WASHINGTON - President Joe Biden’s massive $1.9 trillion relief package which was signed into law in March slashed taxes for lower-income Americans.
According to a recent report from Congress’ Joint Committee on Taxation, Americans who make between $75,000 and $100,000 a year will pay an average tax rate of just 1.8%.
Taxpayers who earn less than $75,000 annually will pay no taxes, on average, in 2021.The broadly nonexistent federal tax bill for those making less than $75,000 is thanks to a variety of provisions in the American Rescue Plan, including a historic Child Tax Credit as well as federal stimulus payments.
It’s a stark contrast from the 2.4% average tax rate that many who earned between $50,000 and $75,000 had to pay in 2018. RELAT.