Sumary of Estimate: Revenues would drop before increasing under House Democrats’ tax plan:
- Democrats plan to raise $1 trillion over 10 years by making the federal income tax code more progressive.
- But they won’t get the money quickly — their plan actually decreases total income tax revenues in 2023. And when the money does come, it will come from the very rich.
- Americans making less than $40,000 per year would pay just $7.2 billion in federal income tax, down 90% from $72.3 billion under current law.
- The top personal federal income tax rate would be 39.6%, up from 37%.