Manchin REJECTS claim that Democrats’ spending bill hikes taxes, vows to speak with Kyrsten Sinema

West Virginia Democrat Senator Joe Manchin on Monday rejected the findings of a study that claimed his party’s latest spending proposal would raise taxes on Americans in every income bracket.

‘Agree to disagree,’ Manchin said when asked about the nonpartisan study shared by Republicans on the Senate Finance Committee on Saturday.

The moderate Democrat also told reporters that he would be speaking with fellow centrist, Senator Kyrsten Sinema, later the same day to persuade her to get onboard, according to CNN. 

With Democrats’ razor-thin 50-50 split in the Senate, every member needs to vote in lock-step for the budget bill for it to pass via reconciliation. The process would allow the package to bypass the need for Republican support.

But if the higher penalties become a reality it would put President Joe Biden, who promised to not raise taxes on Americans making less than $400,000 per year, in an uncomfortable political position.

The study by the Joint Committee on Taxation found that taxpayers bringing in less than $200,000 per year would see their taxes raised by $16.7 billion over a decade.

Speaking to reporters on Capitol Hill on Monday, Manchin vowed the Inflation Reduction Act of 2022 would not cause ‘one penny of change’ for American taxpayers making less than that amount. 

‘We looked at taking everything out that could be looked at to fanning the fires of inflation or inflaming it. And there’s nothing there,’ he said according to Fox News.

West Virginia Democrat Senator Joe Manchin spoke to reporters on Monday amid negotiations over his party’s latest attempt at passing a budget bill without Republican support

Manchin said the bill would not cause 'one penny of change' to the taxes of Americans earning less than $200,000 per year

Manchin said the bill would not cause ‘one penny of change’ to the taxes of Americans earning less than $200,000 per year

''We looked at taking everything out that could be looked at to fanning the fires of inflation or inflaming it. And there's nothing there,' Manchin told the press

”We looked at taking everything out that could be looked at to fanning the fires of inflation or inflaming it. And there’s nothing there,’ Manchin told the press

Manchin and Sinema’s opposition has derailed Democrats’ more progressive attempts to pass a spending bill, such as Build Back Better, as well as efforts to pass voting rights reform and abortion protections.

But all eyes are all on the Arizona senator – who was notably excluded from the latest deal and reportedly blindsided by its announcement. 

Sinema has not said whether she will support the bill yet, but it was reported by NBC Sunday that a source close to the lawmaker pointed out that it contains a revenue-generating tax that Sinema has long opposed.

It comes as all eyes on Capitol Hill fall to Arizona Senator Kyrsten Sinema, who has not yet said whether she will support the bill

It comes as all eyes on Capitol Hill fall to Arizona Senator Kyrsten Sinema, who has not yet said whether she will support the bill

At the same time, Manchin went to bat for the package on all five major news networks’ Sunday shows. During those appearances he also indirectly tried to court Sinema’s support. 

‘Senator Sinema is my dear friend. I have all the respect for her, she’s extremely bright and works very, very hard,’ Manchin said.

‘She has an awful lot in this piece of legislation, the way it’s been designed as far as the reduction of Medicare…She’s very involved in that and I appreciate that.’

He told CNN’s State of the Union that Sinema had ‘formed quite a bit of it and worked on it very hard.’

The projected tax increase comes from the JCT’s anticipated effect of the package’s 15 percent minimum corporate rate, the burden of which it suggests is passed down 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. 

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.

Manchin, who tanked his party's previous attempt at passing a budget bill, helped negotiate this latest package

Senate Majority Leader Chuck Schumer is aiming to get it passed as soon as possible

The bill, named the Inflation Reduction Act of 2022, was negotiated behind closed doors by Manchin (left) and Senate Majority Leader Chuck Schumer (right)

It could be President Joe Biden's last chance to score a victory without Republican support before the November midterm elections

It could be President Joe Biden’s last chance to score a victory without Republican support before the November midterm elections

GOP lawmakers also cited a budget model by the University of Pennsylvania’s Wharton business school that the legislation ‘would very slightly increase inflation until 2024 and decrease inflation thereafter.’

The package is Democrats’ latest attempt to usher a significant budget bill through Congress without Republican support before the November midterm elections.

It provides more funding for the IRS, green energy subsidies, expansion of Affordable Care Act (ACA) subsidies, and lowers prescription drug costs among other measures.

The Penn Wharton Budget Model estimates that the $740 billion bill – which includes roughly $433 billion in new spending – would reduce the deficit by $248 billion. 

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 

But a projection that includes making ACA subsidies permanent would shrink that deficit reduction to just $89 billion.

‘The more this bill is analyzed by impartial experts, the more we can see Democrats are trying to sell the American people a bill of goods,’ said Senator Mike Crapo, ranking member on the Senate Finance Committee.

‘Non-partisan analysts are confirming this bill raises taxes on the middle class and produces no meaningful deficit reduction when gimmicks are removed and the full cost is accounted for. 

‘It’s no wonder this bill, which was drafted behind closed doors, is being rushed through the Senate at record pace.’

In addition to raising taxes on Americans making less than $200,000, the JCT estimates that it would increase taxes on the $200,000 to $500,000 income bracket by $14.1 billion.

Americans making more than that would see a tax hike equivalent to $23.5 billion.

After 2031, Republicans claim Democrats’ green energy tax credits would force Americans bringing in less than $400,000 to ‘bear as much as two-thirds of the burden of the additional tax revenue collected that year.’ 

But the JCT study, which the GOP commissioned, omits the effects that healthcare and green energy credits as well as lower prescription drug costs have on everyday Americans.

The bill was negotiated behind closed doors by West Virginia Democrat Senator Joe Manchin and Senate Majority Leader Chuck Schumer.

Manchin, who tanked multiple previous attempts by his party to pass a budget bill via reconciliation, appeared on all five major news networks’ Sunday shows to promote the legislation.

The reconciliation process would allow Democrats to pass the bill with just their razor-thin majority in the Senate plus Vice President Kamala Harris’ tie-breaking vote.

But that means every member must vote in lock-step for it to pass.

‘I agree with my Republican friends,’ Manchin told NBC’s Meet The Press on Sunday morning. ‘We should not increase taxes, and we did not increase taxes.’

He also denied that his support for the bill would undermine future efforts at bipartisanship.

‘You can walk and chew gum, you have a balanced approach. These are solutions Americans want. We were able to provide these solutions. Let’s not make them political,’ Manchin said.

Read more at DailyMail.co.uk

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