The Biden administration is expecting to collect 28% more in individual income taxes this year than last – an explosion of about $600 billion, according to a new report.
It was Washington Examiner columnist Paul Bedard who has written about a budget analysis presented by the administration to Congress.
He said the U.S. Treasury is expecting a 28% hike in collections of individual income taxes this year.
There’s going to be another huge boost in 2025 when the tax cuts created by President Trump expire, unless something is done to continue them, the report said.
“The latest Congressional Budget Office report revealed expectations of $2.6 trillion in individual income taxes this year, up from $2 trillion last year,” Bedard explained. “Not only is that the highest ever, but it is also the biggest share of gross domestic product since income taxes began.”
The report itself explained, “In 2021, receipts from individual income taxes totaled $2.0 trillion, or 9.1% of GDP. Under current law, and on the basis of receipts observed through late April of this year, CBO expects individual income tax receipts to rise by 28% in 2022, to $2.6 trillion. At 10.6% of GDP, that total is expected to be the highest amount of individual income tax receipts recorded since 1913, when ratification of the Sixteenth Amendment authorized the federal government to begin collecting income taxes.”
Total federal revenue for 2022 is forecast to be a record $4.8 trillion, up 19% in just one year.
The CBO said most of the increase will be from “individual income taxes.”
Biden already also has insisted on hundreds of millions of dollars more for the Internal Revenue Service, and the report said if that is budgeted, tax collections will go even higher.
“Receipts from individual income taxes — the largest source of federal revenues — rose sharply in 2021 and are projected to do so again in 2022 as the economy recovers from recession and temporary provisions enacted in response to the pandemic expire. Those receipts are projected to rise again after 2025 because of the scheduled expiration of some provisions of the 2017 tax act,” the CBO warned.
For 25 years, WND has boldly brought you the news that really matters. If you appreciate our Christian journalists and their uniquely truthful reporting and analysis, please help us by becoming a WND Insider!
Content created by the WND News Center is available for re-publication without charge to any eligible news publisher that can provide a large audience. For licensing opportunities of our original content, please contact [email protected].
This article was originally published by the WND News Center.