Biden plans tax increases on high-income earners to pay for infrastructure
(Gray News) - President Joe Biden said in an interview that people earning $400,000 or more would see a “small to significant tax increase” in his plan to pay for infrastructure and other initiatives.
“If you make less than $400,000, you won’t see one single penny in additional federal tax,” he said in an ABC News interview aired Wednesday.
According to a Bloomberg report, tax proposals under consideration by the Biden administration follow closely with what he suggested during his campaign. They include a rollback of some of the Trump tax cuts from 2017, including raising the corporate tax rate from 21% to 28% and an expansion of the estate tax that currently exempts the first $10 million.
Other ideas under discussion include returning the top income tax bracket to the pre-2017 level, a minimum on large companies like Amazon that pay little to no taxes and taxing millionaires’ investment income, per NBC News reporting.
Republicans in Congress have said they would not consider any tax increases. Biden said in the interview that “I may not get (Republicans), but I’ll get the Democratic votes.”
Democrats have a slim majority in the House and a 50-50 split in the Senate, with Vice President Kamala Harris able to cast tie-breaking votes.
Tax proposals could be passed through a Senate process called reconciliation, which requires only a majority instead of a filibuster-proof 60 votes. The Trump tax cuts and the Biden COVID-19 relief bill passed in March both were approved in that manner.
No formal announcement has been made, and multiple plans are reportedly still under consideration. The White House said a plan would be announced some time after the COVID relief bill was signed, which happened March 11.
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