A nonpartisan Tax Policy Center report found that Biden’s Build Back Better spending bill will raise taxes on up to 30 percent of the middle-class, as well as increases for low-income families. Will your taxes go up?
Biden’s “no new taxes” on middle-class pledge
In an interview on ABC on August 23, 2020, Biden pledged the wealthy would pay their fair share.
“I will raise taxes for anybody making over $400,000,” Biden said, as fact-checked by the Washington Post.
At the same time, Biden said the middle class would not see a tax increase.
“No new taxes [for people making less than $400,000],” Biden assured.
“Nobody making under 400,000 bucks would have their taxes raised, period, bingo,” Biden said during an interview on CNBC on May 22, 2020.
Biden spending bill will break pledge not to raise taxes on middle-class, analysis finds
If President Joe Biden’s build back better spending bill goes through, he will break his promise that his proposed tax increases will only affect Americans earning $400,000 or more per year, an analysis has found.
According to a new study published late Thursday by the nonpartisan Tax Policy Center, the Biden administration’s spending bill will result in a tax hike on up to 30 percent of middle-class families, the New York Post reported.
“Taking into account all major tax provisions, roughly 20 percent to 30 percent of middle-income households would pay more in taxes in 2022,” according to the Tax Policy Center.
How much more will the low and middle-class pay in taxes?
The good news is while up to 30 percent of middle-income households will pay more taxes in 2022, the Tax Policy Center report found that the increases will be “very small.”
On average, the Tax Policy Center determined the tax increases for low- and middle-income households will pay an additional $100 or less on average, FOXBusiness reported.
For middle-class households on the higher end of the scale – those earning between $200,000 and $500,000 – will pay an average of roughly $230 more per year if Biden’s spending plan is implemented.
How much will the wealthiest pay?
One of the hallmarks of President Biden’s Build Back Better plan was to make the wealthy pay their fair share. Forbes reported that the top one percent – those earning roughly $885,000 or more annually – would pay approximately $55,000 more than under current tax rates.
But the richest of the rich – the top 0.1 percent who earn $4 million annually or more – will pay an additional $585,000 on average, an increase of roughly 5.9 percent.