Democratic lawmakers in the House of Representatives have advanced updated legislation containing the tax elements of President Biden’s Build Back Better agenda. It could get voted on this week! The draft legislation may be modified before that. What does it mean for you?
Bob goes to the mystic tax guru Elliot Barela to read the future....
Using the Tax Foundations General Equilibrium Model, they estimate that the tax provisions, IRS enforcement, and drug pricing provisions in the House bill would increase federal revenues by about $1.5 trillion over the next decade, before accounting for $500 billion in expanded tax credits for individuals and businesses, resulting in a net revenue increase of about $1 trillion. Excluding the anticipated revenue from increased tax compliance and the drug pricing provisions, the bill would raise about $637 billion from net tax increases over 10 years.
They also estimate however, that the House bill would reduce long-run economic output by nearly 0.4 percent and eliminate about 107,000 full-time equivalent jobs in the United States. It would also reduce average after-tax incomes for the top 80 percent of taxpayers over the long run. Is that even legal?DocuPlayer!