Ranked: The Revenue Impact of U.S. Tax Hikes
- Tax increases backing the American Jobs and Families Plan are expected to exceed 1% of U.S. GDP
- Only 3 tax increases in U.S. history have ever equaled or exceeded 1% of GDP
- The infrastructure plans will require 15 years of higher taxes on corporations to fund 8 years of spending
Ranked: The Revenue Impact of U.S. Tax Bills
The United States is opening up its wallet and writing some serious checks under the Joe Biden administration. The American Jobs Plan and the American Families Plan are expected to cost a combined $3.2 trillion in total taxpayer dollars. For comparison, the federal government spent slightly more than $6.5 trillion across all of 2020.
In order to foot the bill, tax hikes will roll out for corporations and the ultra-wealthy.
A History of Tax Hikes
But how do these present tax hikes compare to those of the past?
When comparing the estimated increase in tax revenue as a percentage of GDP, the Biden tax hikes fall on par with the Revenue Act of 1951 under Harry Truman, for the greatest tax increases—1.5% of GDP.
Within both tax bills, corporate and high personal incomes were key targets. But while the Revenue Act of 1951 saw a 5% increase on corporate taxes, Biden tax hikes are pushing for a steeper 7% spike from 21% to 28%. Prior to the Trump administration, corporate taxes were at the 35% level.
Here’s how those corporate tax increases would compare amongst some OECD countries:
|OECD Country||Corporate Tax Rate|
|🇰🇷 South Korea||25.0%|
Overall, tax increases in U.S. history appear to be fairly modest, as only three have ever generated revenue as high as 1% of GDP. The third biggest increase of all-time, the Revenue and Expenditure Control Act of 1968 under Lyndon B. Johnson, saw:
- Temporary 10% income tax surcharge on individuals through 1969
- Temporary 10% income tax surcharge on corporations through 1969
- Delayed scheduled reduction in telephone and automobile excise taxes
With the exception of WWII, federal spending and deficits as a percentage of GDP is already at unprecedented levels.
In fact, federal spending today is equivalent to 30% of GDP, and is estimated to be closer to 25% by the year 2030. Moreover, in raw dollars, total federal debt now stands at an unprecedented $28 trillion dollars.
Where does this data come from?
Source: JP Morgan
Notes: Joe Biden tax bill increases are estimates which may vary from future figures
The 10 Longest Range EVs for 2023
This infographic lists 10 of the longest range EVs currently for sale in the U.S. in 2023. The Lucid Air takes first place at 516 miles.
- EV models with over 300 miles (480 km) of range are becoming more common in the United States
- The Lucid Air (Grand Touring trim) has the highest EPA range at 516 miles (830 km)
The 10 Longest Range EVs for 2023
Range anxiety is frequently cited as one of the biggest turnoffs of electric vehicles (EVs).
Even as recent as 2021, the average range of an EV was just 217 miles (349 km), falling significantly short from the average gas car’s range of 413 miles (665 km). Thankfully, as this infographic shows, EVs with over 300 miles of range are becoming more common.
Below are the top 10 EVs for 2023, ranked by their EPA combined driving range. For further context, we’ve also included price. These values are for the specific trim that achieves the stated range. In some cases, more expensive trims are available but have a lower range (e.g. Tesla Plaid).
|Model||EPA Combined Driving Range||Price*|
|Lucid Air||516 mi (830 km)||$138,000|
|Tesla Model S||405 mi (652 km)||$84,990|
|Hyundai Ioniq 6||361 mi (581 km)||$45,500|
|Tesla Model 3||358 mi (576 km)||$55,990|
|Mercedes-Benz EQS||350 mi (563 km)||$104,400|
|Tesla Model X||348 mi (560 km)||$94,990|
|Tesla Model Y||330 mi (531 km)||$52,990|
|GMC Hummer EV Pickup||329 mi (529 km)||$110,295|
|Rivian R1T||328 mi (528 km)||$74,800|
|BMW iX||324 mi (521 km)||$87,100|
*Most recent prices available as of April 2023
Note that the EV market is rapidly evolving, and the data in this table has a limited shelf life. For example, Rivian is releasing a battery option dubbed the “Max pack” which promises up to 400 miles, but is not yet EPA rated.
Where Does This Data Come From?
Source: Car and Driver (range), manufacturer websites (price)
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