The higher income tax hike would help fund Biden’s plan to invest $ 1.8 trillion in welfare and family assistance programs. Thresholds were first reported by Axios.
Why is this important: Biden has repeatedly stated that he will not raise taxes for anyone who earns less than $ 400,000 a year, although the White House has occasionally confused whether this vow applies to individuals or to married couples. .
The White House official noted that the top bracket would apply to less than 1% of taxpayers, and said the proposal was in line with the president’s $ 400,000 wish.
“If you are an American person or family earning less than $ 400,000, you will not see an increase in your tax dollars. And in fact, for the top bracket, it’s actually a little higher than that, ”the official said.
Nonetheless, the proposal would also mean that some high-income couples where at least one member does not earn $ 400,000 per year would face a higher top tax rate – such as a couple where both people earn $ 275,000 per year. .
The new upper tax bracket proposed by Biden would also start at an income level below the current threshold. For 2021, the highest 37% starts at $ 523,600 for individuals and $ 628,300 for married couples.