Inflation is the highest.
It's been in four decades,
which is cause for alarm and reason for
lawmakers to address it head on and in the
two days since Senate Democrats passed
the Inflation Reduction Act and sent
it to the House for its deliberation,
we've heard all the snippets and sound bites
on how the bill is not really what they say.
It is. Of course, nearly all of that talk
is coming from those who voted against it,
like Idaho Senators Mike Crapo and Jim Risch.
They say, despite its name,
the 700 page bill is not
about reducing inflation,
but just increasing.
Taxes and scrutiny over who is paying them.
President Biden promised those increased
taxes would not be imposed on those
making less than 400,000 a year.
Critics say the president is wrong and the
act will actually raise taxes on everyone.
Senator Risch claiming such
in his explanation of why he
voted against it on Sunday,
these tax hikes won't affect just
the highest tax bracket Americans
making as little as $30,000 per year
will pay more to federal government
because of this bill and Senator
Crapo saying nearly the same thing.
A week ago.
And during the 10 year period,
the average tax burden increases would
increase for nearly every income category.
Crapo, by the way,
quoting the Joint Committee on Taxation,
who put out the review of the bill.
A committee on which Crapo happens to sit.
Well, those two statements
solicited these questions from you,
Laura,
asking us to explain Senator Crapo's
comment that anyone making 30,000
or more on taxes on or will have
their taxes increased under the bill.
Where is he seeing this increase?
Rick wanting us to tell him how the
act will impact families that have
$30,000 income as rich as stated,
and Kim well.
Can you please Fact Check Rich's
comment about new act about the new act?
Increasing taxes for folks as low as $30,000.
Well, we reached out to both senators,
Crapo and Risch,
and neither responded to our questions
or requests for an interview.
But chief political reporter Joe Paris
was able to speak with at Boise,
accountant to in fact fact checked Fact
Check those claims about taxes going up.
For those making less than 400,000 a year.
National conversation continues to
center on the Inflation Reduction
Act and depending on what side of
the aisle you're on, you may hear
two very different conversations.
Major question, though about the Act,
does it keep the promise
of President Joe Biden,
who said the act would not raise taxes on
people making less than $400,000 a year?
Critics say no supporters say yes,
so we went, nonpartisan for an analysis
on the ACT Boise CPA Jeff Beebe says
he expects calls soon from clients.
All this week. Yeah, ones that
really starts getting into the press.
All I'll have people start to call me
a major question. He will likely get.
How will this act impact taxes?
We asked Beebe to explain some
of the language inside of it.
Cash rates aren't changing as part
of the the ACT, but there are some
things that for corporations they're
raising taxes which they'll end
up passing through to consumers.
So while you may not be paying.
Texas directly.
You'll be paying more for it
while the individual tax rates for those
making less than $400,000 doesn't change,
the act does include a new 15% minimum
tax on corporations they earn more than
a billion dollars in annual profits.
The tax works to focus on some 200 U.S.
companies that avoid paying the
standard 21% corporate tax rate,
including some companies that
end up paying no taxes at all
due to clever maneuvering.
Experts say.
Don't expect the major corporations to
bite the bullet on paying new taxes.
You take Amazon. Example very early on,
Amazon didn't make any money for years,
so they had a big net operating loss
carryover that they've been using up.
Now that they're profitable.
But it still is an offset
that was legal to use, but.
Very unpopular politically, so it's
focused on companies like that or that.
They're reinvesting large amounts of their
income into other things that are deductions.
They don't want want all these
deductions getting away.
They're not going to just take
a hit to the bottom line.
They're going to pass it
through to consumers.
So what could that look like?
Usually it would be a a price increase.
It might be.
Lowering the rate of wage increases,
although with our current
environment of tight.
Employment you can't mess
with people's wages too much.
It's gonna be in in price increase.
So while tax rates might not change low
and medium, earning Americans could see
a cost associated with the new act.
But tax credits built into the Act
for things like green energy and
electric Cars or Medicare benefits.
Well, those also are supposed
to offset those costs.
Phoebe says he's also watching another
part of the Act, an $80 billion investment,
into the Internal Revenue Service.
The IRS. The goal is to crack down on.
It's honest tax filings that cost
the country millions of dollars.
Well, they're talking about
hiring up to 80,000 employees,
which is almost doubling the size of the IRS,
and which will make a big impact on IRS
audits. IRS has kind of a tough job.
They enforce a very unpopular law.
Everybody understands that the
government needs money to operate.
They just don't want it to be by money.
I want it to be somebody else's money.
So the IRS has more resources.
I guess the logic here would be OK,
less less under reporting, right?
Yeah, they'll go after that under reporting,
and that's under reporting from
individuals is 250 billion.
It's much larger for from individuals
and corporations, or payroll taxes.
And who's that gonna go to?
That's mostly gonna be people
that make under $400,000 a year.
Again, her son attacks increase
because that's tax law that exists.
It's just people aren't paying it,
and the IRS is going to try and collect.
It will be focused on people making
under 400,000 because there are more.
More of those people than
there are over 400,000.
And there's a lot of I guess intricacy
to get into this entire thing.
And of course we don't have time
to go through it right now.
But if you wanted to read
more and I recommend you do,
go to our website rightnowktvb.com,
we have an explanation of what's
in the act, how it works,
why it works that way as well as we
track this whole thing through Brian.
It's important to know this is non
God to the the president's desk
that still technically has to pass
another house over in Congress
when the president does sign it,
that would start triggering,
you know differences for CPA's
across the country.
They're going to look at things,
but
we'll wait and watch for now and again.
Would love to sit down with senators,
Crapo and Risch to find out get a
little bit more explanation as to
why they voted no and why they're
saying the same things they're
saying about it right? Thanks Joe.