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

• Sen. Manchin's surprise spending bill would put billions toward the climate and prescription drug prices.

• The bill, aimed at reducing inflation, is paid for by taxes on corporations and wealthy investors.

• Most taxpayers won't see a change, and might even get some rebates for energy efficiency.

It was the deal heard around the world: Sen. Joe Manchin, a centrist Democrat who wields his majority-making vote to heavily influence Democrats' agenda, had negotiated a package with Senate Majority Leader Chuck Schumer.

The Inflation Reduction Act of 2022 is, as the name suggests, aimed at bringing down inflation. It would put billions towards climate spending and slash prescription drug prices. Rather than hiking taxes on individuals, or imposing a broad surtax on the ultra-wealthy — both previously proposed to cover spending — the package is narrowly targeting ultra-wealthy investors and corporations, while also stepping up IRS enforcement. That income will help pay for assistance to Americans who want to buy electric vehicles or make energy efficient upgrades to their homes.

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

Economists largely say the vast majority of Americans are spared from tax increases under the legislation. Democrats have sought to wall off most families except the very richest ones from getting hit with new taxes.

Kimberly Clausing, a former senior Treasury Department official, said the average American's tax bill is "absolutely" not going to be affected under the legislation.

"Are you a tax cheat? If not, the IRS money won't affect you," Clausing, a tax professor at the UCLA School of Law, told Insider. "Are you a big corporation that earns over a billion dollars and pays less than 15%? If not, there's no increase in your taxes."