White House: No individual making less than $400K will pay more in taxes
White House press secretary Jen Psaki said Wednesday that neither individuals nor families earning less than $400,000 per year will see their taxes increase under President Biden’s tax plans.
“No individual making less than $400,000 will pay more in taxes,” Ms. Psaki told reporters at the White House.
“This is a commitment he made on the campaign trail, which he is committed to abiding by,” she said. “Once we propose a tax proposal, we’ll have more to discuss.”
Ms. Psaki and the White House had previously said this month that the president’s $400,000 threshold applied to households or families.
Mr. Biden said in a recent interview that people earning more than $400,000 per year can expect to see a “small to significant” increase in their taxes.
“If you make less than $400,000, you won’t see one single penny in additional federal tax,” Mr. Biden told ABC News.
After that interview, the White House said the $400,000 threshold applied to families, not individuals — which appeared to be short of what the president had vowed on the campaign trail.
“He won’t ask a single person making under $400,000 per year to pay a penny more in taxes, and will in fact enact more than one-dozen, middle-class tax cuts that will finally give working families the financial support they deserve,” says a piece from his campaign website comparing his tax plan to former President Trump’s.
Some analysts question whether Mr. Biden’s tax plans, which include a desire to increase the corporate tax rate from 21% to 28%, can avoid indirectly hitting middle-class families with higher consumer prices or utility bills even if they don’t see a direct tax rate hike.