He also added that Americans who make less than $400,000 "won't see one single penny in additional federal tax."
In an interview with ABC News on Tuesday, March 16, 2021, President Joe Biden reiterated that he still intends on raising taxes for the wealthier section of Americans, saying "anybody making more than $400,000 a year will see a small to significant tax increase." This is the same thing he'd said back in August 2020, per The New York Times. Along with this, he also added that Americans who make less than $400,000 "won't see one single penny in additional federal tax."
President Joe Biden has vowed to increase taxes for those earning more than $400,000. He says those who make less won't see "one single penny" in additional federal tax.https://t.co/9Vws0Yw1Uw pic.twitter.com/bBhYWfD2YP— AL.com (@aldotcom) March 21, 2021
He added, "If you take a look at the corporate tax rate under Trump, if you raise the tax rate back up to what we thought it should be, it was at 35%, they brought it down to 21%. Bring it to 28%. That raises $800 billion. You have now 90 of the Fortune 500 companies don't pay a single penny in federal tax. Not a penny. Making billions of dollars."
One of the first things that Biden did after becoming the President was to roll out his $1.9 trillion Covid-19 relief law which got a lot of flak from Republicans because the tax breaks in his plan go to the bottom 60% of the population while "their idea of a tax cut is to give the Trump tax cut where 83% went to the top 1% of people in America."
And guess what? 75% of the Anerican population agrees with him.— One Day Things Will Get Better.... (@Imkindofsad1978) March 17, 2021
With not many Republican takers, Biden remains optimistic with his Democratic votes. Biden added, "If we just took the tax rate back to what it was when (George W.) Bush was president, the top rate paid 39.6% in federal tax, which would raise $230 billion. Yet they're complaining because I'm providing a tax credit for child care? For the poor? For the middle class?" It is a possibility that some Democrats may not be on board with his tax plan, but he does have the full support of Sen. Joe Manchin (D-WV).
Only about 1.8% of taxpayers make over $400K a year. People making over $400K are doing very well. Don't feel bad for them. https://t.co/wuH3a3vurg— Emily C. Singer (@CahnEmily) March 17, 2021
Sen. Manchin is one of the most powerful moderates in the Senate, and he's on board with tax increases to pay for infrastructure and climate bills, reports Vox. "Whatever the president proposes will be just the beginning," said Michael Mundaca, head of Ernst & Young’s national tax department and former assistant secretary for tax policy for the Treasury Department. "There are very strong personalities with deep-seated views on tax policy in general. The tight majorities in the Senate mean everyone has a stronger, louder voice than they otherwise would have in a more normal, less closely divided Congress."
By my estimation anyone making over $100k is doing reasonably well, and at least outside of a handful of major cities wouldn’t be unduly burdened with extra taxation.— Ewan Ross (@ewanrross) March 17, 2021
So yeah, 400k... cry me a river when earnings over that take a little extra hit.
White House press secretary Jen Psaki said that Biden believes that "those at the top are not doing their part" and "obviously that corporations could be paying higher taxes." Treasury Secretary Janet Yellen suggested that the White House would put forward proposals in due course of time to get deficits under control, noting that the tax hike could happen in the near future. "(Biden) hasn't proposed a wealth tax but he has proposed that corporations and wealthy individuals should pay more in order to meet the needs of the economy, the spending we need to do, and over time I expect that we will be putting forth proposals to get deficits under control," Yellen said. She also clarified that "that the $400,000 threshold applies to families, not individuals. Consequently, individuals who make $200,000 could be affected if they are married to someone who earns that same amount, for example."
This is the right thing to do! The top earners have been given undue tax benefits under the former Administration and allowed tax loopholes for decades that enable them not to pay their fair share. It's time to fix that.— Rosanna (@RosannaQuadling) March 17, 2021
But, there are obstacles that need to be crossed, because the US economy is still only recovering from the pandemic. "We’re still in the midst of a recession, and it would be pretty easy to make the argument that this isn’t a great time to be talking about tax increases," said Leonard Burman, co-founder of the Tax Policy Center and a Syracuse University economist. "If the economy comes roaring back, then it would be the appropriate time to be talking about tax increases." He added, "But the question is just timing, and it’s always a bad time for a tax increase because it’s hard to get your base excited about raising taxes."
Not to mention, tax increases are only on the amount they make over $400K. So if you make $450K for example, you'd see extra tax on the $50K in income. It's not a huge deal for people who are in the top 2% of this country.— Emily C. Singer (@CahnEmily) March 17, 2021