<div>JOINT COMMITTEE ON TAXATION November 15, 2021 A DISTRIBUTION OF RETURNS BY THE SIZE OF THE TAX CHANGE FOR THE REVENUE PROVISIONS OF TITLE XIII - COMMITTEE ON WAYS AND MEANS, OF H.R. 5376, THE "BUILD BACK BETTER ACT," AS REPORTED BY THE COMMITTEE ON THE BUDGET, WITH MODIFICATIONS Calendar Year 2022  INCOME  Percentage of Returns    Tax Decrease Tax ChangeTax Increase CATEGORY (2)Greater  Less than  Greater  Than $500$100-$500$100 $100-$500Than $500 Less than $10,000...............22.7%12.8%64.5% (4)(4) $10,000 to $20,000............62.0%2.0%36.0% (4)(4) $20,000 to $30,000............30.1%9.3%60.6% (4)(4) $30,000 to $40,000............25.6%2.9%71.5% (4)(4) $40,000 to $50,000............27.3%3.4%69.3% (4)(4) $50,000 to $75,000............24.3%5.9%69.8% 0.1%(4) $75,000 to $100,000..........26.7%10.8%62.4% 0.1%(4) $100,000 to $200,000.........39.5%19.0%41.3% 0.2%(4) $200,000 to $500,000.........70.6%16.3%12.4% 0.5%0.1% $500,000 to $1,000,000......86.7%2.5%1.4% 0.7%8.7% $1,000,000 and over...........68.1%1.3%0.8% 0.5%29.2% Total, All Taxpayers..........35.8%9.7%54.1% 0.1%0.2%  Source: Joint Committee on Taxation Detail may not add to total due to rounding. (1) This table is a distributional analysis of the proposals in JCX-45-21, except the following: Subtitle E: Part 3 and Part 4 items 2 and 3; Subtitle F: Part 3 items 1, 2, and 4, Part 4 items 1, 6, and 7, Part 6 and Part 7; Subtitle G: Part 2 item 2, Part 3, Part 4, and Part 5 items 2 and 3; Subtitle H: Part 3, Part 4, and Part 5 items 2-4, 6, 8, 9, 12 and 15.. This table includes the Manager's Amendment modification to Subtitle G: Part 6. (2) The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exempt interest, [2] employer contr butions for health plans and life insurance, [3] employer share of FICA tax, [4] workers' compensation, [5] nontaxable Social Security benefits, [6] insurance value of Medicare benefits, [7] alternative minimum tax preference items, [8] individual share of business taxes, and [9] excluded income of U.S. citizens living abroad. Categories are measured at 2021 levels. (3) The categories reflecting the size of tax change are indexed for inflation. (4) Less than 0.05%.        Page 1 JOINT COMMITTEE ON TAXATION November 15, 2021 A DISTRIBUTION OF RETURNS BY THE SIZE OF THE TAX CHANGE FOR THE REVENUE PROVISIONS OF TITLE XIII - COMMITTEE ON WAYS AND MEANS, OF H.R. 5376, THE "BUILD BACK BETTER ACT," AS REPORTED BY THE COMMITTEE ON THE BUDGET, WITH MODIFICATIONS Calendar Year 2023  INCOME  Percentage of Returns    Tax Decrease Tax ChangeTax Increase CATEGORY (2)Greater  Less than  Greater  Than $500$100-$500$100 $100-$500Than $500 Less than $10,000...............9.8%0.1%89.0% 1.0%0.1% $10,000 to $20,000............20.6%6.5%71.6% 1.0%0.3% $20,000 to $30,000............12.3%7.3%78.7% 1.4%0.4% $30,000 to $40,000............6.3%4.1%86.1% 2.8%0.7% $40,000 to $50,000............4.5%2.4%86.2% 5.7%1.2% $50,000 to $75,000............2.3%1.2%84.3% 9.6%2.6% $75,000 to $100,000..........2.0%1.3%71.3% 19.5%5.9% $100,000 to $200,000.........6.6%3.9%43.4% 32.1%14.0% $200,000 to $500,000.........37.9%6.2%9.2% 21.5%25.2% $500,000 to $1,000,000......65.4%1.9%1.2% 2.6%28.9% $1,000,000 and over...........45.3%0.7%0.5% 1.0%52.6% Total, All Taxpayers..........10.4%3.5%67.3% 