ICYMI: Inflation Reduction Act Raises Corporate Taxes by Nearly $300 Billion, While Middle Class Pays Less
New Analysis from Congressional Joint Committee on Taxation Says Average Families Will Save
In Case You Missed It — A new analysis by the Congressional Joint Committee on Taxation says that U.S. corporations will pay nearly $300 billion more in taxes under the Inflation Reduction Act, while households earning less than $100,000 will see net tax cuts through 2025.
President Biden pledged that households making $400,000 or less would not see their tax burdens go up – and the Inflation Reduction Act delivers on that promise. In fact, the bill will lower costs for families and reduce their taxes.
Corporations will pay nearly $296 billion more in US federal taxes over the next decade, and middle-income households will see some tax cuts, under the tax-and-climate bill that is likely to become law in the coming days.
Households earning less than $100,000 will see net tax cuts through 2025, largely due to an extension of subsidies for Affordable Care Act premiums. After that, taxes for middle- and low-income households are largely unchanged.
Taxpayers earning at least $500,000, a group that’s more likely to own stocks, will see their taxes go up by about 1% next year, reflecting indirect tax increases tied to the corporate-tax hikes.
About Invest in America
Invest In America is a national rapid response operation advocating for robust public investment to rescue the economy from the COVID crisis and create prosperity for the future, and to fight back against fear-mongers who use deficit concerns as a scapegoat to starve American communities and businesses of resources.
The operation consists of two components: Invest in America, the charitable and public education arm, which is a fiscally sponsored project of Economic Security Project funded by the William and Flora Hewlett Foundation and Economic Security Project co-chair Chris Hughes; and Invest in America Action, the advocacy and social welfare arm, which is a fiscally sponsored project of Economic Security Project Action funded by Chris Hughes and the Omidyar Network.