Politics

Despite Campaign Promises, 60% Could See Tax Increase Under Biden Proposals

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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.

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 … (Read more)

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