• December 6, 2021

Despite campaign promises, 60% could see tax increase under Biden proposals

 Despite campaign promises, 60% could see tax increase under Biden proposals

BIDEN NOT OUR PRESIDENT

An analysis by the nonpartisan Tax Policy Center found 60% of households would face a higher tax burden under President Joe Biden’s proposals.

“For those looking to see if Biden kept his promise to not raise taxes for those making $400,000 or less, the answer is: mostly, but not entirely,” said Tax Policy Center senior fellow Howard Gleckman. “Including corporate tax increases, most households would pay more in 2022. About three-quarters of middle-income households would face a tax increase averaging about $300. But nearly all would be a result of those higher corporate taxes.”

Biden pledged during the 2020 campaign not to raise taxes on people making less than $400,000, but the analysis shows the majority would see at least some increased taxes from his proposals. Roughly three-quarters of households earning between $75,000 and $100,000 would see their burden rise about $440, while 69% of those making between $100,000 and $200,000 would see an increase of $830 on average.

BIDEN’S POLICIES ARE RUINING THE ECONOMY

The increased tax burden continues to rise the more a household makes, with 83.7% of households in the $200,000-$500,000 bracket seeing an increase averaging $2,040. The highest burden falls on those making above $500,000, with 99.8% of those between $500,000-$1 million seeing an increase of $8,810 and those making over $1 million seeing an average increase of $265,939.

Biden’s proposed tax increases include raising the corporate rate from 21% to 28% and the capital gains rate from 21% to 39.6%. The president has also called for raising the nation’s top rate back to 39.6% from 37%.

Biden’s budget proposes making single individuals making more than $452,700 subject to the top rate, while married couples earning more than $509,300 would also be subject to it. Heads of households making more than $481,000 would be subject to the top rate as well, along with married individuals filing separately that make more than $254,650.

Biden’s proposal does not call for a direct tax increase for those making under $400,000, but the analysis found that many low- and middle-income people would see a higher burden indirectly as a result of lower compensation and investment earnings stemming from the corporate tax hike.

But some of the losses for low- and middle-income households could be made up by expanded tax credits in Biden’s plan, including the proposed expansion of the child tax credit. When factoring in those credits, a household making between $100,000 and $200,000 would see its overall tax burden shrink by $110. Households making between $75,000 and $100,000 would pay about $240 less, while those earning between $50,000-$75,000 could save an average of $540.

CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER

Biden’s proposed tax hikes are meant to pay for his plan to increase government spending on education, child care, and paid family leave. The plan, which calls for $1 trillion in new spending and $800 billion in middle-class tax credits, has been called a “once-in-a-generation investment” in the country’s future by the Biden administration.

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Editor @Investigator_50

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