Biden may hike taxes for married couples earning $510,000 – breaking his promise that he wouldn’t raise rates for Americans making less than $400,000 a year
- Joe Biden could break his promise not to raises taxes on those making less than $400,000 as he proposes hiking rates for couples making just under $510,000
- The White House said the tax hike would help pay for the $1.8 trillion American Families Plan unveiled by the president at his address Wednesday
- Biden has repeatedly said his tax policies would not raise rates for individuals making under $400,000
Joe Biden will already break his promise to exempt Americans making under $400,000 from tax hikes as he plans to raise the top tax rate for married couples making just over $500,000.
The White House clarified to Axios on Wednesday that Biden’s vow not to raise taxes on people making $400,000 or less was in reference to an individual and not couples filing jointly.
However, the president is now proposing raising the top tax rate from 37 per cent to 39.6 per cent for couples making $509,300 in combined income. Couples where each spouse makes $399,999 on their own will not escape the tax increase and therefore goes against Biden’s promise not to raise taxes on individuals making less than $400,000.
More precisely two individuals each with taxable income exceeding $255,000 who are married would be subject to the tax increase.
The rate is also increasing for individual filers making more than $452,700 in Biden’s new proposal.
Joe Biden could break his promise not to raises taxes on those making less than $400,000 as he proposes hiking rates for couples making just under $510,000
According to an Urban Institute Tax Policy Center analysis, under Biden’s new plan, the top 1 per cent of earners would owe an average of $260,000 more per year in taxes.
The White House said the tax cap increase will help fund Biden’s $1.8 trillion American Families Plan and reasserts this will only affect less than 1 per cent of Americans.
‘Consistent with the president’s campaign proposal, we are proposing to reverse the tax cut for the top bracket by returning that top tax bracket to what it would’ve been under pre-2017 law,’ the White House official said. ‘That applies to less than 1% of Americans — the very top earners.’
Biden has repeatedly assured Americans, both throughout his campaign and since taking office, that ‘no one’ making less than $400,000 would pay higher taxes.
In May, when he was still running for president, Bidne promised in an interview with CNBC: ‘Nobody making under 400,000 bucks would have their taxes raised, period, bingo.’
One of former President Donald Trump’s biggest accomplishments was the 2017 tax cuts, which saw most Americans taking home more in their paychecks. It did, also, benefit top earners and corporations – something those on the left have lamented.
Biden unveiled in his first address to a joint session of Congress Wednesday evening yet another multi-trillion-dollar plan – this time aimed at ‘human infrastructure’ or economic and social welfare plans.
He says he plans to pay for much of that $1.8 trillion ‘American Families Plan’ portion through raising taxes.
The president’s American Rescue, Jobs and Family Plans could cost a combined $6 trillion – and only $1.9 trillion of that total has already been approved by Congress.
Biden also plans to raise the top capital gains tax for households making more than $1 million, which could discourage investment in the stock market. These individuals would be taxed at a 43.4 per cent rate.
The White House made sure to reassure this would only affect around 500,000 Americans.
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