JCT Releases Overview of 2021 Federal Tax System

JCT Releases Overview of 2021 Federal Tax System

U.S. Joint Committee on Taxation

The Joint Committee on Taxation in an April 15 report (JCX-18-21) described the federal tax system for 2021, breaking it down into five main elements: individual income taxes; corporate income taxes; estate, gift, and generation-skipping taxes; social insurance taxes; and major excise taxes.

The Joint Committee on Taxation in an April 15 report (JCX-18-21) described the federal tax system for 2021, breaking it down into five main elements: individual income taxes; corporate income taxes; estate, gift, and generation-skipping taxes; social insurance taxes; and major excise taxes.

The Joint Committee on Taxation in an April 15 report (JCX-18-21) described the federal tax system for 2021, breaking it down into five main elements: individual income taxes; corporate income taxes; estate, gift, and generation-skipping taxes; social insurance taxes; and major excise taxes. The section on individual income tax covered gross income, taxable income, tax liability, tax rates for 2021, credits and deductions, and alternative minimum tax liability. Regarding corporate income tax, the report discussed taxable income; tax liability, including the base erosion and antiabuse tax; affiliated groups; the treatment of corporate distributions; and taxes on accumulated earnings or personal holding company income. The JCT provided an overview of estate, gift, and generation-skipping transfer taxes. The report also explained FICA, self-employment taxes, and FUTA taxes; additional hospital insurance taxes on some high-income individuals; and refundable payroll tax credits. The largest excise taxes for fiscal 2020 were those on gasoline motor fuel, diesel motor fuel, domestic airline tickets, domestic and imported tobacco products, and domestic imported alcohol beverages, the report said. The appendix includes charts and tables on federal receipts, sources of individual gross income, the number of business returns by type, the taxable wage base of Social Security, tax distribution, and marginal tax rates on labor and long-term capital gains.

The Joint Committee on Taxation in an April 15 report (JCX-18-21) described the federal tax system for 2021, breaking it down into five main elements: individual income taxes; corporate income taxes; estate, gift, and generation-skipping taxes; social insurance taxes; and major excise taxes. The section on individual income tax covered gross income, taxable income, tax liability, tax rates for 2021, credits and deductions, and alternative minimum tax liability. Regarding corporate income tax, the report discussed taxable income; tax liability, including the base erosion and antiabuse tax; affiliated groups; the treatment of corporate distributions; and taxes on accumulated earnings or personal holding company income. The JCT provided an overview of estate, gift, and generation-skipping transfer taxes. The report also explained FICA, self-employment taxes, and FUTA taxes; additional hospital insurance taxes on some high-income individuals; and refundable payroll tax credits. The largest excise taxes for fiscal 2020 were those on gasoline motor fuel, diesel motor fuel, domestic airline tickets, domestic and imported tobacco products, and domestic imported alcohol beverages, the report said. The appendix includes charts and tables on federal receipts, sources of individual gross income, the number of business returns by type, the taxable wage base of Social Security, tax distribution, and marginal tax rates on labor and long-term capital gains.