Senator Joe Manchin (D.W.Va.), explained why he supports a new spending bill. He said that the new spending package would not increase taxes nor worsen inflation, and admitted that he was wrong regarding the previous one.
Bret Baier pointed out that Manchin appeared on the same program last summer and said that the American Rescue Plan (a previous Democratic spending bill that failed to inflate) had been mentioned. Manchin later admitted that he was wrong.
“Why should Americans believe the claims that this bill will not increase inflation?” Baier asked.
Manchin said, “I’ll make sure I don’t make that same mistake again.”
Manchin stated emphatically, too, that the bill would not raise taxes despite opposition from groups like Americans for Tax Reform.
“It does not raise taxes,” Manchin said, explaining that “all it does is close loopholes.”
Manchin said that he had been doubtful that he would ever be able to reach a deal with Senate Majority Leader Chuck Schumer, D-N.Y., and that when he did reach an agreement, he “made sure there were no tax increases whatsoever.”
The new bill, known as the Inflation Reduction Act of 2022, is significantly scaled back from the Build Back Better Act that Democrats failed to pass. That bill would have cost roughly $3 trillion, while the current bill would cost $433 billion.
The new legislation provides a 15% minimum income tax on corporations with assets greater than $1 million. It is expected that it will raise $313Billion. To raise $124Billion, the IRS will intensify tax enforcement. It will also close the loophole that allowed carried interest to rise up to $14 billion.
He stated, “All it did was close loopholes. ”
Manchin also spoke Sunday about a subsidy for people with incomes up to $300,000. Sunday’s address by Manchin also included a subsidy available to people earning up to $300,000.
Manchin asserts that he still holds the same beliefs as today but claims the current bill does more than just address electric cars. American producers must pay for the subsidy.
“We shouldn’t be looking for China to make sure that they have a total stranglehold on us and that’s what we’re trying to break. And we’re going to break it as quickly as we can because we’re incentivizing,” he said.