Raising taxes push has THIS thrown at Democrats…..
Republicans gonna have a picnic with this….
Making it easier for them to cut back money for IRS enforcement and higher taxes pushes by some in Congress…
These numbers could actually help Biden ….
It COULD show that LARGE increased taxes are not needed to balance his ‘BIG Spending’ legislation and budget goals…..
“They are just booming,” said Mark Booth, a former top revenue forecaster at the agency. “It is very unusual.”
Though Democrats are hammering the rich for not paying their fair share in taxes, the increase is being driven by levies primarily paid by the well-to-do. For example, corporate tax receipts leapt 75 percent, CBO says. At $370 billion, they easily top where they were immediately before Republicans slashed the corporate rate as part of the Tax Cuts and Jobs Act.
The surge has gotten relatively little notice, obscured perhaps by the government’s towering budget deficits and congressional battles over taxes and spending.
It is highly unusual, though, for the government to see a big wave of revenue in the wake of an economic downturn. Typically, receipts crash following recessions because, as people’s incomes fall, they owe less to the Treasury.
The coronavirus downturn was much more bifurcated, however, with higher-income people, who pay most federal taxes, doing far better than low earners….
Payments by big companies had plunged in the wake of Republicans’ 2017 tax cuts, falling by almost a third to $205 billion the following year. They didn’t really begin to bounce back until this past fiscal year and then recovered to an extent that surprised analysts.
CBO repeatedly revised upward its estimates, and still came in too low. At $370 billion, the corporate tax haul would be the biggest, at least in nominal terms, since 2007.
Another big increase — 33 percent — came with “non-withheld” receipts, which include a variety of taxes that are not subject to withholding by employers.
CBO did not provide a breakdown of those levies. But big changes there are usually driven by capital gains realizations and payments by unincorporated businesses. And the agency previously upped its estimates of capital gains taxes over the past year.
Individual income taxes were up 27.5 percent, CBO estimates. Those too are disproportionately paid by the well-to-do, with 80 percent coming from the top 10 percent of earners.
The increases came despite lawmakers approving a series of tax cuts in the wake of the pandemic. At the time, they were projected to cost nearly $500 billion in 2021 — which would make them bigger than the first year’s worth of tax cuts included in Republicans’ 2017 legislation.
But some of the pandemic-related tax cuts, such as an employee retention credit meant to help keep workers on the payroll, were less popular than lawmakers anticipated — just because Congress cuts takes doesn’t mean everyone necessarily takes advantage of them…..