(CNSNews.com) - White House Press Secretary Karine Jean-Pierre accused Republicans of being “dishonest” about the impact that the Inflation Reduction Act’s stock buyback provision will have on the retirement accounts of Americans and how the hiring of 87,000 new IRS agents will hurt “ordinary Americans.”
“There’s been two Republican criticisms of the IRA. One is that the stock buyback provision will hurt Americans’ 401(k)s. The other is that the increased funding for the IRS will not just hit tax-cheat millionaires and corporations but dramatically increase the investigations of ordinary Americans who don’t have accountants and lawyers to deal with audits. So, could you address both of those criticisms?” a reporter asked the press secretary during a gaggle on board Air Force One en route to Lexington, Ky.
“So the first thing is: It’s like dishonest water that the Republicans are carrying for tax welfare for the rich and the big corporations that we’ve seen all — all week, last week. So, nothing new here. This is not a tax on the middle class or retirement savings though,” the press secretary said.
“That one percent surcharge — as you know well, Justin — on stock buybacks, which is when corporations purchase their own stock, is paid by large publicly traded corporations. A number of experts have argued that CEOs use stock buybacks to enrich themselves to the detriment of the long-term growth of the company,” Jean-Pierre said.
“The truth has been recognized by both Republicans and Democrats, both sides of the aisles, that companies can do two things with cash holdings: invest in the growth of their businesses, which helps lead to more jobs, higher salaries, and other prices; or use it to buy back stock just to pad the finances of their wealthiest shareholders,” she said.
“So, again, the claims from Republicans is just purely false. That is not what it does, and we know that because we’ve heard that from both sides of the aisle. On the IRS piece, look, this is just the latest example, again, of those who do nothing to protect tax welfare for the rich at the expense of everything else,” the press secretary said.
“Their blatant lies — congressional Republicans came to the defense of corporations earning more than $1 billion per year who — who use loopholes to pay zero dollars in taxes. The American people don’t think that’s fair, and we know that. That is a popular thing that we know Americans think, but apparently congressional Republicans think it’s a hill to die on, and so, again, it’s another false claim from them,” Jean-Pierre added.
When asked how soon Americans can actually expect to see an impact, even on prescription drug prices and other items” from the bill once it passes, the press secretary said, “Yeah, so, as you know, the ACA provisions and lowering premiums, that’s going to have an effect right away, and that’s incredibly important, and there will be parts of — there will be parts of the legislation that we’ll see next year, but, example: ACA policy will be felt with continuing to lower costs — lowering healthcare costs.
“This immediately — this will immediately act to lower energy costs, for example, with tax rebates being felt right away, and the prescription drug benefits will start kicking in next year,” Jean-Pierre said.