President Biden vowed on the campaign trail that taxes for Americans earning less than $400,000 would not go up, however, now Biden is walking back on that promise. However, that tax threshold only applies to individual filers, and married couples whose combined salaries exceed that amount could see a big spike in taxes
The $1.8 trillion “American Families Plan,” released Wednesday, raises the top tax rate to 39.6% from 37%, “applying only to those within the top 1%,” according to a copy of the proposal. The higher tax rate will apply to families with joint taxable income of about $509,300 and individuals earning more than $452,700, a White House official confirmed to FOX Business.
Under those proposed brackets, a hypothetical couple that earns $600,000 combined each year would be required to pay the higher taxes, even if the spouses individually made less than $400,000. This would apply if the couple filed jointly.
“Consistent with the president’s campaign proposal, we are proposing to reverse the tax cut for the top bracket by returning that top tax bracket to what it would’ve been under pre-2017 law,” the official said. “That applies to less than 1% of Americans – the very top earners.”
The current top marginal rate of 37% is currently paid by singles earning $523,601 or more and couples making $628,301 or more.
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