President Joe Biden's prized Inflation Reduction Act will take effect on Jan. 1, 2023, including a range of new tax increases that will affect U.S. homeowners, retirees, and small businesses.
On Thursday, Americans for Tax Reform outlined the increases of taxes targeting natural gas, oil, coal, stocks, and corporations, all according to various House and Senate committees' top-line estimations.
The Congressional Budget Committee said a new regressive tax on natural gas development would increase government revenue by around $6.5 billion, causing a soar in household energy bills.
A 2021 letter from the American Gas Association warned the hike would increase the average family's natural gas bill by 17%, over $100 more annually. The group also estimated the measure "could put more than 100,000 American jobs at risk."
But that isn't the only new tax set to affect household costs. A 16.4 cents-per-barrel tax on crude oil and imported petroleum products is estimated to cost roughly $12 billion by the Joint Committee on Taxation.
Another energy-related fee, this time targeting coal, will raise $1.2 billion in taxes. It raises the tax rate on coal from subsurface mining from $0.50 per ton to $1.10 per ton and the tax rate on coal from surface mining from $0.25 per ton to $0.55 per ton.
Two finance and business-related taxes will also likely affect U.S. taxpayers. The first, roughly $74 billion in new stock taxes, will directly affect 401(k)s, individual retirement arrangements, and Pension Plans.
Further, ATR predicts that a $225 billion corporate income tax hike will be passed onto American households, citing a Tax Foundation report from last year indicating the 15% imposed would reduce GDP by 0.1% and eliminate 27,000 jobs.