12.4%6.4%  Source: Joint Committee on Taxation Detail may not add to total due to rounding. (1) This table is a distributional analysis of the proposals in JCX-45-21, except the following: Subtitle E: Part 3 and Part 4 items 2 and 3; Subtitle F: Part 3 items 1, 2, and 4, Part 4 items 1, 6, and 7, Part 6 and Part 7; Subtitle G: Part 2 item 2, Part 3, Part 4, and Part 5 items 2 and 3; Subtitle H: Part 3, Part 4, and Part 5 items 2-4, 6, 8, 9, 12 and 15.. This table includes the Manager's Amendment modification to Subtitle G: Part 6. (2) The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exempt interest, [2] employer contr butions for health plans and life insurance, [3] employer share of FICA tax, [4] workers' compensation, [5] nontaxable Social Security benefits, [6] insurance value of Medicare benefits, [7] alternative minimum tax preference items, [8] individual share of business taxes, and [9] excluded income of U.S. citizens living abroad. Categories are measured at 2021 levels. (3) The categories reflecting the size of tax change are indexed for inflation. (4) Less than 0.05%.        Page 2 JOINT COMMITTEE ON TAXATION November 15, 2021 A DISTRIBUTION OF RETURNS BY THE SIZE OF THE TAX CHANGE FOR THE REVENUE PROVISIONS OF TITLE XIII - COMMITTEE ON WAYS AND MEANS, OF H.R. 5376, THE "BUILD BACK BETTER ACT," AS REPORTED BY THE COMMITTEE ON THE BUDGET, WITH MODIFICATIONS Calendar Year 2025  INCOME  Percentage of Returns    Tax Decrease Tax ChangeTax Increase CATEGORY (2)Greater  Less than  Greater  Than $500$100-$500$100 $100-$500Than $500 Less than $10,000...............9.9%0.1%89.2% 0.6%(4) $10,000 to $20,000............19.1%8.2%71.7% 0.8%0.2% $20,000 to $30,000............10.6%7.4%80.7% 1.1%0.2% $30,000 to $40,000............4.7%3.9%89.1% 1.8%0.4% $40,000 to $50,000............3.7%2.1%89.9% 3.7%0.5% $50,000 to $75,000............2.1%1.3%88.4% 7.0%1.2% $75,000 to $100,000..........2.1%2.1%77.8% 14.9%3.0% $100,000 to $200,000.........7.7%5.0%49.6% 29.4%8.3% $200,000 to $500,000.........41.8%7.2%9.8% 23.7%17.4% $500,000 to $1,000,000......70.3%1.8%1.1% 2.9%23.9% $1,000,000 and over...........49.0%0.6%0.6% 1.2%48.6% Total, All Taxpayers..........10.4%4.0%70.6% 11.0%4.0%  Source: Joint Committee on Taxation Detail may not add to total due to rounding. (1) This table is a distributional analysis of the proposals in JCX-45-21, except the following: Subtitle E: Part 3 and Part 4 items 2 and 3; Subtitle F: Part 3 items 1, 2, and 4, Part 4 items 1, 6, and 7, Part 6 and Part 7; Subtitle G: Part 2 item 2, Part 3, Part 4, and Part 5 items 2 and 3; Subtitle H: Part 3, Part 4, and Part 5 items 2-4, 6, 8, 9, 12 and 15.. This table includes the Manager's Amendment modification to Subtitle G: Part 6. (2) The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exempt interest, [2] employer contr butions for health plans and life insurance, [3] employer share of FICA tax, [4] workers' compensation, [5] nontaxable Social Security benefits, [6] insurance value of Medicare benefits, [7] alternative minimum tax preference items, [8] individual share of business taxes, and [9] excluded income of U.S. citizens living abroad. Categories are measured at 2021 levels. (3) The categories reflecting the size of tax change are indexed for inflation. (4) Less than 0.05%.        