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Tax News Update - 2nd Edition



Federal tax revenue to increase by 19% in 2022, says CBO


A large increase in the collection of individual income taxes is expected to result in a 19 percent jump in federal revenue in 2022, from $4.0 trillion to $4.8 trillion, according to The Budget and Economic Outlook published Wednesday by the Congressional Budget Office (CBO). In comparison, federal revenue increased from $3.4 trillion in 2020 to $4.0 trillion in 2021, an 18% increase.


In 2021, receipts from individual income taxes totaled $2.0 trillion. Based on information through late April 2022, the CBO expects individual income tax receipts to rise by 28 percent in 2022, to $2.6 trillion.


About one-third of this year's jump in individual income tax receipts results from growth in the economy, while another one-third results from the end of temporary provisions, such as the deferral of certain payroll taxes, enacted in response to the pandemic.


Proposed Tax Legislation


The following is an overview of recent tax proposals discussed or introduced in Congress over the past several weeks. It is important that you not treat these proposals as passed legislation. Many hurdles remain before any of these legislative ideas become law. In the meantime, it is useful to see what types of tax laws may be affecting you in the future.


Commonsense Reporting Act of 2022 (House of Representatives Bill 7774): This bill, introduced May 13, proposes to streamline the employer reporting process and strengthen the eligibility verification process for the premium assistance tax credit and cost-sharing subsidy.


The above is a proposal. There are many steps each bill must go through before they are signed into law. Information retrieved from: GovTrack.us https://www.govtrack.us/congress/bills/subjects/taxation/6342

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