pxhere
The Democrats' proposed tax reforms would raise the levy for households with incomes of $1 million or more by an average of about 11% in 2023. The increase is expected to reduce the tax burden on low- and middle-income families, CNBC reports.
The Joint Committee on Taxation estimated that millionaire families will pay an additional $96,000 in 2023, and their average tax rate is projected to increase from 30.2% to 37.3%. The Democrats' tax policy would result in an average tax cut for all households with incomes under $200,000. For example, those with incomes between $20,000 and $30,000 would get an 87% reduction in federal taxes in 2023, which would amount to more than $18,700 in tax savings, estimates the committee.
The Joint Committee on Taxation does not analyze the tax consequences using the $400,000 income cap. However, for a group with income between $200,000 and $500,000 in 2023, the tax burden would increase - by 0.3 percent, or $2900. The increase is likely to fall entirely on those with incomes above $400,000.
House Democrats on Monday, Sept. 13, proposed a series of tax reforms aimed at corporations and wealthy households to help fund climate initiatives and a major expansion of the U.S. social safety net. Their proposals would raise the maximum marginal corporate tax rate to 39.6% and increase the maximum federal rate on long-term capital gains from 20% to 25%. They would also impose an additional 3% tax on households with at least $5 million in annual income.
source: cnbc.com
The Joint Committee on Taxation estimated that millionaire families will pay an additional $96,000 in 2023, and their average tax rate is projected to increase from 30.2% to 37.3%. The Democrats' tax policy would result in an average tax cut for all households with incomes under $200,000. For example, those with incomes between $20,000 and $30,000 would get an 87% reduction in federal taxes in 2023, which would amount to more than $18,700 in tax savings, estimates the committee.
The Joint Committee on Taxation does not analyze the tax consequences using the $400,000 income cap. However, for a group with income between $200,000 and $500,000 in 2023, the tax burden would increase - by 0.3 percent, or $2900. The increase is likely to fall entirely on those with incomes above $400,000.
House Democrats on Monday, Sept. 13, proposed a series of tax reforms aimed at corporations and wealthy households to help fund climate initiatives and a major expansion of the U.S. social safety net. Their proposals would raise the maximum marginal corporate tax rate to 39.6% and increase the maximum federal rate on long-term capital gains from 20% to 25%. They would also impose an additional 3% tax on households with at least $5 million in annual income.
source: cnbc.com