The one thing the Republican Congress did give then-President Donald Trump during his first year in office was a major tax cut for businesses and individuals.
But despite that, the country continues to pay a massive amount of income taxes to the government.
And in fact, it’s now official: Americans pay more in taxes than they ever have.
What’s more, our tax burden has become the largest share of gross domestic product since income taxes began in 1913 with a paltry amount imposed on the most wealthy.
“In 2021, receipts from individual income taxes totaled $2.0 trillion, or 9.1% of GDP,” said a report from the Congressional Budget Office.
“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,” said the agency.
The CBO said that the overall federal revenue is expected to reach a record $4.8 trillion in 2022, a 19% one-year increase.
“The strong revenue growth in 2021 and 2022 results mostly from large increases in collections of individual income taxes. Total revenues in 2022 are projected to equal 19.6% of the nation’s gross domestic product — the largest annual revenues relative to the size of the economy since 2000,” said the CBO.
More money is expected to begin flowing into federal coffers in 2025 if Congress allows the Trump-era tax cuts to expire.
Also, if Congress grants Joe Biden’s budget request, the IRS will get a massive increase in funding which will lead to a bigger agency and more aggressive tax collection.
The Washington Examiner noted:
People are now paying more in total income taxes than ever, even considering the 2017 tax cuts signed by former President Donald Trump. And they will be paying significantly more when elements of those tax cuts expire in 2025, said the CBO.
“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,” read the report.
This, as Americans are also experiencing record-high inflation as food, fuel, energy, and housing costs have skyrocketed under Biden.