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Joe Biden announces plan to raise taxes for rich, says citizens earning less than $400,000 will never face raise in taxes

"I intend to pass one of the biggest middle class tax cuts ever — paid for by making those at the top pay their fair share," Biden said in a tweet.

September 14, 2021 / 09:12 PM IST

United States president Joe Biden announces his plan to increases taxes on those who can afford to pay more. Through a series of tweets, Biden promised the US citizens making less than 400,000 dollars will not see any tax increases to help pay for the 4.1 trillion dollar infrastructure and spending packages he has proposed.

The proposed top tax rate would revert to 39.6 percent on individuals earning more than 400,000 dollars, or 450,000 dollars for couples, and there would be a 3 percent tax on wealthier Americans with adjusted income beyond 5 million dollar a year, reported Associated Press.

For big businesses, the proposal would lift the corporate tax rate from 21 percent to 26.5 percent on incomes beyond 5 million dollars, slightly less than the 28 percent rate the president had sought.

The overall package of tax changes, summarized in a four-page document circulating among lobbyists and congressional aides on Sunday, was estimated to raise 2.9 trillion dollar in new revenue, largely covering the costs of President Joe Biden's 3.5 trillion dollar domestic investment plan, reported Reuters.

The proposal would also raise the top individual tax rate to 39.6% from 37 percent, as part of a series of changes aimed at high income individuals that was estimated to raise approximately 1 trillion dollars.

The package also includes 80 billion dollar more in additional funding for the Internal Revenue Service specifically devoted to tax enforcement of high income taxpayers, which could raise as much as 200 billion dollar in additional revenue.

In all, the tax hikes are in line with Biden’s own proposals and would bring about the most substantive changes in the tax code since Republicans with then-President Donald Trump slashed taxes in 2017.

With inputs from agencies
Moneycontrol News
first published: Sep 14, 2021 09:12 pm

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