Biden Breaks Promise to Not Raise Taxes on ‘Anybody’ Making Less Than $400K
$400,000 threshold for tax increases applies to 'families' rather than individuals
One of Joe Biden's campaign promises was not to raise taxes on “anybody” making $400,000 or less.
But according to the White House, the number could be considerably lower, if you are married.
During an interview with ABC News last year, Biden said, “I will raise taxes for anybody making over $400,000.”
“So no new taxes for anyone under $400,000?” the interviewers asked Biden.
Biden responds, “No new taxes. There’s no need for new taxes.”
Biden was responding to a question about Trump warning people that Biden would raise their taxes.
Once again, Trump's warning has proved correct.
White House press secretary Jen Psaki clarified Biden’s proposed tax hike would apply to people who earn $200,000 per year if they are married to someone who makes the same amount.
Psaki said the proposed $400,000 threshold for tax increases applies to “families” rather than individuals.
But Biden said he would not raise taxes on “anybody” making less than $400,000, he did not mention families.
Earlier this month, Neon Nettle reported Biden was preparing to follow up on his controversial COVID-19 stimulus bill with the “first major federal tax hike” in almost thirty years.
Bloomberg News reported:
“Unlike the $1.9 trillion Covid-19 stimulus act, the next initiative, which is expected to be even bigger, won’t rely just on government debt as a funding source."
“While it’s been increasingly clear that tax hikes will be a component — Treasury Secretary Janet Yellen has said at least part of the next bill will have to be paid for, and pointed to higher rates — key advisers are now making preparations for a package of measures that could include an increase in both the corporate tax rate and the individual rate for high earners."
Biden sources say the administration was going to push for the following tax policies:
- Raising the corporate tax rate to 28% from 21%
- Paring back tax preferences for so-called pass-through businesses, such as Limited-liability companies or partnerships
- Raising the income tax rate on individuals earning more than $400,000
- Expanding the estate tax’s reach
Some experts expressed concern about the impact the move would have on the public.
The Tax Foundation conducted an analysis to determine what would happen if the rate increased from 21 percent to 28 percent and a 15 percent minimum tax “on the book income” for big companies was introduced.
The Tax Foundation estimates that 159,000 jobs would be lost as a result of the hike in the long term, along with wages and economic output taking a slight hit.