Biden Promises No Tax Increase for Those Earning Less Than $400K

Biden pledges no tax hikes for those earning under $400K, aims to raise revenue from corporations and high-earners to fund infrastructure, healthcare, and education priorities.

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Nasiru Eneji Abdulrasheed
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Biden Promises No Tax Increase for Those Earning Less Than $400K

Biden Promises No Tax Increase for Those Earning Less Than $400K

President Joe Biden has reiterated his promise that Americans earning less than $400,000 per year will not see their taxes increase under his administration's economic plans. The pledge comes as the White House continues to push for increased spending on infrastructure, healthcare, education, and other priorities.

During a recent speech, Biden emphasized his commitment to ensuring that the tax burden does not fall on middle-class and working families. "I've said it before, and I'll say it again: If you make under $400,000 a year, you won't pay a penny more in taxes," the president declared. "It's time for the wealthiest Americans and big corporations to pay their fair share."

The Biden administration's proposed tax reforms aim to raise revenue primarily by increasing taxes on corporations and high-income earners. The plans include raising the corporate tax rate from 21% to 28%, increasing the top individual income tax rate to 39.6%, and closing various tax loopholes that benefit the wealthy.

Critics argue that the tax increases could dampen economic growth and discourage business investment. However, the White House maintains that the additional revenue is necessary to fund vital programs and reduce income inequality. Biden has stressed that his economic agenda is designed to create jobs, boost competitiveness, and build a stronger middle class.

Why this matters: The debate over tax policy is central to the ongoing negotiations between the Biden administration and Congress regarding the president's ambitious spending proposals. The outcome will have significant implications for the U.S. economy and the financial well-being of millions of Americans.

Treasury Secretary Janet Yellen defended the administration's tax plans, stating, "By asking the wealthiest to pay their fair share, we can invest in our people, our infrastructure, and our future. It's the right thing to do for our economy and our society." While the discussions continue in Washington, Biden remains steadfast in his commitment to shield middle-class taxpayers from increased tax burdens while pursuing his economic agenda.

Key Takeaways

  • Biden promises no tax hikes for those earning under $400K/year.
  • Proposed tax reforms aim to raise revenue by increasing taxes on corporations and high-income earners.
  • Critics argue tax increases could dampen economic growth and discourage business investment.
  • The debate over tax policy is central to negotiations on Biden's spending proposals.
  • Treasury Secretary Yellen defends tax plans as necessary for investing in the economy and society.