JOINT COMMITTEE ON TAXATION November 19, 2021 JXC-48-21 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 PASSED BY THE HOUSE OF REPRESENTATIVES 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.. For an explanation of the distribution methodology used in this table, see JCX-15-12 and JCX-14-13. (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 19, 2021 JXC-48-21 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 PASSED BY THE HOUSE OF REPRESENTATIVES 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.. For an explanation of the distribution methodology used in this table, see JCX-15-12 and JCX-14-13. (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 19, 2021 JXC-48-21 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 PASSED BY THE HOUSE OF REPRESENTATIVES 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.. For an explanation of the distribution methodology used in this table, see JCX-15-12 and JCX-14-13. (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 19, 2021 JXC-48-21 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 PASSED BY THE HOUSE OF REPRESENTATIVES 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.. For an explanation of the distribution methodology used in this table, see JCX-15-12 and JCX-14-13. (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 19, 2021 JXC-48-21 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 PASSED BY THE HOUSE OF REPRESENTATIVES 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.. For an explanation of the distribution methodology used in this table, see JCX-15-12 and JCX-14-13. (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 19, 2021 JXC-48-21 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 PASSED BY THE HOUSE OF REPRESENTATIVES 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.. For an explanation of the distribution methodology used in this table, see JCX-15-12 and JCX-14-13. (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

JCT Estimates Tax Change Distribution Under Build Back Better

JCT Estimates Tax Change Distribution Under Build Back Better

U.S. Joint Committee on Taxation

A majority of taxpayers would see a tax change of less than $100 under revenue provisions of Title XIII of the Build Back Better Act (H.R. 5376), while a growing number of taxpayers over 10 years would see a tax increase between $100 and $500, the Joint Committee on Taxation said in November 19 estimates for 2022, 2023, 2025, 2027, 2029, and 2031.

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

A majority of taxpayers would see a tax change of less than $100 under revenue provisions of Title XIII of the Build Back Better Act (H.R. 5376), while a growing number of taxpayers over 10 years would see a tax increase between $100 and $500, the Joint Committee on Taxation said in November 19 estimates for 2022, 2023, 2025, 2027, 2029, and 2031.

A majority of taxpayers would see a tax change of less than $100 under revenue provisions of Title XIII of the Build Back Better Act (<a href="/lr/resolve//7ckrc">H.R. 5376</a>), while a growing number of taxpayers over 10 years would see a tax increase between $100 and $500, the Joint Committee on Taxation said in November 19 estimates for 2022, 2023, 2025, 2027, 2029, and 2031.