Page 3 JOINT COMMITTEE ON TAXATION November 15, 2021 A DISTRIBUTION OF RETURNS BY THE SIZE OF THE TAX CHANGE FOR THE REVENUE PROVISIONS OF TITLE XIII - COMMITTEE ON WAYS AND MEANS, OF H.R. 5376, THE "BUILD BACK BETTER ACT," AS REPORTED BY THE COMMITTEE ON THE BUDGET, WITH MODIFICATIONS Calendar Year 2027  INCOME  Percentage of Returns    Tax Decrease Tax ChangeTax Increase CATEGORY (2)Greater  Less than  Greater  Than $500$100-$500$100 $100-$500Than $500 Less than $10,000...............6.5%1.9%90.5% 0.9%0.2% $10,000 to $20,000............3.7%2.4%92.6% 1.1%0.3% $20,000 to $30,000............0.8%0.6%96.8% 1.4%0.4% $30,000 to $40,000............0.4%0.3%95.8% 3.0%0.6% $40,000 to $50,000............0.3%0.4%92.4% 5.9%1.1% $50,000 to $75,000............0.2%0.7%84.1% 12.7%2.3% $75,000 to $100,000..........0.1%1.3%62.4% 30.8%5.3% $100,000 to $200,000.........0.3%1.4%18.9% 63.5%16.0% $200,000 to $500,000.........0.6%2.3%4.1% 43.8%49.3% $500,000 to $1,000,000......2.6%1.5%1.1% 3.6%91.2% $1,000,000 and over...........2.0%0.4%0.4% 0.5%96.8% Total, All Taxpayers..........1.1%1.2%65.9% 22.3%9.4%  Source: Joint Committee on Taxation Detail may not add to total due to rounding. (1) This table is a distributional analysis of the proposals in JCX-45-21, except the following: Subtitle E: Part 3 and Part 4 items 2 and 3; Subtitle F: Part 3 items 1, 2, and 4, Part 4 items 1, 6, and 7, Part 6 and Part 7; Subtitle G: Part 2 item 2, Part 3, Part 4, and Part 5 items 2 and 3; Subtitle H: Part 3, Part 4, and Part 5 items 2-4, 6, 8, 9, 12 and 15.. This table includes the Manager's Amendment modification to Subtitle G: Part 6. (2) The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exempt interest, [2] employer contr butions for health plans and life insurance, [3] employer share of FICA tax, [4] workers' compensation, [5] nontaxable Social Security benefits, [6] insurance value of Medicare benefits, [7] alternative minimum tax preference items, [8] individual share of business taxes, and [9] excluded income of U.S. citizens living abroad. Categories are measured at 2021 levels. (3) The categories reflecting the size of tax change are indexed for inflation. (4) Less than 0.05%.        Page 4 JOINT COMMITTEE ON TAXATION November 15, 2021 A DISTRIBUTION OF RETURNS BY THE SIZE OF THE TAX CHANGE FOR THE REVENUE PROVISIONS OF TITLE XIII - COMMITTEE ON WAYS AND MEANS, OF H.R. 5376, THE "BUILD BACK BETTER ACT," AS REPORTED BY THE COMMITTEE ON THE BUDGET, WITH MODIFICATIONS Calendar Year 2029  INCOME  Percentage of Returns    Tax Decrease Tax ChangeTax Increase CATEGORY (2)Greater  Less than  Greater  Than $500$100-$500$100 $100-$500Than $500 Less than $10,000...............6.5%1.8%90.8% 0.8%0.1% $10,000 to $20,000............3.1%2.3%93.2% 1.0%0.3% $20,000 to $30,000............0.6%0.6%97.1% 1.4%0.3% $30,000 to $40,000............0.3%0.3%96.1% 2.8%0.5% $40,000 to $50,000............0.3%0.3%92.5% 6.0%0.9% $50,000 to $75,000............0.2%0.4%82.6% 14.9%1.8% $75,000 to $100,000..........0.2%0.5%49.8% 44.9%4.6% $100,000 to $200,000.........0.4%0.7%13.2% 70.6%15.1% $200,000 to $500,000.........0.3%1.3%3.7% 42.3%52.4% $500,000 to $1,000,000......0.8%1.5%1.4% 2.6%93.6% $1,000,000 and over...........1.5%0.4%0.4% 0.6%97.2% Total, All