President Biden signed this bill into law on August 16th….and the lies just keep on coming! Republicans are lying about the Inflation Reduction Act to try to distract from the fact that they sided with entrenched special interests instead of voting to lower costs. Here’s facts that you can use to fight back against their false claims:
- Since 2010, Republicans in Congress have gutted the IRS, reducing top auditors dedicated to complex returns by 40%, and in turn helping billionaire tax cheats avoid paying taxes. In the last decade, the audit rate for those making $5 million or more dropped from 16% to 2%. Analysis from the Treasury Department projects a tax gap of as much as $163 billion a year from the wealthiest one percent who have evaded paying their taxes
- The Inflation Reduction Act will finally give the IRS the resources it needs to make sure big corporations and the wealthiest one percent pay their fair share. And none of those resources will be used to increase audit scrutiny on the middle class or on small businesses.
- Trump-appointed IRS Commissioner Charles Rettig confirmed on August 4 that “audit scrutiny” would not be raised on middle-class families or small businesses and that “resources [will] go toward enforcement against those with the highest incomes.”
- On August 10, Treasury Secretary Janet Yellen directed the IRS that “audit rates will not rise relative to recent years for households making under $400,000 annually” and that “enforcement resources will focus on high-end noncompliance.”
- Republicans know they’re on the wrong side of this issue so they’re resorting to boldface lies falsely claiming this legislation will raise taxes on middle-class families. This is unequivocally false.
- No families making below $400,000 will see an increase in their taxes. There are no individual tax rate increases in the bill.
- Instead, middle-class families earning less than $100,000 will see net tax cuts thanks to the Inflation Reduction Act.
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