Last week, the Inflation Reduction Act passed in the Senate, thereby ensuring it heads to Joe Biden’s desk. This was a victory for Democrats who cheered it as a commonsense measure that’s going to benefit the economy, healthcare, and climate change.
Republicans, on the other hand, warn that Democrats uniformly voted to increase taxes and make inflation worse amid a recession. The GOP is also pointing out how Biden will shortly legalize a bill that adds 87,000 brand new IRS agents to the government.
Amid consistent backlash against new resources for the IRS, Treasury Secretary Janet Yellen is now directly weighing in on critics of the Inflation Reduction Act in a new letter.
A Close Look at Yellen’s Letter
Days ago, the Treasury Secretary wrote a letter, branding people who say the IRS will go after the middle class and small businesses as “misinformation” spreaders. Yellen then claimed she’s personally directed all new IRS resources to go toward probing high earners and large companies.
The letter from the Treasury Secretary next goes on to claim that people making less than $400,000 per year won’t face a higher probability of IRS audits.
The Inflation Reduction Act includes much-needed funding for the IRS to modernize and improve taxpayer service, and will increase equity in the tax system by enforcing tax laws against high-earners and large corporations who today do not pay what they owe. https://t.co/VIZ96qkiR0
— Secretary Janet Yellen (@SecYellen) August 11, 2022
However, many Republicans noted that Joe Biden once asserted no one making less than $400,000 would face tax increases under his administration.
This, too, is demonstrably inaccurate. Still, Yellen insists that what the Inflation Reduction Act stands for is bridging the “tax gap” between the everyday American vs. the rich and powerful.
A Poor Track Record of On-the-Record Claims
Despite the claims in Yellen’s letter, many Americans just don’t believe her.
Republicans especially are pointing out Yellen’s history of statements that were later proven as false. The most significant example is inflation with Yellen previously dismissing it as “transitory” and nothing to worry about.
Democrats are pointing to a letter from Secretary Yellen as proof their Inflation Act won't lead to new audits for hardworking families.
Secretary Yellen also said inflation was "transitory."
If that were true, we would have no reason to be here right now. pic.twitter.com/02j0n5NZ15
— Rep. Adrian Smith (@RepAdrianSmith) August 12, 2022
In real-time, everyday people are faced with inflation that’s actually increased since 2021. In light of this, conservatives are already warning that a repeat of this will happen with the IRS once the Inflation Reduction Act is the law.
Americans also haven’t forgotten the extent to which the IRS went after conservatives when former President Obama was in power.