The White House has indicated that it wants to raise taxes on the wealthy and corporations, but has not explained how President Biden’s $400,000 tax increase threshold would work.
Most Democrats support the plan to raise taxes on the wealthy and corporations, but suburban Democratic lawmakers, who represent residents with high incomes, are sensitive to the content of the tax increase because it could affect the rights of their constituents.
Conservatives have protested that Biden is trying to violate a campaign promise to raise taxes only on the wealthy.
When Biden explained the tax increase, he used different language to refer to the income threshold for the tax increase, rather than explicitly targeting individuals earning more than $400,000 a year or the combined income of spouses in a single household.
In most cases, Biden said he would not raise taxes on any individual earning less than $400,000, but he sometimes said it was families earning less than that income threshold.
Biden first mentioned a tax increase as a presidential candidate in May 2020 when he said, “There will be no tax increase on anybody making less than $400,000, period, bingo.”
After the Labor Department released unemployment data in March, Biden said the infrastructure plan “will not raise taxes by a single cent on households earning less than $400,000 a year.”
When discussing the infrastructure plan on the 7th, Biden added, “I will not raise taxes on anyone making less than $400,000 a year.”
Biden repeatedly mentioned during the campaign to raise taxes on high-income earners, but never stated the details of the tax increase after taking office, only that the corporate tax may increase from the current 21% to 28% to fund infrastructure; in addition, Biden will also focus on health and child care, which will be paid for by the higher rate of income tax collection on high-income individuals.
If the tax increase applies to married spouses with an annual income of more than $400,000, it may appear that one of the spouse’s income is less than $400,000, but because the couple filed a joint return and was disguised as a tax increase.
White House spokesman Sharkey (Jen Psaki) said last month that individuals and families earning less than $400,000 will not be raised tax rates, “This is a campaign promise of the president, and the details will be discussed again when the tax bill is introduced.
Think tank analysis, Biden’s proposed $400,000 threshold may apply to single people and married couples.
Urban-Brookings Tax Policy Center (Urban-Brookings Tax Policy Center) co-founder Eric Toder said Biden’s plan does not deny the hypothetical, but also does not mean it will be the final word.
The Republican Party attacked the program for the income of couples as the threshold, “The Wall Street Journal” editorial last month attacked Biden’s tax increase object ambiguity, Biden said on the one hand, income of less than $ 400,000 will not be taxed, Sharkey said it was a family unit, if couples earn $ 200,000 each will be affected.
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