On Friday, Biden acknowledged the $2 trillion infrastructure plan that will bring tax increases to some people who earn $200,000 and he insisted it “will not slow the economy at all.”
The president suggested that the highest income tax bracket hike would not hit any person who earns less than $400,000.
However, this contradicts with his press secretary Jen Psaki’s recent statement that a two-partner family would be impacted if combined income crosses $400,000.
According to Biden, his infrastructure plan would be paid for by those who can afford higher taxes.
“It is a once-in-a-generation investment in our economic future, a chance to win the future — paid for by asking big corporations, many of which do not pay any taxes at all, just to begin to pay their fair share. And it won’t raise a penny of tax on a family making less than $400,000 a year, no federal tax, no addition,” he said.
This description of the tax hike is a significant change from his earlier remarks, and could mean families on the cusp of affluence in areas with high costs of living are impacted.
“No one making under $400,000 will see their federal taxes go up. Period.” Biden said on Wednesday in a speech in Pittsburgh unveiling the tax increase and infrastructure plan.
Biden quoted “If you make less than $400,000, you won’t see one single penny in additional federal tax,” in his interview last month with ABC
Biden also said Friday, “Raising taxes, the studies show, will not slow the economy at all. Asking corporate America just to pay their fair share will not slow the economy at all. It will make the economy function better. It will create more energy.”
Psaki and White House chief of staff Ron Klain insisted Thursday that businesses would be able to bear tax hikes as they rebuild following the COVID-19 pandemic.
Biden spoke after surprisingly strong job growth figures for March that indicated nearly 916,000 new jobs were created, lowering the unemployment rate to about 6 percent.
The president’s plan would boost the corporate tax rate from 21 percent to 28 percent. It was lowered in 2017 by President Donald Trump’s tax reform law from 35 percent. The plan also would impose new taxes on overseas business profits and could include an increase on capital gains taxes on investments like stocks and real estate.
Democrats may attempt to ram through the bill under special budget reconciliation rules that avoid the usual 60 votes needed in the Senate. While Republicans in Congress oppose tax increases.
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