Biden’s safety net package would raise, not lower, taxes on millionaires, new estimates show

A nonpartisan scorekeeper originally suggested that the bill would give people making over $1 million a year a net tax cut in 2022.

WASHINGTON – President Joe Biden’s Build Back Better package will increase, but not reduce, taxes on wealthy Americans, according to the Joint Tax Committee in a major correction to its initial review.

The committee, an official tax law scorer, predicted that $ 1.7 trillion in net security and climate change would give people more than $ 1 million a year in tax cuts in the country. 2022 revenues will increase to 3.2 percent next year.

The difference is due to changes to the state bill and local tax cuts, called SALTs, that Democratic leaders added at the last minute for lawmakers to vote in New Jersey, New York and California. The bill would increase the state and local tax limit from $ 10,000 to $ 80,000.

The SALT cap was created by the Republican tax bill of 2017 and is seen as a way to lower corporate taxes while meeting an increase for landowners in the federal states, which have higher tax rates. in the U.S. Local.

The committee’s review prior to the amendment found that SALT provided provisions under which two-thirds of the population would receive more than $ 1 million a year in tax cuts.

“The Joint Tax Committee staff have found an error in estimating the average tax rate for calendar year 2022 for taxpayers in excess of $ 500,000,” their website says.

The new study shows that the average tax rate for millionaires will rise to 4.1 percent in 2023 and 3.3 percent in 2025.

Last week, the Democratic House of Representatives passed legislation on expanding the security website and mitigating climate change, a major step forward in pushing Biden’s legislation near the border. Lana kesi. The bill is now in the Senate, which is expected to be voted on before Christmas.

The bill that would have lower taxes for wealthy Americans has been a big factor for some on the left, including Rep. Jared Golden of Maine, the only House Democrat who voted against the bill, and the senator. Bernie Sanders, Vt.

Back to top button