U.S. tax code changes sought by Democrats in the House of Representatives to help fund $3.5 trillion in domestic investments would cut annual tax bills for Americans earning less than $200,000 a year through 2025, a congressional estimate showed yesterday, Reuters reported. The bipartisan Joint Committee on Taxation estimated that expanded tax credits for children and earned income would mean people in lower-income brackets would pay far less in taxes in 2023 under the Democratic plan, which is being debated this week in the tax-writing House Ways and Means Committee. At the other end of the income scale, tax collections from those earning over $200,000 would rise slightly in 2023, escalating to a 10.6% increase for people earning $1 million and more, the committee said. By 2027, after an expanded Child Tax Credit expires, those earning between $30,000 and $200,000 would start to see slightly higher tax bills, according to the estimate. The joint committee, which estimates tax revenue and credit provisions of legislation, estimated that tax increase proposals now under debate in the House Ways and Means Committee would directly raise some $2.07 trillion over 10 years. The plan would raise the top individual income tax rate to its pre-2017 level of 39.6%, from 37% currently, on taxable income above $400,000 with a 3% surcharge on income above $5 million.
