservatives worry that they could be targeted by the IRS.
Approximately $385 billion will go to the “climate crisis” and energy policies, supporting electric vehicles, rooftop solar and energy efficiency, and will focus on low income communities. The bill requires a 40% reduction in greenhouse gas emissions by 2030.
The proposal encourages “diet and feed management strategies to reduce enteric methane gas emissions from 8 ruminants“—(animals like cows and pigs). This comes at the same time that farmers in Europe and Canada are facing new regulations that will force them to limit raising animals.
The Inflation Reduction Act of 2022 includes a proposal to raise “approximately $450 billion to pay for deficit reduction, clean energy, and climate investment.” The bill imposes a 15% Corporate Minimum Tax on the top 200 corporations not currently paying taxes at that level. Supporters claim that the 15% increase will raise $313 billion in revenue, however, higher corporate tax rates usually eventually result in fewer jobs for Americans.