Forbes has published an article, “TPC: The Ways & Means Reconciliation Bill Would Raise Taxes on High Income Households, Cut Taxes on Average For Nearly Everyone Else”, which discusses major provisions of the House Ways & Means Committee’s budget reconciliation tax bill. The article begins as follows:
All major provisions of the House Ways & Means Committee’s budget reconciliation tax bill would cut 2022 taxes on average for households making $200,000 or less. At the same time, the bill would raise taxes substantially for those making $1 million or more, according to a new analysis by the Tax Policy Center.
The bill’s individual income, payroll, and estate tax provisions alone, however, would cut taxes on average for households making $500,000 or less while still increasing them significantly for the highest income households.
As a result of the individual income, payroll, and estate tax changes, only a handful of households making $500,000 or less would pay more in taxes in 2022 than under current law. However, including all major provisions, including corporate income and excise tax increases, about 58 percent of all households and nearly 80 percent of households making between $200,000 and $500,000 would pay more. About two-thirds of those making between $100,000 and $200,000 would face somewhat higher tax bills—about $650 on average.
Posted by Anthony Tran, Associate Editor, Wealth Strategies Journal