After President Joe Biden had promised as a candidate that he would only raise taxes on those earning more than $400,000, the White House announced that it will include those earning half that amount.
In the largest tax increase recorded in the last 30 years, Biden is breaking his promise by subjecting families where both spouses receive incomes of at least $200,000, reported the March 18 New York Post.
Moreover, in Biden’s recent interview with ABC News anchor George Stephanopoulos on March 17, he implied that he stood by his campaign promise.
“Yes, anybody making more than $400,000 will see a small to a significant tax increase,” Biden said at the time.
And he added, “If you make less than $400,000, you won’t see one single penny in additional federal tax,” which now sounds incongruous with the White House announcement just a day after Biden’s remarks.
Treasury Secretary Janet Yellen said that there will be higher tax rates, and that the package under preparation includes increases for corporations and individuals, according to Bloomberg.
Thus, corporations will experience an increase from 21% to 28%, and tax preferences for limited liability companies or partnerships will be reduced.
The Tax Foundation expressed concern because it estimates that 159,000 jobs will be lost as a result of the increase in the long term, in addition to the fact that wages and economic output will also be negatively affected.
Biden is also likely to repeal parts of the 2017 tax law achieved by President Donald Trump, which cut taxes to give oxygen to businesses and wealthy individuals, attracting new investment and creating millions of new jobs.
Rep. Kevin Brady (R-Texas), ranking member on the House Ways and Means Committee, said, “There seems to be a real drive to tax investment of capital gains at marginal income rates,” calling it a “terrible economic mistake,” NewsMax reported.
For some analysts, these substantial tax increases are aimed at expanding government power to more easily impose the left’s globalist agenda from government.