East County Gazette

Joe Biden Announces Plan to Increase Tax Rate, Will You Get Affected?

USA Tax Hike

USA Tax Hike

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:

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.

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