Crapo admits IRA won't raise taxes. (user search)
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  Crapo admits IRA won't raise taxes. (search mode)
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Author Topic: Crapo admits IRA won't raise taxes.  (Read 942 times)
TheDeadFlagBlues
Junior Chimp
*****
Posts: 5,990
Canada
« on: August 05, 2022, 10:44:19 PM »

raising taxes vs. raising tax rates.  You understand the distinction?  
  
Plus, Biden himself is saying it's going to raise taxes.  The disagreement is whether it will hit the middle class.


What, exactly, is the distinction? If tax rates do not increase, there is no mechanism for someone to pay more taxes to the government unless they earn more money. You can say that someone would indirectly pay more taxes to the government through corporate tax rates and the like but the typical American doesn't see this as a "tax" and it's very disingenuous for Republicans to try to spin possible indirect tax increases as direct tax increases.
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TheDeadFlagBlues
Junior Chimp
*****
Posts: 5,990
Canada
« Reply #1 on: August 06, 2022, 10:03:29 AM »

raising taxes vs. raising tax rates.  You understand the distinction?  
  
Plus, Biden himself is saying it's going to raise taxes.  The disagreement is whether it will hit the middle class.


What, exactly, is the distinction? If tax rates do not increase, there is no mechanism for someone to pay more taxes to the government unless they earn more money. You can say that someone would indirectly pay more taxes to the government through corporate tax rates and the like but the typical American doesn't see this as a "tax" and it's very disingenuous for Republicans to try to spin possible indirect tax increases as direct tax increases.

A person can pay more in taxes at the same tax rate if they lose the ability to deduct.  Or they can pay more in sales taxes if prices go up.  Maybe Crapo isn't talking about that though, I don't know. I'd be interested in knowing what he was claiming, but I only have this 16 second gotcha clip put out by the Democrats courtesy of the OP.  I tried to look up the press conference myself but searching "IRA", "finance", and "republicans" gave me something completely different.

First, ending deductions pushes up the effective tax rate and this would be colloquially understood as a "tax increase", as it would be a direct tax increase. While sales taxes are linked to the price of a good, in aggregate, the level of sales tax paid can only increase with the overall price level and the share of sales tax paid in terms of income will basically be stable, though there can be wrinkles here. Overall though, politicians do not directly set inflation.

Crapo's point relates to the corporate minimum tax. It could indirectly hit some American because it would create a floor for taxes on corporations, which could result in wage restraint or decreases in hiring etc. Claiming that an indirect effect of a tax increase is a tax increase is extremely misleading - it's like claiming that slashing taxes on corporations is actually cutting taxes for the middle class, a brazen lie. To Crapo's credit, he was being a bit honest, but, even then,  the balance of research shows corporate tax increases largely hit dividends, executive compensation and the like.

Overall, I'm surprised more Republicans aren't criticizing increased funding to the IRS, which is a better line of attack than simply lying, as Americans hate the IRS.
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