Highest for individuals since 1913.
The nonpartisan Congressional Budget Office (CBO) has released its budget and economic outlook for 2022 and it shows that federal taxes are rising to the highest levels in many years.
The report shows that federal tax revenues are increasing to $800 billion, or 19%, this year, the largest one-year increase in 45 years. Total tax revenue as a share of the economy will reach 19.6% this year, the highest level in more than two decades, and a level exceeded only three times in U.S. history. The report details how both individual and corporate taxes are rising to historically high levels.
According to the CBO, individual tax receipts will increase by nearly $600 billion this year, a 28% jump. Individual tax receipts will reach 10.6% of the GDP. The CBO notes that this is “the highest amount of individual income tax receipts recorded since the income tax began in 1913.” This is nearly 40% higher than the average level over the last 20 years.
President Biden and the majority in the Senate are promoting an even greater tax increase.
As the Lord Leads, Pray with Us…
- For wisdom for Director Phillip Swagel as he heads financial assessments by the CBO.
- For Chairman Jerome Powell to lead the Federal Reserve Board with discernment.
- For Commissioner Rettig to seek God’s guidance as he manages the IRS.
Sources: Congressional Budget Office, Washington Examiner
