Biden's $4 trillion tax plan targets wealthy individuals and corporations; it won't increase taxes on people making under $400,000 a year.
Democratic presidential candidate Joe Biden and his running mate California Senator Kamala Harris' $4 trillion tax plan categorically states that it will not increase taxes for anyone making less than $400,000 a year. "As President, Biden will require corporations and the wealthiest Americans to finally pay their fair share," Biden's website states. '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'.
An AP and MarketWatch analysis found Biden's plan will target wealthy individuals and corporations and not impact middle-class families. Biden's plan claims it will restore the top individual tax rate from 37 to 39.6 percent, and raise the corporate tax rate by seven percent. Biden would also make wages above $400,000 subject to the 12.4 percent Social Security payroll tax, which is split between employees and employers.
Tax burdens on the top 0.1 percent, making $3.7 million or more, would increase by about $1.8 million, nearly one-quarter of their after-tax incomes, analysis by the Tax Policy Center found. It claims the 2021 tax changes would reduce the after-tax incomes of middle-income people by about 0.4 percent, or $260, and reduce incomes for those at the bottom of the income distribution by about 0.2 percent, or $30. The lost income would not be a result of tax hikes but from declines in wages caused by Biden's proposed business tax increases.