Those Making Under 400K Will Still Pay Taxes

Misbar has discovered that Biden is basing his upcoming spending plans on a series of tax hikes with the single rule that "no one making under $400,000 will see their federal taxes go up," according to Businessinsider.com. However, in a speech that the President gave at Tidewater Community College on May 3, 2021, he obviously misspoke when he said “that people making under $400,000 would not pay a single penny in taxes.” According to FoxBusiness.com, the President left out the key word, “more” in his speech when he was talking about tax hikes. 

Biden plans to pay for his upcoming spending proposals in at least three ways: recover money from tax evaders, increase the marginal income tax rate for the top one percent of American income earners, and raise capital gains and dividend tax rates for those who earn more than $1 million a year.

As Biden’s proposals are formalized, experts say whether or not he can keep to his commitment of not raising taxes for anyone earning under $400,000 will be under scrutiny according to CNBC.com. The $400,000 earnings threshold that Biden refers to applies to families, not individuals.

While Biden did say in a speech that anyone making less than $400,000 would not pay any taxes, he misspoke and should have said those households making less than $400,000 would not pay any more taxes than they are paying now.