Under Biden Tax Plan, Most Americans Making Less Than $75,000 Won’t Owe Any Taxes
A combination of the March 2021 stimulus package and new tax proposals from President Joe Biden have led to low- and middle-income Americans paying less in taxes while those in the country’s highest tax brackets are paying slightly more. Americans making less than $75,000 annually will often owe nothing in federal income taxes.
Democrat tax proposals are also kind to Americans making between $75,000 and $100,000, as they will only pay a 1.8% tax rate, as predicted by the Joint Committee on Taxation (JCT). The committee also notes that Americans making more than $500,000 will pay more than two-thirds of all income taxes collected this year.
The tax credit system introduced in the American Rescue Plan stimulus package also means that Americans making between $30,000 and $40,000 will owe nothing in income taxes and receive back an average of $3,500 per return.
The Democrat and Biden tax changes mark a notable turning point for Americans making between $50,000 and $70,000. Under tax policies from Republicans and former President Donald Trump, Americans in the $50,000 to $70,000 bracket owed $41 billion to the IRS, but under Democrat proposals they will actually be paid $33 billion.
“JCT’s report is proof that — both directly and indirectly — Democrats have been delivering relief from this terrible pandemic to Americans in need,” said House Ways and Means Committee Chair Rep. Richard Neal (D-Massachusetts). “Levying taxes in a fair, progressive manner, without taxing the lowest income taxpayers into poverty is how the tax code should work, and a top priority for us.”