Taxpayers..........1.0%0.8%63.2% 25.6%9.3%  Source: Joint Committee on Taxation Detail may not add to total due to rounding. (1) This table is a distributional analysis of the proposals in JCX-45-21, except the following: Subtitle E: Part 3 and Part 4 items 2 and 3; Subtitle F: Part 3 items 1, 2, and 4, Part 4 items 1, 6, and 7, Part 6 and Part 7; Subtitle G: Part 2 item 2, Part 3, Part 4, and Part 5 items 2 and 3; Subtitle H: Part 3, Part 4, and Part 5 items 2-4, 6, 8, 9, 12 and 15.. This table includes the Manager's Amendment modification to Subtitle G: Part 6. (2) The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exempt interest, [2] employer contr butions for health plans and life insurance, [3] employer share of FICA tax, [4] workers' compensation, [5] nontaxable Social Security benefits, [6] insurance value of Medicare benefits, [7] alternative minimum tax preference items, [8] individual share of business taxes, and [9] excluded income of U.S. citizens living abroad. Categories are measured at 2021 levels. (3) The categories reflecting the size of tax change are indexed for inflation. (4) Less than 0.05%.        Page 5 JOINT COMMITTEE ON TAXATION November 15, 2021 A DISTRIBUTION OF RETURNS BY THE SIZE OF THE TAX CHANGE FOR THE REVENUE PROVISIONS OF TITLE XIII - COMMITTEE ON WAYS AND MEANS, OF H.R. 5376, THE "BUILD BACK BETTER ACT," AS REPORTED BY THE COMMITTEE ON THE BUDGET, WITH MODIFICATIONS Calendar Year 2031  INCOME  Percentage of Returns    Tax Decrease Tax ChangeTax Increase CATEGORY (2)Greater  Less than  Greater  Than $500$100-$500$100 $100-$500Than $500 Less than $10,000...............6.3%1.9%91.0% 0.7%0.1% $10,000 to $20,000............2.6%2.3%94.0% 0.9%0.2% $20,000 to $30,000............0.5%0.5%97.6% 1.2%0.2% $30,000 to $40,000............0.3%0.4%96.8% 2.2%0.4% $40,000 to $50,000............0.3%0.3%93.7% 5.2%0.6% $50,000 to $75,000............0.2%0.5%85.3% 12.8%1.2% $75,000 to $100,000..........0.2%0.7%50.9% 45.1%3.1% $100,000 to $200,000.........0.3%1.1%14.8% 72.2%11.6% $200,000 to $500,000.........0.3%1.7%4.2% 46.7%47.0% $500,000 to $1,000,000......1.4%1.4%1.4% 2.6%93.2% $1,000,000 and over...........1.6%0.2%0.5% 0.5%97.1% Total, All Taxpayers..........1.0%1.0%64.3% 25.9%7.9%  Source: Joint Committee on Taxation Detail may not add to total due to rounding. (1) This table is a distributional analysis of the proposals in JCX-45-21, except the following: Subtitle E: Part 3 and Part 4 items 2 and 3; Subtitle F: Part 3 items 1, 2, and 4, Part 4 items 1, 6, and 7, Part 6 and Part 7; Subtitle G: Part 2 item 2, Part 3, Part 4, and Part 5 items 2 and 3; Subtitle H: Part 3, Part 4, and Part 5 items 2-4, 6, 8, 9, 12 and 15.. This table includes the Manager's Amendment modification to Subtitle G: Part 6. (2) The income concept used to place tax returns into income categories is adjusted gross income (AGI) plus: [1] tax-exempt interest, [2] employer contr butions for health plans and life insurance, [3] employer share of FICA tax, [4] workers' compensation, [5] nontaxable Social Security benefits, [6] insurance value of Medicare benefits, [7] alternative minimum tax preference items, [8] individual share of business taxes, and [9] excluded income of U.S. citizens living abroad. Categories are measured at 2021 levels. (3) The categories reflecting the size of tax change are indexed for inflation. (4) Less than 0.05%.        Page 6</div>

