Democrats' proposed tax hikes probably won't affect you — in fact, they'll help you buy an electric vehicle and put solar panels on your house

The deal was made by Sen. Joe Manchin, a centrist Democrat who wields his majority-making vote to influence Democrats' agenda.

The act is meant to bring down inflation. It would help the environment and cut prescription drug prices. Instead of hiking taxes on individuals, or imposing a broad surtax on the ultra-wealthy, the package is narrowly targeting ultra-wealthy investors and corporations. Americans who want to buy electric vehicles or upgrade their homes will be helped by that income.

"We will pay for all of this by requiring big corporations to pay their fair share of taxes, with no tax increases for families making under $400,000 a year," President Joe Biden said.

The majority of Americans are spared from tax increases according to economists. Democrats want to keep the rich from paying new taxes.

The average American's tax bill won't be affected by the legislation according to a former senior Treasury Department official.

Do you cheat on your taxes? The IRS money won't affect you if you don't, according to a tax professor. Are you a big corporation that pays less than 15%? There won't be an increase in your taxes.

The Democrats want to close the carried interest tax break that allows hedge fund managers and venture capitalists to pay a lower tax rate. The provision only affects investors who make over $400,000.

The person at home won't have to pay more in taxes. A senior legal tax analyst at the Center on Budget and Policy Priorities told Insider that it was a loophole for highly paid people who buy and sell companies.

The carried interest loophole is something Manchin wants to close. In an interview with a West Virginia reporter, the senator named it.

Republicans assailed the measure and think that fellow Democratic centrist Sen. Sinema may not like it.

Steve Rosenthal is a senior fellow at the Tax Policy Center.

The package has credits to encourage clean energy adoption. Taxpayers would be able to get thousands of dollars in rebates for energy efficient home improvements.

They will be able to get tax credits that will help them buy an electric vehicle. Americans can get a tax credit of up to $4,500 for buying used electric vehicles. The amount goes up to $7500 for new EV's.