Defiant Manchin hits back at Republican ‘lies’ that deal would break Biden tax pledge

West Virginia Sen. Joe Manchin blasted back at critics of his climate and tax deal with Senate Majority Leader Charles Schumer Tuesday, slamming Republicans who used an analysis to say people earning less than $400,000 would see their taxes rise.

The centrist Democrat, who stymied party leaders’ plans for a ‘reconciliation’ package for months before coming to the last-minute agreement, made the case to conservative viewers on Fox News, in back and forth with interviewer Harris Faulkner.

‘I’m saying Americans $400,000 and below now are going to be taxed,’ the host told him.

 ‘That’s wrong. That’s wrong,’ Manchin insisted.

‘Their taxes are going to go up,’ Faulkner told him. 

‘That’s a lie. That is a pure, outright lie!’ he shot back.

‘That’s a lie. That is a pure, outright lie,’ said Sen. Joe Manchin (D-W.Va.) in tough cross talk with interviewer Harris Faulkner on Fox News

Faulkner was pointing to an analysis by the  nonpartisan Joint Committee on Taxation, which was responding to a request for an analysis by Republicans on the Senate Finance Committee.

It forecasts that the bill’s new 15 per cent corporate minimum tax could cause companies to pass on new taxes to consumers. But the bill does not hike taxes on people earning less than $400,000.

One key feature closes the ‘carried interest loophole,’ which hedge fund managers use to pay a lower tax rate than salaried workers – but that provision has yet to get a blessing from Sen. Kyrsten Sinema (D-Ariz.), who has said in the past she opposes it. 

 ‘So their taxes are not going to go up?’ Faulkner pressed Manchin. 

‘Not at all. And you know one thing? How about the people that are going to be saving as far as on their Medicare, $288 billion, who are paying higher prices than they should?’

Manchin reached the deal with Senate Majority Leader Chuck Schumer, D-N.Y.

Manchin reached the deal with Senate Majority Leader Chuck Schumer, D-N.Y.

Senate Minority Leader Mitch McConnell (R-KY) trashed Manchin's deal and called it a tax hike

Senate Minority Leader Mitch McConnell (R-KY) trashed Manchin’s deal and called it a tax hike

President Biden is hoping to get a boost by Senate passage of 'reconciliation' legislation, but needs support of all 50 Democrats including Kysten Sinema to get it

President Biden is hoping to get a boost by Senate passage of ‘reconciliation’ legislation, but needs support of all 50 Democrats including Kysten Sinema to get it

He was referring to cost savings from provisions to allow Medicare to negotiate with drug companies for lower prices. 

Manchin was all-in on selling the deal, despite his prior opposition to the Build Back Better bill through long negotiations. 

Manchin also tried to shift the focus to the bill’s provisions on the corporate minimum tax.

Details on the Inflation Reduction Act of 2022

Senators Joe Manchin and Chuck Schumer’s new bill would raise $739 billion in new revenue through a variety of proposals:

$313 billion by implementing a 15-percent corporate minimum tax

$288 billion from empowering Medicare to negotiate lower drug prices 

$124 billion from strong IRS enforcement of tax law 

$14 billion from closing the carried interest loophole for money managers

It also includes $433 billion in new spending: 

 $369 billion on energy security and climate change 

$64 billion to extend health care subsidies for the Affordable Care Act

All this would leave $300 billion to reduce the deficit 

‘The bottom line is, how in the world can you be raising taxes when all we’re saying is the wealthiest corporations in America, 55 of them pay zero to help this great country of ours to defend ourselves?’ he said. 

He alluded to the 2017 Trump tax cuts that lowered the top corporate rate from 35 per cent to 21 per cent, although some major companies still manage to pay far less. 

Faulkner came back to the $400,000 issue – a key campaign promise of President Biden’s.

‘Are you saying that [Senate Minority Leader] Mitch McConnell and others in the Senate are wrong about those numbers and that Americans’ taxes are not going to go up?’ she asked.

‘Totally wrong,’ Manchin said. ‘Totally, absolutely wrong. Totally wrong.’

 McConnell ripped Manchin’s Inflation Reduction Act after he made the deal, and Republicans have taken aim at other legislation in response.

‘It turns out that proposing huge, job-killing tax hikes and more runaway spending during inflation and a recession doesn’t go over well,’ he sai

But the JCT study speculates about the effect of the package’s 15 percent minimum corporate tax rate, saying companies would pass the tax on to workers and shareholders.

It also factors in possible effects on the stock market that would affect company shareholders and people who rely on pensions and other similar funds. 

Positive effects of green energy and healthcare tax credits, as well as lower prescription drug costs, were not factored into Republicans’ calculations.

The JCT states that the minimum corporate tax would bring in more than $300 billion over a decade.

While the bill is not directly hiking the tax rate for Americans making less than $400,000, the indirect increases that the JCT anticipates has been enough for Republicans to heap criticism on the White House.

 

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Read more at DailyMail.co.uk

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