In recent days, critics of the Inflation Reduction Act (IRA) have used a misleading and incomplete analysis to claim that the breakthrough legislation would be a “tax increase on everyone.” These opponents’ claims are based on an analysis by the Joint Committee on Taxation (JCT)—released by Senate Finance Committee Ranking Member Mike Crapo (R-ID) on July 30, 2022—that assumes that taxes levied on large corporations that currently pay little or no corporate income taxes represent a tax increase on individuals and families.
However, this simply is not true. The IRA closes tax loopholes exploited by large corporations that currently pay little or no tax and by wealthy investment fund managers. It also cracks down on tax dodging, especially by the wealthy, which currently accounts for the largest share of unpaid taxes. Contrary to critics’ claims, the IRA does not raise taxes on individuals earning less than $400,000 or on any but the largest and most profitable corporations.
The above excerpt was originally published in the Center for American Progress.
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