JCT Estimates Impact of Build Back Better Revenue Provisions

JCT Estimates Impact of Build Back Better Revenue Provisions

U.S. Joint Committee on Taxation

The Joint Committee on Taxation released a document November 15 estimating changes in tax returns based on provisions in the latest version of the Build Back Better Act (H.R. 5376). 

<a href="/lr/resolve//79g96">Tracking the 2021 Tax Overhaul Proposals</a>

The Joint Committee on Taxation released a document November 15 estimating changes in tax returns based on provisions in the latest version of the Build Back Better Act (H.R. 5376).

The Joint Committee on Taxation released a document November 15 estimating changes in tax returns based on provisions in the latest version of the Build Back Better Act (<a href="/lr/resolve//7ckrc">H.R. 5376</a>).  The JCT report, based on calendar years 2022, 2023, 2025, 2027, 2029, and 2031, estimates that the total percentage of taxpayers who would see tax decreases of greater than $500 under the bill would decrease from roughly 36 percent in 2022 to 1 percent in 2031. The total percentage of taxpayers who would see tax decreases between $100 and $500 would also decrease from about 10 percent in 2022 to 1 percent in 2031, with taxpayers in the lower income brackets seeing larger decreases.  The total percentage of taxpayers who would see tax increases exceeding $500 under the bill would increase from 0.2 percent in 2022 to roughly 8 percent in 2031, according to the report. Those with incomes of $1 million or more are estimated to see the largest tax increases. The total percentage of taxpayers who would receive tax increases between $100 and $500 would also increase from 0.1 percent in 2022 to roughly 26 percent in 2031.  Lastly, the total percentage of taxpayers who would see tax changes of less than $100 would rise from about 54 percent in 2022 to roughly 64 percent in 2031.

The Joint Committee on Taxation released a document November 15 estimating changes in tax returns based on provisions in the latest version of the Build Back Better Act (H.R. 5376).  The JCT report, based on calendar years 2022, 2023, 2025, 2027, 2029, and 2031, estimates that the total percentage of taxpayers who would see tax decreases of greater than $500 under the bill would decrease from roughly 36 percent in 2022 to 1 percent in 2031. The total percentage of taxpayers who would see tax decreases between $100 and $500 would also decrease from about 10 percent in 2022 to 1 percent in 2031, with taxpayers in the lower income brackets seeing larger decreases.  The total percentage of taxpayers who would see tax increases exceeding $500 under the bill would increase from 0.2 percent in 2022 to roughly 8 percent in 2031, according to the report. Those with incomes of $1 million or more are estimated to see the largest tax increases. The total percentage of taxpayers who would receive tax increases between $100 and $500 would also increase from 0.1 percent in 2022 to roughly 26 percent in 2031.  Lastly, the total percentage of taxpayers who would see tax changes of less than $100 would rise from about 54 percent in 2022 to roughly 64 percent in 2031. 