Tax Policy Center senior fellow Howard Gleckman recently shared that Joe Biden’s proposals would have 60% of households facing a higher tax burden, an indicator that Biden would break one of his campaign promises not to raise taxes for those making $400,000 or less. According to the report, corporate tax increases would affect most households in 2022, with three-quarters of middle-income households facing a tax increase averaging about $300.
Gleckman’s report also reveals that those earning between $75,000 and $100,000 would see their taxes rise about $440 and those making about $100,000 and $200,000 would see an increase of about $830. The tax burdens would continue to increase, with about 83.7% of the households in the $200,000-$500,000 bracket seeing a $2040 increase.
President Biden made the promise in Virginia last month that Americans earning less than $400,000 wouldn’t have to pay any taxes. He made the announcement after proposing a hike in capital gains rates on Americans earning more than $1 million per year.
“The reason I’m bothering to do this (raise taxes) is I keep hearing out in the press ‘Biden is going to raise your taxes. Anybody making less than $400,000 a year will not pay a single penny in taxes,” Biden said.
Biden’s proposals include an increase in corporate tax rates from 21% to 28% and raising the capital gains rate from 21% to 39.6%. While his policies propose that they will only affect households making more than $400,000, a tax analysis found that many low and middle-income people would see a higher burden as a result of lower compensation and investment earnings. The tax hikes were proposed to pay for his $1 trillion “American Families Plan” to increase government spending on infrastructure and paid family leave.
Chapman University associate professor Hank Adler said that the plan does not move the goalposts and totally changes the rules of the game.
“The American Families Plan as proposed would impose a new death tax that would punish middle-class individuals who chose to invest in America and leave something for their children rather than spend every dollar,” Adler said.
Rep. Kevin Brady also claimed that the tax increase would be another “major economic blunder” to the American people. He said that the Tax Cuts and Jobs Act surged because it was blue-collar workers and local communities that benefited. He said that doubling the tax rates would have the opposite effect and punish the most frequent and successful researchers. “You don’t rebuild a healthy economy by punishing those who invest in that local and U.S. economy, and that’s exactly what you have here,” he said.
Brady even claimed that the increases in taxes would kill 6 million jobs across the country. He said that the plan had wasteful spending on things such as the Green New Deal and did not fund the infrastructure of hardworking families.
Biden’s capital gains tax hike would tank middle-class retirement accounts and everything former President Donald Trump has done. His policies have killed millions of jobs in America, with another six million on the way. Tax increases are a result of an increase in the price of all products and services, which affect everyone no matter what economic class.
