List of Biden Tax Hikes Hitting Americans on Jan. 1

[Ubiquitous]

President Biden and congressional Democrats imposed a long list of tax
increases as part of their “Inflation Reduction Act” passed in 2022.

On Jan. 1, 2023 the following Democrat tax hikes will take effect:

$6.5 Billion Natural Gas Tax Which Will Increase Household Energy Bills


Think your household energy bills are high now? Just wait until the
three major energy taxes in the Inflation Reduction Act hit your
wallet. The first is a regressive tax on American oil and gas
development. The tax will drive up the cost of household energy bills.
The Congressional Budget Office estimates the natural gas tax will
increase taxes by $6.5 billion.

The tax hike violates President Biden’s tax pledge to any American
making less than $400,000 per year. Biden administration officials have
repeatedly admitted taxes that raise consumer energy prices are in
violation of President Biden’s $400,000 tax pledge.

A letter to Congress from the American Gas Association warned that the
methane tax would amount to a 17% increase on an average family’s
natural gas bill. Democrats have included a tax in the bill despite
retail prices for energy surpassing multi-year highs in the United
States.

$12 Billion Crude Oil Tax Which Will Increase Household Costs

Democrats are imposing a 16.4 cents-per-barrel tax on crude oil and
imported petroleum products that will be passed on to consumers in the
form of higher gas prices.

The tax hike violates President Biden’s tax pledge to any American
making less than $400,000 per year.

As noted above, Biden administration officials have repeatedly admitted
taxes that raise consumer energy prices are in violation of President
Biden’s $400,000 tax pledge.

As if it weren’t bad enough, Democrats have pegged their oil tax
increase to inflation. As inflation increases, so will the level of
tax.

The non-partisan Joint Committee on Taxation (JCT) estimates the
provision will raise $12 billion in taxes.

$1.2 Billion Coal Tax Which Will Increase Household Energy Bills

The tax hike more than doubles the current excise taxes on coal
production. Under the Democrat proposal, the tax rate on coal from
subsurface mining would increase from $0.50 per ton to $1.10 per ton
while the tax rate on coal from surface mining would increase from
$0.25 per ton to $0.55 per ton.

JCT estimates that this will raise $1.2 billion in taxes that will be
passed on to consumers in the form of higher electricity bills.

$74 Billion Stock Tax Which Will Hit Your Nest Egg — 401(k)s, IRAs and
Pension Plans

When Americans choose to sell shares of stock back to a company,
Democrats will impose a new federal excise tax which will reduce the
value of household nest eggs. Raising taxes and restricting stock
buybacks harms the retirement savings of any individual with a 401(k),
IRA or pension plan.

Union retirement plans will also be hit.

The tax will put U.S. employers at a competitive disadvantage with
China, which does not have such a tax.

Stock buybacks help grow retirement accounts. Raising taxes and
restricting buybacks would harm the 58 percent of Americans who own
stock and more than 60 million workers invested in a 401(k). An
additional 14.83 million Americans are invested in 529 education
savings accounts.

Retirement accounts hold the largest share of corporate stocks,
accounting for roughly 37 percent of the outstanding $22.8 trillion in
U.S. corporate stock, according to the Tax Foundation.

In 2017, corporate-sponsored funds made up $4.45 trillion in market
value; union-sponsored funds accounted for $409 billion; and public-
sponsored funds, which benefit teachers and police officers, added up
to $4.25 trillion.

When companies perform stock buybacks, these investors are the ones who
benefit. A tax on buybacks could dissuade companies from conducting
this action and negatively impact retirement savings.

American companies will face significant compliance costs — a boon to
expensive white-shoe law firms — the burden of which will be passed on
to working households.

$225 Billion Corporate Income Tax Hike Which Will Be Passed on to
Households

Democrats imposed a 15 percent corporate alternative minimum tax on the
financial statement income of American businesses reporting $1 billion
in profits for the past three years. These American companies employ
millions of Americans.

The cost of this tax increase will be borne by working families in the
form of higher prices, fewer jobs, and lower wages.

A Tax Foundation report from last December found a 15 percent book tax
would reduce GDP by 0.1 percent and kill 27,000 jobs.

Preliminary cost estimates from the Congressional Budget Office found
the provision would increase taxes by more than $225 billion.

According to JCT’s analysis, 49.7 percent of the tax would be borne by
the manufacturing industry at a time when manufacturers are already
struggling with supply-chain disruptions.

Tax Foundation also warned that current supply chain issues could be
worsened by the book tax’s disproportionate burden on key industries.
The report concluded that “the coal industry faces the heaviest burden
of the book minimum tax, facing a net tax hike of 7.2 percent of its
pretax book income, followed by automobile and truck manufacturing,
which faces a 5.1 percent tax hike.”

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Let's go Brandon!