During the 2020 campaign, Joe Biden promised over and over he would not increase taxes on anyone earning less than $400,000 per year.
Now, only two months into his time in office, that has changed.
Biden’s press secretary Jen Psaki clarified Biden’s $400,000 threshold for tax increases by saying it applies to families, instead of individuals, meaning the increase could be levied against people who earn $200,000 per year if they are married to someone who earns that same number.
Psaki did not mention an exact threshold for individual earners.
Biden is targeting his next economic bill as a way to achieve one of the largest tax hikes in nearly 30 years.
His planned changes include: increasing the corporate tax rate to 28%, increasing the individual income tax rate on those making over $400,000, enlarging the estate tax, enacting a larger capital-gains tax for people earning over $1 million and removing tax benefits for pass-through entities like LLCs.
President Biden also wants to do away with the Trump tax cuts, which will lead to a tax increase for the middle class and most Americans. He also wants to bring back the death tax.
These tax hikes could decimate any economic progress made during the past months as the nation recovers from bad government choices made during coronavirus.