And as many as 75 percent of middle income households face a tax increase under Biden’s plan, even though the highest-earning households will pay the vast majority of the costs.
President Joe Biden’s pledge not to raise taxes on American families earning less than $400,000 annually was a centerpiece of his campaign and of his first months in the White House. But a new analysis suggests that more than 60 percent of taxpayers will face a higher burden under Biden’s first budget plan.
The Tax Policy Center (TPC), a center-left think tank based in Washington, D.C., reports that “nearly all” of Biden’s proposed tax increases would be borne by American households earning over $800,000 annually. But while the tax increases are undeniably concentrated in the upper echelons, most taxpayers would see at least a small increase in what they owe the federal government via income, payroll, and corporate taxes. In fact, three-quarters of households earning between $75,000 and $100,000 annually would face higher taxes under Biden’s budget—with an average tax increase of $440.
The tricky thing is that those higher taxes would be somewhat hidden for most individuals and households because they would be the result of higher corporate taxes.