The Congressional Budget Office report shows the agency expects individual income tax receipts to rise.
According to the report, the receipts will increase by 28% this year alone.
It marks an increase from $2.0 trillion to $2.6 trillion.
The agency explained, “At 10.6 percent of GDP, that total is expected to be the highest amount of individual income tax receipts recorded since 1913, when ratification of the Sixteenth Amendment authorized the federal government to begin collecting income taxes.”
It continued, “About one-third of this year’s jump in individual income tax receipts results from growth in the economy and in the types of income that make up GDP, especially wages and salaries. Both nominal GDP (output not adjusted to remove the effects of inflation) and wages are expected to rise by 10 percent in 2022.”
Additionally, the agency suggested that “another one-third of the growth in receipts in 2022 results from the end of temporary provisions enacted in response to the pandemic.”
The office said the remaining growth in individual income taxes in 2022 “cannot yet be explained.”
The agency vowed to “evaluate the reasons for the discrepancy as more detailed information from tax returns becomes available” for 2020 and 2021.
On Monday, President Joe Biden outlined a three-part plan to lower costs for Americans in an op-ed published by The Wall Street Journal.
“I ran for president because I was tired of the so-called trickle-down economy. We now have a chance to build on a historic recovery with an economy that works for working families, Biden wrote.
He added, “The most important thing we can do now to transition from rapid recovery to stable, steady growth is to bring inflation down.”
Additionally, Biden explained he would not improperly weigh in on the actions of the Federal Reserve.
“I have appointed highly qualified people from both parties to lead that institution,” Biden wrote.
He continued, “I agree with their assessment that fighting inflation is our top economic challenge right now.”
The president claimed he has “done what I can on my own to help working families during this challenging time — and will keep acting to lower costs where I can — but now Congress needs to act too.”
Additionally, according to Biden, his deficit reduction plan would make “common-sense reforms to the tax code.”
