Joint Committee on Taxation (JCT) Proposes Raising Taxes for Americans Making Less Than $400,000 Per Year

The JCT estimates:

• Taxes will rise by $16.7 billion in 2023 for all American taxpayers whose income is less than $200,000. The almost $17 billion tax is aimed directly at low- and middle-income earners next year, among stagflation.
o The $17 billion tax verifies the failure of the Biden pledge to not raise taxes on Americans making less than $400,000.
o Taxpayers making between $200,000 and $500,000 would see an additional $14.1 billion increase.
o JCT data reveals that 98% of all tax returns filed in the $200,000 and $500,000 range are filed by earners between $200,000 and $400,000. Likewise, 75% of earners in the $200,000 to $500,000 category make less than $400,000; therefore, it is probable to assume at least 50% of all tax revenue raised in 2023 would be from Americans making less than $400,000.
• The average tax rate for virtually every income category would rise over the next ten years.
• By 2031, the new green energy credits and subsidies will benefit higher income earners even more, forcing Americans making less than $400,000 to carry almost two-thirds of the added tax revenue collected that year.

Take a look at the JCT’s distributional effects analysis and the JCT’s revenue table

Read the United States Senate Committee on Finance’s Democrats’ Proposals Increase Taxes on Millions of Americans