Democrat presidential candidate Joe Biden has claimed that he won’t raise taxes on any American making less than $400,000. However, the Democrat has promised to raise corporate taxes on corporations from 21% to 28% and this will lead to increases for nearly all working Americans.
The American Enterprise Institute found that Biden’s tax increase would raise over $2.8 trillion over the next decade in which $1.9 trillion would result from the corporate tax increase.
“His plan would reverse the 2017 GOP income tax cut only for people who make more than $400,000, increasing their tax rate from 37% to 39.6%. He would also apply the 12.4% Social Security payroll tax to earnings over $400,000.
As a result of these taxes, the top 1% would see a reduction in after-tax income of 14.2%, taxpayers between the 95th and 99th percentile would see a small reduction in after-tax income, and everyone else would see an increase in after-tax income ranging from .5% to 11.3%.
“In 2021, Biden’s tax proposals would increase the tax burden on the top 5 percent of households and reduce the tax burden on the bottom 95 percent of households,” Kyle Pomerleau and Grant Seiter of AEI wrote.
When it comes to income taxes, Biden is right about only raising taxes on the wealthiest Americans, but over time, his corporate tax hike would trickle down to the rest of Americans, decreasing their wages as businesses deal with the increased taxes.”
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