An analysis of the tax provisions in congressional Democrats’ multitrillion-dollar reconciliation package found that the middle class will see a slight overall increase in taxes toward the end of the decade.
A distributional analysis released Tuesday by the Joint Committee on Taxation found that while taxes would only increase for the wealthy in the first calendar year it analyzed, as the decade wears on and the expanded child tax credit expires, the average tax rate will increase on those in lower brackets.
By 2027, the average tax rate for people making between $50,000 and $75,000 will rise by an estimated 1%. Those making between $75,000 and $100,000 would see their overall tax burden climb by 1.3%, and those making between $100,000 and $200,000 would see a 1.5% increase.
Average tax rates would also be higher, although more modestly so, for those