White House denies Manchin spending bill will raise taxes on Americans making less than $400k
New analysis shows Biden's bill will raise taxes on individuals making less than $10,000 annually
Former Council of Economic Advisers chairman Kevin Hassett analyzes the president's Inflation Reduction Act on 'Cavuto: Coast to Coast.'
The White House denied Monday that the $700 billion climate change and tax package spearheaded by Sen. Joe Manchin, D-W.Va., will break President Biden's campaign pledge not to raise taxes on individuals making less than $400,000 annually.
White House press secretary Karine Jean-Pierre was by asked by Fox News' Peter Doocy about a new report by the nonpartisan Joint Committee on Taxation (JCT) analyzing the bill. The report shows that Americans making less than $10,000 annually and those making above $30,000 would see an uptick in taxes.
"It's not correct because it is incomplete," said Jean-Pierre. "The JCT report that we're currently seeing is incomplete because it omits the actual benefits that Americans would receive when it comes to prescription drugs [and] when it comes to the lowering energy costs, like utility bills."
White House press secretary Karine Jean-Pierre denied Monday that the $700 billion climate change and tax package spearheaded by Sen. Joe Manchin, D-W.Va., will break President Biden's campaign pledge not to raise taxes on individuals making less tha … (Ting Shen/Bloomberg via Getty Images / Getty Images)
Last month, Senate Democrats struck a deal to spend $433 billion over the next decade on climate change, while raising more than $739 billion in new revenue. The new money will largely come from a minimum 15% tax on corporations, strengthened IRS enforcement and cost savings from allowing Medicare to negotiate the price of some prescription drugs.
More than $300 billion of the new revenue is slated to go toward deficit reduction.
Democrats have heralded the deal as a huge win for Biden and Americans besieged by inflation and an economy many believe may have entered into recession.
MANCHIN CLAIMS $700B DEAL WITH SCHUMER WON'T ADD TO INFLATION
The JCT, which is made up of bipartisan lawmakers from both the House and Senate, has a different view. The group found that Americans making less than $10,000 per year would see a 0.3% tax hike starting in 2023.
Overall, starting in 2023 taxes will increase by $16.7 billion for Americans earning less than $200,000.
Biden has said that the bill will not raise taxes on anyone making less than $400,000 a year. (AP Photo/Lee Jin-man, Pool / AP Newsroom)
"The more this bill is analyzed by impartial experts, the more we can see Democrats are trying to sell the American people a bill of goods," said Sen. Mike Crapo of Idaho, the top Republican on the Senate Finance Committee.
Republicans also note that the bill breaks a pledge Biden made while campaigning for the White House in 2020. During that campaign, Biden repeatedly stressed that he would not directly raise taxes on individuals making below $400,000. Instead, he claimed the tax burden would be borne entirely by those that could afford it most: the wealthy.
WASHINGTON, DC - OCTOBER 27: Sen. John Barrasso (R-WY) speaks alongside other Republican Senators during a press conference on rising gas an energy prices at the U.S. Capitol. (Photo by Samuel Corum/Getty Images / Getty Images)
The president repeated that pledge last week when discussing the $700 billion climate bill.
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"This bill will not raise taxes on anyone making less than $400,000 a year," said Biden. "And I promise — a promise I made during the campaign and one which that I ha- — that I’ve have kept."
FOX Business' Thomas Catennaci contributed to this report.