Bill Overview
Title: Food and Fuel Family Savings Act
Description: This bill allows an individual taxpayer an inflation rebate for the first taxable year beginning in 2022. The amount of such rebate is $600 ($1,200 for joint returns), plus $600 for each of the taxpayer's dependents. The amount of the rebate is reduced for taxpayers whose adjusted gross income exceeds certain levels. The bill imposes a 5% surcharge on individuals whose modified adjusted gross income exceeds $10 million and a 3% surcharge for incomes exceeding $25 million. It also imposes surcharges on certain high income estates and trusts. The bill increases the maximum corporate income tax rate to 26.5% for corporate taxable income exceeding $5 million.
Sponsors: Sen. Reed, Jack [D-RI]
Target Audience
Population: People globally who are subject to income tax regulations
Estimated Size: 158000000
- This bill offers financial rebates to individuals and families through the tax system.
- Impacts depend on the taxpayer's earnings and whether they have dependents.
- A significant number of households will benefit from tax rebates, specifically those with adjusted gross income levels below certain thresholds.
- The bill affects individuals, families, and especially those with low to moderate income.
- Households with incomes over $10 million will incur a 5% surcharge, and incomes over $25 million a 3% surcharge, affecting a very small percentage of the population.
- High-income estates and trusts will face surcharges, impacting wealthy individuals and their beneficiaries.
- Increasing the corporate tax rate primarily affects businesses with high earnings.
Reasoning
- This policy primarily impacts individuals and families by providing tax rebates, which can result in a direct increase in household disposable income, especially for those below certain income levels.
- Those with incomes greater than $10 million are a very small group, and the majority of the population will not face the surcharges but may benefit from rebates if they have dependents.
- Given the budget limit, prioritization will likely be toward families with lower incomes to maximize benefit distribution across a broad demographic.
- Corporate tax changes will affect large businesses with profits exceeding $5 million, which can indirectly impact employees if businesses adjust their financial strategies due to increased tax obligations.
Simulated Interviews
Software Developer (Austin, TX)
Age: 34 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 1.0 years
Commonness: 15/20
Statement of Opinion:
- The rebate would be helpful for managing living expenses, especially childcare costs.
- I'm not affected by the high-income surcharges, so this policy feels beneficial overall.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Business Owner (Los Angeles, CA)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- The rebate will be slightly beneficial, but the corporate tax increase could impact future growth plans for the restaurant.
- Overall, it's a mixed outcome for me.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Investment Banker (New York, NY)
Age: 60 | Gender: female
Wellbeing Before Policy: 9
Duration of Impact: 0.0 years
Commonness: 3/20
Statement of Opinion:
- The policy has minimal impact on me financially, though I understand its benefits for broader income distribution.
- I am concerned about potential corporate impacts affecting my professional network.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 9 |
| Year 3 | 9 | 9 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Factory Worker (Detroit, MI)
Age: 28 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 1.0 years
Commonness: 14/20
Statement of Opinion:
- This rebate makes a big difference in managing our household expenses.
- Any extra cash helps a lot, and we're grateful for the assistance.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 4 |
| Year 10 | 5 | 4 |
| Year 20 | 5 | 4 |
Corporate Executive (Miami, FL)
Age: 52 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 5/20
Statement of Opinion:
- I'm unaffected by the rebates but slightly concerned about corporate tax impacts on my industry.
- It's important to balance personal benefits with national economic health.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
CEO of Tech Company (San Francisco, CA)
Age: 40 | Gender: male
Wellbeing Before Policy: 9
Duration of Impact: 10.0 years
Commonness: 2/20
Statement of Opinion:
- The surcharge affects my income, but it's manageable and might contribute positively towards economic equality.
- Interested in seeing how corporate tax changes impact overall industry growth.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 9 |
| Year 2 | 8 | 9 |
| Year 3 | 8 | 9 |
| Year 5 | 7 | 8 |
| Year 10 | 7 | 8 |
| Year 20 | 7 | 8 |
Retired (Phoenix, AZ)
Age: 70 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 15/20
Statement of Opinion:
- As a retiree, this policy doesn't impact me directly, but I'm glad to see families getting the support they need.
- I hope it will contribute to overall economic stability.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Public School Teacher (Chicago, IL)
Age: 50 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 1.0 years
Commonness: 12/20
Statement of Opinion:
- The rebate will help with school supplies and other educational expenses for my kids.
- I support tax policies aimed at public welfare.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 5 |
Freelance Writer (Seattle, WA)
Age: 37 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 0.5 years
Commonness: 13/20
Statement of Opinion:
- I don't qualify for a rebate, but I'm glad to see support for those who need it more.
- Policy doesn't affect my personal well-being significantly.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 4 |
| Year 10 | 4 | 4 |
| Year 20 | 4 | 4 |
Owner of Marketing Firm (Boston, MA)
Age: 55 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- My business might face slight financial pressure due to the corporate tax increase, impacting future expansions.
- Personally, the rebates aren't significant, but the surcharge vigilance is crucial.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 7 | 8 |
| Year 5 | 7 | 7 |
| Year 10 | 6 | 7 |
| Year 20 | 6 | 7 |
Cost Estimates
Year 1: $117000000000 (Low: $105300000000, High: $128700000000)
Year 2: $0 (Low: $0, High: $0)
Year 3: $0 (Low: $0, High: $0)
Year 5: $0 (Low: $0, High: $0)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- Rebate costs are immediate and are concentrated in the 2022 fiscal year.
- Surcharges and corporate rate changes are permanent and will provide ongoing additional revenue.
- Impact on taxpayers varies widely across income groups, with rebates primarily affecting low- to moderate-income families and surcharges affecting high-income individuals.