Tax debate is about ‘less freedom and a bigger federal government’: Former congressman
Liberty University Business School Dean and former Congressman Dave Brat discusses the Biden administration’s tax proposal.
White House press secretary Jen Psaki on Wednesday said that individuals who make up to $400,000 won’t pay an extra penny in taxes under President Biden’s new plan.
The president has been clear all along that families earning up to $400,000 would not be the target of the tax hike, but it was unclear whether there would be a lower income threshold for individual filers.
When asked by FOX Business’ Blake Burman on Wednesday what the threshold would be for those individual filers, Psaki said $400,000.
“So just to be clear, individual filers, if you make up to $400,000 you're an individual, you will not pay a penny more, just like families won't pay a penny more?” Burman asked.
“That's right,” Psaki responded.
MILLIONS OF BACKLOGGED TAX RETURNS MAY BE PROCESSED BY SUMMER, IRS COMMISSIONER SAYS
Individuals who earn a lesser amount could be affected, however, if they are part of a couple filing jointly that reports a cumulative income of $400,000 or more.
Tax rates on people earning more than the specified threshold would increase to 39.6%, from 37%. These people may also be subject to a 28% cap on itemized deductions.
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The president has also proposed taxing capital gains at ordinary income rates and eliminating step-up in basis, which is the readjustment of the value of an appreciated asset.
Another tax proposal involves raising the corporate tax rate to 28% from 21%.
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Biden is hoping to push through two more legislative efforts, including one focused on infrastructure and clean energy and another on domestic people-facing programs like childcare.
Revenue collected from the tax increases is expected to help fund both of these initiatives.
FOX Business’ Blake Burman contributed to this report.
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