Will go higher as previous administration’s tax cuts expire.
Americans are now paying the most in individual income taxes ever. According to a new budget analysis presented to Congress, the Treasury expects a 28 percent surge in individual income taxes this year with another increase in 2025 when the tax cuts from President Trump’s administration expire.
The latest Congressional Budget Office report revealed expectations of $2.6 trillion in individual income taxes this year, up from $2 trillion last year.
“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,“ the agency stated. “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.”
The CBO said that the overall federal revenue is expected to reach a record $4.8 trillion in 2022, a 19 percent one-year increase.
As the Lord Leads, Pray with Us…
- For wisdom for Secretary Yellen as she oversees the fiscal management of the government.
- For Commissioner Rettig to seek God’s direction as he manages the IRS.
- For discernment for the president and his Economic Council as federal spending increases.
Sources: Washington Examiner, Wall Street Journal
