Joe Biden Announces Plan to Increase Tax Rate, Will You Get Affected?
On Tuesday, September 14, President Biden posted a series of tweets where he laid out his plan to tax the rich.
Even though Potus is planning to increase the tax, he made a promise to US citizens. If you’re earning less than $400,000 a year, you’ll never see the proposed tax increase.
The increase in tax rate proposes to pay for Biden’s 4.1 trillion dollar infrastructure and spending packages. Here’s the complete tweet:
If you make less than $400,000 per year, I’ll never raise your taxes one penny.
But if you’re at the very top, it’s time to pay your fair share.
We need to reward work in this country — not just wealth.
— President Biden (@POTUS) September 13, 2021
Later that day, he tweeted back-to-back on the tax increase and made remarks on how wealthy Americans are getting a free ride at the expense of the middle class.
Look, I don’t want to punish anyone’s success, but the wealthy have been getting a free ride at the expense of the middle class for too long.
I intend to pass one of the biggest middle class tax cuts ever — paid for by making those at the top pay their fair share.
— President Biden (@POTUS) September 14, 2021
It’s time the super-wealthy and big corporations pay their fair share in taxes.
— President Biden (@POTUS) September 14, 2021
To be clear: If you make under 400k, my Build Back Better Agenda won’t raise your taxes a cent.
Not only that. you’ll get a historic tax cut. and see lower costs on things like child care and health care.
And all of it will be paid for by the wealthy paying their fair share.
— President Biden (@POTUS) September 14, 2021
We’re going to put money directly into the pockets of American workers by lowering the costs of child care and elder care, and making universal preschool a reality.
These investments add up to thousands of dollars in savings each year for working families.
That’s a big deal.
— President Biden (@POTUS) September 14, 2021
Recommended Read: Biden Plots Tax Raise: 2.1 Million Small Businesses in Peril
Biden’s Proposed Tax Increase Plan
Once official, the proposed tax rate will go up from 37% to 39.6% for individuals earning over $400,000, or $450,000 for couples. The increase in the tax rate for high-income individuals is expected to raise $1 trillion for the government.
As per Associated Press, there would be a 3 percent tax on wealthier Americans with adjusted income beyond $5 million a year.
Big Businesses with an income of over $5 million would have to pay 26.5% tax instead of 21% tax.
The overall plan of these tax changes, documented in a 4-page proposal circulating among lobbyists and congressional aides.
The increase in tax rates estimates to raise government revenues by $2.9 trillion. Therefore covering the majority of the cost of President Joe Biden’s $3.5 trillion domestic investment plan.
The package also includes $80 billion more in additional funding for the Internal Revenue Service specifically devoted to tax enforcement of high-income taxpayers.
The proposed tax increase would be the biggest change since former President Donald Trump slashed the taxes in 2017.
What do you think of Joe Biden’s planned tax hike? Do you support it? Let us know in the comments section given below.
